Wasted,
I used to sell cars, new and used, to families looking for a good car for their teen.
I recommend the '97-'00 Saturn SL1 or SL2 (no teenager needs a new car). It may be a compact, but it has serveral advantages:
1. a high survivability in wrecks (check out the IIHS web site for accident statistics),
2. one of the lowest insurance rates due to the high survivability
3. dent resistant panels and great 5mph bumpers (the rear bumper at 5mph results in NO damage to your car -- the other car...). For a teenager, this is a definite plus.
4. Incredible gas mileage. Naturally the 5-speed does better than the automatic, but even the automatic gets 25 or greater in CITY driving, 34-36 for the highway (which she shouldn't have to worry about for a while, but will help if she uses it in college as well).
5. high resale value if/when you decide to sell/trade it on another car.
6. not underpowered, but not a hotrod. It'll pass things on the highway just fine.
7. If it has ABS on it, the traction control will come in handy on wet and icy roads. If you are one who hates ABS, you can actually get a Saturn without it.
8. Whether you change the fluids or you teach her to do it, changing the oil filter, tranny filter fluids, etc. is easier than most cars. It has a timing chain instead of a belt, so you have one fewer expensive maintenance replacements.
9. [b]And the thing that might matter most to her -- the things are cute.[/b]