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Isn't the Element simply a CRV with a different body? I suppose if you're not going to do any highway driving and pretty much keep it in 1-2-3 gears only, it might work as you envision. It is easy to work on as far as oil, trans fluid, diff oil changes, brakes, etc. Easy to get at everything.
My average MPG over the last 120,000 miles is only 24-25. It will get 30MPG if you hyper-mile it.
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