Yeah the Element isnt too bad -- I like that one too -- would be a great beach cruiser since you can just hose down the floor board. I thought they were more expensive, but I suppose the prices have dropped substantially.
Still like the new CRV slightly more for long term drivability in a family car. If you are more of a sporty family, then the Element might be a good choice. They both have the same engine and come in 2 or 4 wheel drive. The CRV actually costs slightly more (about $1,500), but will get you another 2 mpg (assuming you pick automatic for both). I can vouch for the CRV, but havent ever had an Element. Make sure you watch out for the A/C compressors in all of Hondas larger vehicles... some have problems and this is expensive to replace 2 grand if out of warranty depending on what all fails. (See Consumer reports.) I beleive they have fixed this issue with 07 and newer vehicles.
See pricing and mpg details below for both:
CRV PRICING & MPG
$20,700 2WD LX
$21,900 4WD LX
$22,950 2WD EX
$24,150 4WD EX
$25,500 2WD EX-L
$26,700 4WD EX-L
166-hp, DOHC i-VTEC® 4-cylinder engine
Great fuel economy: 20/27/23 (city/highway/combined) (2WD).†
Ultra-Low-Emission Vehicle (ULEV) designation
2008 Honda CR-V - the Official Honda Web Site
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ELEMENT PRICING & MPG
$18,980 2WD LX
$20,380 4WD LX
$20,990 2WD EX
$22,390 4WD EX
$22,775 SC
166-hp, DOHC i-VTEC® 4-cylinder engine
5-Speed Automatic (City/Highway/Combined; 2WD) 20/25/22
Honda Element - Choose an Element Model