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The Mazda 626 was completely redesigned for 1998. The exterior was restyled to echo the higher-end Mazda Millennia, giving the 626 a more upscale look. The new 626 was also longer and wider, resulting in more trunk space. Both the four cylinder and the V6 engines gained some horsepower. The 626 was also given a stiffer chassis, which made for better handling and a quieter ride.

The 1998 Mazda 626 was available in four trim levels: the base DX, the midrange LX and LX V6, and the well-equipped ES V6. The standard engine was a 2.0-liter, 125 horsepower four cylinder. The V6 was 2.5 liters and had 170 horsepower. Fuel economy was about 22/29 for the base engine and 20/26 for the V6.

Drivers like the 1998 Mazda 626 because it is economical, yet stylish and fun to drive with a comfortable, roomy interior. Complaints include poor resale value and many problems with the transmission.

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