Daihatsu Cuore

The city car's new trump card is its three-cylinder Dynamic Variable Valve Timing (DVVT) engine. With only 54bhp to play with, the Cuore is surprisingly lively around town, covering 0-60mph in 12.8 seconds - more than two seconds quicker than the outgoing model. Only on the open road does the 989cc unit feel underpowered, although an 87mph top speed is plenty for most people.

What's even more impressive is the 55.4mpg fuel consumption, along with ultra-green emissions of 124g/km - much less than most rivals'. The savings really mount up with Daihatsu's '333' customer care scheme: three years' free servicing up to 36,000 miles, three years' breakdown recovery and a three-year/unlimited mileage warranty. This is a great package, especially as this top spec SL is now £350 cheaper.

But in urban traffic, the heavy clutch and clumsy gearchange of the Cuore are not up to the job. Ratios have been changed to aid high-speed cruising, and motorway driving is now less of a strain, even though the slightest incline requires a downchange. Move to an A-road and the ultra-light steering, which is perfect in town, becomes less impressive, but body roll is kept to a minimum and the brakes bite cleanly and firmly.

This SL has more equipment than you might expect from a sub-£7,000 car, with four electric windows, electric mirrors, power-steering, central locking and an immobiliser all included. Safety kit is also impressive, with passenger airbags, side-impact protection and seatbelt pretensioners all fitted as standard. And while cheap, shiny plastic abounds inside, there's masses of headroom, even if space in the rear is limited.

So the Cuore has a lot to offer and would make a reasonable second car. But does it really represent good value for money? Unfortunately not. Perodua offers the same model, badged the Kelisa, for £5,950 - £1,045 less than the Cuore SL - although it lacks the '333' deal. As if that wasn't enough, the £6,995 Daihatsu is competing with the far superior Toyota Yaris. And while standard kit is better than on the base Toyota, the Cuore is dynamically outclassed.