I have a Honda civic. It is just barely big enough for two people + two dogs. It _might_ do for one kid+ one dog, but no way is it big enough for two kids and a (large, active) dog in the back seat. The new Accords are gorgeous and large and comfy (at least the souped up version my dad has) but they are pricier and have worse mileage.
I think it really depends on what you are doing with it. If it is to be a commuting car that needs to occasionally have you all stuffed into it then I would go for mileage and live with a car that is slightly too small. If you will both be commuting either extremely short distances or by public transit (which I am guessing/hoping is the case), then I would go for a Subaru Forester/Honda CRV/Toyota ??? (forgot the name of their small SUV). These get reasonable (not great) mileage, and can haul a ridiculous amount of volume while still being parallel-park-able and the like. I have a Subaru Forester that is 9+ years old and it is a dream. The amount it has saved us in being able to haul stuff for small moves and furniture purchases has been really worth it. I hate my Civic, which has had minor maintenance issues from day 1.
I've never bought a used car because every time I try to I find that the amount saved buying used isn't worth the risks to me. YMMV. Also, I have only bought a car by myself once, and it was a really stressful experience. Unless you buy via newspaper ads, you are going to encounter crazy sales people and insane pitches. It takes a certain brand of stubbornness to manage, which I don't really have.
I think it really depends on what you are doing with it. If it is to be a commuting car that needs to occasionally have you all stuffed into it then I would go for mileage and live with a car that is slightly too small. If you will both be commuting either extremely short distances or by public transit (which I am guessing/hoping is the case), then I would go for a Subaru Forester/Honda CRV/Toyota ??? (forgot the name of their small SUV). These get reasonable (not great) mileage, and can haul a ridiculous amount of volume while still being parallel-park-able and the like. I have a Subaru Forester that is 9+ years old and it is a dream. The amount it has saved us in being able to haul stuff for small moves and furniture purchases has been really worth it. I hate my Civic, which has had minor maintenance issues from day 1.
I've never bought a used car because every time I try to I find that the amount saved buying used isn't worth the risks to me. YMMV. Also, I have only bought a car by myself once, and it was a really stressful experience. Unless you buy via newspaper ads, you are going to encounter crazy sales people and insane pitches. It takes a certain brand of stubbornness to manage, which I don't really have.
Good luck!