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2 totally different cars IMHO.
My wife's daily driver is an 06 Jetta with the 2.5 5 speed, so it's a very similar platform to the new Rabbit, although the 08's did get a HP bump. Ny daily driver is an 07 Fit Sport 5 speed.
Fit pros: Gas mileage is ridiculous (in a good way), handling is great, car is very easy to drive, nice interior, loads of versatility.
Fit cons: Could use more power, but in fairness, it is not designed to be a fast car. I certainly didn't buy one with the feeling it would be a rocket. I find it perfectly adequate and with the handling it does have, it's also very fun.
Jetta pros (assume they would be similar to the Rabbit): Pretty good power from the 2.5, great interior, very comfortable on long trips, everything is built "heavy", very safe car, feels planted to the road.
Jetta cons: mileage isn't as good as the Fit (although it isn't poor), quite a heavy clutch and not as "easy" to drive as the Fit.
Both cars have been extremely reliable thusfar, with my Fit needing a rad hose leak fixed after about a week of having it and the Jetta not needing any repairs since new.
Around town I'd lean towards the Fit. If it's being used on the highway more or for longer trips, I'd go with the VW.
Good luck!
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