Well, $400 more for a Fit, which has more equipment and will most likely have a much better resale. I drove a rental of the last generation Aveo and it was ok, but not as nice a ride as a Yaris or a Fit. The space behind the rear seats was a major issue for me.
As for list prices, what you see on the door of a Yaris or Fit is what you pay. I would wager that a cash customer could do much better than the MSRP on an Aveo.
The engine is in fact all new for the Aveo, not just the head and is sourced from the Opel Corsa. The old engine had its roots in an ancient Holden design. It was a rough, high friction thing which was also notorious for premature breakage of the timing belt. There were also issues of mismatched pistons (leading to engine failure) and PCM failures. Both were due to poor quality control at the Daewoo Pyup'yong factory in In'cheon, Korea.
Many publications have voted the Aveo one of America's then worst cars.
Here is the Forbes list:
1: Chrysler Sebring
2: Dodge Nitro
3: Jeep Liberty
4: Dodge Caliber R/T AWD
5: Dodge Magnum
6: Ford Crown Victoria
7: Chevrolet Aveo
8: Nissan Quest
9: Hyundai Entourage
10: Pontiac Grand Prix
The Aveo has the honour to be on Forbes' list for two years running. Same for the Truth About Cars, too.