Crossword Genius

Bargain smallish car seen on Route 66? (7)

Ross

I believe the answer is:

compact

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'bargain' is the definition.
(I've seen this before)

I don't understand how the remainder of the clue works.

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(Other definitions for compact that I've seen before include "Make denser, agreement" , "bargain" , "Little" , "Dense; treaty" , "Small case for face-powder" .)

I've seen this clue in The Telegraph.
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