5. Fiat Panda

Overview:

• Bodystyle:Five-door hatchback
• Engine:1.2-litre four-cylinder
• Fuel type:Petrol
• Transmission:5-speed manual

What is it?

The Panda is Fiat's entry-level model that replaced the long-lived Seicento and, in the countries where it was still on sale, the even more ancient original Panda. That original was designed to be simple, honest, reliable and practical transportation and this car replicates those ideals in a thoroughly modern package. The result is a five-door city car with huge amounts of space, small but potent engines, cheeky looks and real 'character'. The Panda is the kind of car that Fiat has always excelled in and the current car is no exception - we're not the only ones to think so either as it's won the acclaimed title of European Car of the Year 2004.

Where does it fit?

In the Fiat range it sits under the smart-looking but outclassed Punto supermini. It's the entry-level car, but if you're considering a Punto-sized car then you'd be as well looking at the Panda too as despite its compact dimensions it's able to offer a great deal of (versatile) interior space. Like many of current crop of small cars the designers have managed to liberate quite extraordinary amounts of leg and headroom from the cabin, making it a practical machine for everybody from young singles to families looking for an inexpensive and enjoyable compact car. Obvious rivals include the far less practical three-door Ford Ka and VW Lupo/Seat Arosa twins and the five-door Daewoo Matiz.

Is it for you?

Really the Panda is intended for everybody. As such it covers all bases extremely well, it's spacious and practical enough for families young and old, economical, inexpensive, well equipped and even has a cheeky charm that'll win over just about anybody who drives it. With a high driving position, folding and sliding rear seats it should accommodate whatever 'lifestyle' category you fall into - be it single young surfer or babysitting grandparent. It's fun to drive too - even with the smallest engines.

What does it do well?

It's unusual to find such a practical machine that's also so much fun to drive. The dash-mounted gearshift, just one of a number of MPV-inspired details, shifts precisely and the steering is sharp and offers lots of feel too. The 1.2-litre petrol engine will deliver fantastic consumption yet feels quick - despite rather modest performance figures. The interior offers great space for four passengers, the suspension smoothing out the worst our roads can throw at it without losing agility and refinement is good too - even at motorway speeds. Decent equipment levels and a funky instrument pod top-off an enticing package.

What doesn't it do well?

It's not all good news inside. The interior build is patchy in places and some of the plastics lack the quality look and feel of the competition. Features like the sliding rear seat are a cost option, and even low-cost city cars should offer a CD player as standard these days. The rear seat is only really suitable for two passengers as the cabin is narrow, a third rear belt can be fitted as an option should it be needed. Base models do without ABS and the split fold rear seat. Roof bars are also an option on the cheapest models and are a must for its appearance - even if you're never going to use them the Panda looks naked without them.

What's it like to live with?

We're convinced that the Panda is one of the best cars of its type. It's practical, yet it has a charm that belies its underlying sensibility. It's hugely fun to drive, the both the 1.1-litre and 1.2-litre engines having plenty of urgency and excellent economy. The turbodiesel will offer even more, so with any engine you're unlikely to feel short-changed. Try to avoid the entry-level specification models though - a step up the model range is cheaper than picking individual options that make the Panda that little bit more appealing. A hugely capable drive that's not out of its depth out of town the Panda is a rare thing - a city car that's refined and able on the motorways. Fiat dealer service has long been criticised as poor, and the Italian firm's cars haven't always faired particularly well in reliability surveys, but as always we're promised improvements?

Would we buy it?

Absolutely. Despite our reservations about Fiat's service network and its as yet unproven reliability the Panda is a hugely tempting proposition. It offers an exceptionally mature feel at the wheel, feeling far bigger than it is with ride quality and handling that would embarrass much more expensive and larger cars. Despite this it's fun, the engines are capable, the gearshift snappy and the steering extremely precise. The high driving position gives it good visibility and space all-round is good. It's inexpensive and economical too, making it a very desirable purchase indeed.