Chevrolet Cobalt. Same chassis and drivetrain as the HHR in a sedan body style. Can be towed 4 down without modification or mileage limitation and can be purchased for about 13k new from almost any dealer.
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Honda 600 Sedan or Coupe (two cylinder, air cooled, 4 on the dash, 40mpg+)
or an original Mini-Cooper (I like the S version) which is smaller than BMW's current version. If you were serious about the "smallest"
Baja-tested '08 2-slide 36' Alpine: The Ultimate DIY'er Project