Fiat’s popular Panda range has won much praise for its chic styling and fun image in the budget car small hatchback sector and is likely to win some more new friends now thanks to the introduction of a 1.3-litre multi-jet turbo-diesel engine. With 70 bhp on tap, this model becomes the most powerful and the quickest Panda in the range, yet it also offers the lowest fuel consumption – 65.7 mpg on the combined cycle. Priced at £7,895, this model will be especially appealing to those looking to stretch their motoring pound just that little bit further, without there being any need to sacrifice any driving pleasures.

This Panda proves to be extremely nippy, picking up acceleration very well in the mid-range where most diesels offer the most torque, and it’s also remarkably quiet in operation too.

The Panda’s overall design is quite pleasing, and with its big headlamps short wheelbase and vertical tailgate, could even be said to look a little funky. The car looks best in darker colours – my test model was primrose yellow with powder blue seats and tended to make me feel a little queasy.

But out on the road, the car performed impressively, with neat “on a sixpence” handling, pleasant steering feel, a good quality ride apart from really rough road surfaces where the short wheelbase tended to make it just a little jittery. There’s a fairly upright driving position with good visibility, the instruments and switchgear are clear and well placed, and the centre console which also includes a short stubby gear lever, means that everything is very user friendly and handily placed.

There is a surprising amount of space in the back both in terms of head shoulder and leg-space, and it can certainly be described as a full four-seater.

Like most small hatchbacks, this Fiat has limited boot space if you are using the rear seat, but it’s certainly adequate for shopping trips. The rear seat does fold down, though it doesn’t split fold which was a disappointment. Even so it boosts space quite considerably for awkward loads.

Standard equipment on this model is quite good, includes a single slot CD player, electric front windows and remote locking.

Anyone looking for a budget priced car with low running costs would certainly have to put this Panda on its short list. It may be similarly priced and similarly equipped to some of its rivals, but it certainly offers a more perky and more agile driving experience, providing a little more of the fun factor.