You can't get much smaller than a subcompact car, but Dodge aimed to make its new Neon not only affordable and easy on fuel economy, but also safe, roomy, and fun to drive. In its first year, the 1995 Dodge Neon was offered as either a four-door sedan (in base, Highline, or Sport trims) or a two-door coupe (Highline and Sport trims). All models featured a 2.0-liter, 4-cylinder, 132-hp engine, but the Sports coupe offered it with a dual overhead cam, achieving 150-hp. This gave the Neon more horsepower than comparable cars in its class, like the Civic and Escort. A 5-speed manual transmission was standard, with a 3-speed optional.

The Sport coupe offered stylish features such as a rear spoiler and fog lights. Standard 14-inch alloy wheels, ABS brakes, and a firmer suspension meant it hugged the road nicely and handled nimbly when passing cars or taking curves, with less body roll. The 1995 was fun to drive and attractive to owners. Not only did its perky, rounded cab-forward (a Chrysler innovation) design make it easy on the eyes, but it offered a surprising amount of interior room for a subcompact. This meant more headroom and backseat legroom than other subcompacts. Highline and Sport models offered a rear backseat that folded down to provide more cargo room.

The 1995 Dodge Neon was very popular, attracting owners with its look, and keeping them happy with good engine power, great handling, comfortable seats and legroom, and great gas mileage (28/38 mpg). The Sport models were fast and fun. Some negative comments concerned the fact that the driver's seat did not go back far enough to accommodate tall people and the center console was uselessly small. Loud road noise, peeling paint, transmission, and other mechanical problems were also mentioned.