I have a 1997 neon that was purchased new. It has been extremely dependable on long and short trips. I have driven this car cross-country with everything I own in it and it got great gas mileage. For the entire trip, loaded to the gills with a friend, and myself the miles per gallon ranged from 30-42 depending mainly on terrain (flat versus mountains; uphill versus downhill).
While in Florida, I found that this car ran very well in the heat and even with black interior, the air conditioning was very effective and quick. In Iowa, I also found that the heat was effective in winter however, it takes a long time to get going (there was a significant improvement in the time it took and some in performance when I switched to a good synthetic oil). This car also handles well in small amounts of snow but for feet of snow, obviously leave it at home. The largest problem is how light it is. It does like to slide and doesn't get the best traction in winter with stock tires. I have found that weighing it down helps a lot. I can take it to work 365 days a year in Iowa if I keep a few bags of sand in the back. I have only left it home once when we had a few feet of snow.
My neon is a stick shift and it is the best clutch I have ever driven. This car handles easily. It is perfect for those just learning to drive a stick shift or to drive at all. Although it handles easily, you can feel the frame flex a little on sharp turns and the suspension doesn't like bumps. This has been my only real complaint with this car. The back suspension is awful. The car rides a little rough but not too much worse than most cars of its class (it does ride better than the cavalier does but not as smooth as the civic). I do believe that if they put better shocks and some extra front end stabilization into the Neon. It would be the ultimate economy car.
In the two years I have had it, the warranty has been used twice. Once for a new battery, which was a fluke thing. The other time, there were some problems with the backup lights. It had to be replaced.
I wouldn't say I am ginger with this car, so twice to the dealership isn't bad in over two years. I do a combination of in city/highway driving daily and my gas mileage averages around 34 miles per gallon consistently.
As far as interior space, it is pretty good in front. Unlike other small economy cars, this one fits my brothers who are all over 6'1" in the front. I also like that the seats are a bit wider to accommodate the average to larger American. The back is more cramped but you can fit three average people for short rides but you will hear the suspension back there protesting.

Here's the update: Now, at just a hair under 40,000 miles, the head gasket needs replaced. Luckily, my boyfriend noticed something was wrong when he changed my oil and there was a burning smell. So, the dealership is going to do it and Chrysler says that I pay $100 and they'll pay the rest (expected to be around 600). Hopefully, that's all I will have to pay. I have seen horror stories online with "hidden costs". Another problem spot on my car is the constant corrosion of speaker wires and the battery connections. Minor irritations. However, this head gasket thing really is getting to me. Apparently this happens a lot with Neons. So, buyer beware!