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We are looking to buy a hatchback as a second car, we have $11,000 - $11,500 to spend. What would you suggest?

You are in a great price range and should be able to find a good car within your budget. The Suzuki Swift has been the most popular small hatch for some time now, and this money should be able to buy you the first of the new shape Swift (around 2005). A Toyota Corolla, Yaris, Echo or Vitz would also be good choices.