From £8,8968

Price, fuel economy and range, finance and depreciation

The Fiat Panda is no longer the cheap entry-level city car it once was. But it’s bought by a much wider spectrum of buyers than your average city car, so the Panda’s customer base is likely to be attracted by the great improvements in interior design, quality and space, plus the potential economy and running costs offered by the new engine range.

The Panda starts a 1.2 FIRE engine in Pop trim. Want to spend more? Opt for the range-topping Lounge specification.

TwinAir engine is fun to use and listen to, but in our experience falls a long way short of claimed mpg figures in real-world use

Pop-spec models get electric windows, central locking, body-coloured bumpers and four airbags. ESP, roof rails and black pastel paint come as optional extras. Easy-trim variants add remote central locking, air conditioning, roof rails and an upgraded stereo system. Lounge models get heated electric mirrors, front fog lights, 15-inch alloy wheels and body-coloured mirrors and door handles as standard.

As for economy, the TwinAir is the one to get the most headlines. Its figures of 67mpg and 99g/km are very attractive on paper, particularly when you throw in its congestion charge and VED exemptions. But, as we know from experience of this engine in the 500, those claimed figures are nigh-on impossible to achieve, although Fiat promises revisions are on the way to improve this.