I am a bit biased towards Honda Civic due to its looks.
Feature-wise, here it goes:
Price - obviously City
Suspension - Civic
Maintenance - City
Safety Features - Civic
Mileage - City (depends on the make too)
So, overall it depends on the reason for buying the car. If it is mainly focused towards regular usage, opt for City without doubts. If you are buying the car for pleasure and comfort, hit the roads with the Honda Civic..!!!
Honda recently discontinued the Civic in India, however you can buy a used Civic. You can visit our, used car section, where you can find good deals- http://www.cardekho.com/used-honda-civic+cars
Well, it is quite early to reach on any conclusion, whether the service network you visited provided you the correct information or not. We would suggest you to search for another service station, if it also gives you the similar advice then it would be better to repair your car. Their could be multiple reasons behind the noise coming out from your car's engine such as badly aligned camshift belt, faulty front brakes pad, and not so proper felt belt.