Before taking it to a scrap yard, you may see if there are any local or state non-profits that would accept it. In Wisconsin, we have a non-profit called "Rawhide Ranch" that is a program for at-risk teens. They take your old junker and teach street kids how to fix cars by fixing up the car you donate. Then the ranch sells it. They keep the cash, which helps with overhead at the program, and they send you a receipt of sale which you can deduct from you taxes at the end of the year. So, I don't know if you have anything like that in Canada, or if your tax system works similarly, but it might be worth looking for.
As far as small, reliable, gas-friendly used vehicles, my recommendations would be:
Honda Civic Honda Accord (4 cyl) Nissan Sentra Toyota Celica Toyota Corolla Chevy Prizm (same car as the Corolla, rebadged, lower residual value) Infiniti G20
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As far as small, reliable, gas-friendly used vehicles, my recommendations would be:
Honda Civic
Honda Accord (4 cyl)
Nissan Sentra
Toyota Celica
Toyota Corolla
Chevy Prizm (same car as the Corolla, rebadged, lower residual value)
Infiniti G20
Good luck! :)