BMW 318d SE

This is the new 318d, and it strengthens BMW's fight further against more mainstream rivals, such as the Ford Mondeo and Vauxhall Vectra. Powered by a detuned version of the 2.0-litre four-cylinder engine fitted to the impressive 320d, the newcomer scores well in terms of running costs.

It complies with Euro IV emissions regulations, which means the car falls into the lower 16 per cent company tax band, while a combined fuel economy figure of 50.4mpg will keep fleet managers and private buyers happy. In true BMW tradition, the 318d is satisfying to drive. It's not especially quick, with only 115bhp, but the handling is as fluent as we've come to expect from the 3-Series range over the years, while the five-speed gearbox is a pleasure to use.

Inside, the cramped cabin is beginning to show its age, while even in range-topping SE trim you have to dig deep into your pockets to build up the specification - our car had plain cloth seats and a very basic stereo, yet costs nearly ΂£1,000 more than the well equipped Ford Mondeo TDCi Ghia X.

However, in this market, badge image is far more important, and the 318d is a useful addition to the line-up which is bound to have a huge impact on fleet sales. As a private buy, it also makes a lot of sense, with some of the strongest predicted resale values in its class.