Both of them use the same engine.
Mileage for both will be more or less the same. Rear seat space is more in Palio. Serviceablity and durablity for both will be same too as both are Fiat.
If you can stretch for the Punto, please do. Having owned a Palio S10 for over 5 years and the Punto now, I can tell you that so good is the Punto's chassis, steering and ride and handling, that it almost makes the Palio feel outdated! Punto is higher priced because it's a newer car with more features - even the Active variant gets some of the My Car features.
I am not sure how important resale value is to you but do note that Palio's normally tank in the used car market. It's too early to comment on the Punto's resale but at the moment it does look like it will hold onto it's values better then Palio.
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