Obvious choice is the new Jetta Sportwagon diesel - also the Escape or Highlander hybrid. Those last two would probably be better if she, er, you want to pimp out your environmental credentials to everyone passing by.

Ford Escape Hybrid or Mariner or Tribute... AWD, great MPG, somewhat clean, the new improvements for 09 should make it a better drive, and some space in the back. Or just a regular gas-only powertrain.

I'd like to sell you on my preference, but I say keep your current vehicle. It'll cost less and it's more environmentally friendly to not buy a new vehicle. Being a 2005, it should be "like new" anyway.

Sounds like she got the car buying bug because she's just tired of her current ride. Problem is, there's nothing very intersting that's new right now in that category. Besides the ones mentioned here, she could look at the CR-V AWD which looks good in the redesign. You can't go wrong with a Honda.

Brn is right. You should admit that your enviro-ego has gotten the best of you and just keep your Touareg.

But if you find yourself withering under the gaze of Barbra Streisand and must have a new car, get the 2009 Jetta SportWagen TDI.

P.S. I meant to add that if you really must have AWD, wait until the new Subaru Forester shows up with a boxer diesel. Or do you already have those in Canada?

Highlander Hybrid would give her the same space, size and more power with much better fuel economy.

RAV4 would also provide ample room, AWD and good power with the 4 cylinder and also stellar fuel economy.

"....but it's time for something new."

Are you really sure it's time for something new? Is a 3-year-old car not pretty new still? The Touareg is more than large enough to accomodate the two kids......like brn pointed out, it less environmentally friendly to replace the gas guzzler....

Buti if you really have to get a new car, I thinkg the Jetta Sportwagen diesel would probably be the best bet. Escape Hybrid is also a great choice. If you don't care for driving dynamics, a Prius is also a great choice!

Coming to think of it, it appears you're leasing the Touareg and that's why it's time to replace after three years. Please buy your next car instead of leasing it, and keep it for 10 or more years. It's more environmentally friendly that way.

If you opt for the Prius, wait for the 2009 model. Also, Prius are common as taxis in Canada, so I don't know if you'll be comfortable owning one.....

What about a Saab 9-3 sportcombi. Great gas mileage, sporty, and extremely safe. If you want something with more room there's always the 9-5. Its got the most comfortable seats I've ever sat in, in a car.

Get rid of that VW before it falls to pieces and the resale value tanks any further!! And don't get into the same trap with a Saab (sorry starbird). Nissan Murano looks sharp, great functionality, great performance, AWD is optional, ok mpg.

My vote is for the Jetta Sportwagon TDI or the Mazda5 "minimini" van. A minivan that's actually cool looking and fun to drive!

"What about a Saab 9-3 sportcombi. Great gas mileage"

At 18/24/20, that's hardly great.

In regards to Prius taxis in Canada, that's more of a Vancouver thing. Toronto uses Crown Vics, Impalas, Taurus, plus a few Camrys.

@cx7lover: Isn't Ford replacing the rear disc brakes seen in the '08 Escape with drums in the '09? Though I can't speak to the as of yet unseen driving dynamics, it sounds to me that Ford is "improving" the Escape like they "improved" the Focus.

The rear disks in a car of that stature are not really that needed, but it is a downgrade. The driving dynamics overall are improved because of the antiroll bar in the rear, it also has a 6 speed automatic, so you have to get the money from somewhere else.

I don't know if I've been accused of being a US fanboy, but I probably will now.

If you're leasing the VW and the leas is up, I can understand why it's time to get something else. It's not environmentally friendly to replace it, but it's certainly financially friendly to replace it, rather than take the depreciation hit.

If you want to "look" environmentally friendly, the Escape Hybrid is a good way to go. Better overall MPG than most econo cars and good space. As cx7lover explained, the lack of rear discs just isn't a big deal.

I think the Malibu is a great choice. I prefer driving sedans to SUV/CUV type vehicles anyway. Plenty of room (not as much as the monster you drive now) for two adults, two kids, and stuff. Great mpg on the four cylinder. Not bad on the V6. Not sure if AWD is available. Never been a problem for me (snows a lot around here), but I don't know about you.

If you're looking at the Saab and Nissan mentioned above, I'd take a serious look at the Edge. It drives very nice and just feels good. Similar mpg to the others too.

In answer to JRiz, my Saab sportcombi gets 24-28 mpg. You may have only looked up the V6 while the 2.0 Turbo is pretty fast and sport with good gas mileage (official 19 mpg city / 29 mpg highway/ 24 combined). For a car with massive amounts of torque, and a 65 cu. ft wagon, that's pretty good.

Assuming the Touareg is leased -- why else would she want to give up a 2005???! -- I would recommend a VW Tiguan. Alternatively, she could probably manage with a front wheel drive car and some good snow tires. Jetta Wagon comes to mind. Or Passat Wagon.

Leasing another car from VW would probably have its own benefits, such as waved fees, etc.

I would say a Subaru Forester or Outback. They're very fuel efficient, naturally, so she won't have to endure the initial cost of owning a hybrid, and it's awd so it will definitely handle great. And they both definitely can hold stuff

Subaru's are not that fuel fuel efficient, they either get good MPG and drive like pigs with their poorly matched 4 speed automatics, or get ok MPG with a manual, and so-so with a turbo, especially if you're actually using all of the horses.

Don't get me wrong, I like the outgoing generation of the Ford Escape. I also like a lot of the changes with the new Escape, such as the improved HVAC and better tranny. But a 60-0 stopping distance of 154 feet is terrible, especially since this is to be a family car. I don't know how much shorter the stopping distance would have been if it had disc brakes, but if it makes any difference, that's a worthy expense.

Don't equivocate on something as fundamental as brakes.

I wish there was an edit button so I didn't have to double post, but I went and looked up the stopping distance for the 2008 Mariner Hybrid. It stopped from 60-0 in 138 feet.

www.edmunds.com/new/2008/mercury/marinerhybrid/100849331/roadtestarticle.html&articleId=120071