Skoda Octavia 1.6 FSI Classic

Here's a brand that made its name producing good-value cars, and the current line-up has remained true to those principles.

So it should come as no surprise to find a Skoda in our penny-pinching line-up. Its Octavia provides space to rival a Ford Mondeo at similar prices to the blue oval’s Focus – and at 35.2 pence per mile, it’s the cheapest family model around.

The budget running costs start with its 1.6-litre FSI engine: a four-cylinder unit that produces 115bhp. Sprinting from 0-62mph takes the Octavia a respectable 11.2 seconds, and it’s comfortable at motorway cruising speeds. A tall sixth gear would improve refinement and economy, but the entry-level Skoda is still a great all-rounder.

You do have to make full use of the engine’s entire rev range to keep up with faster-moving traffic, especially if you’re carrying a full load of passengers. Still, thanks to the smooth FSI unit, that is no hardship. Claimed fuel consumption of 42.8mpg is impressive, while emissions of 158g/km place the Octavia in road tax band D, meaning an annual cost of £145.

So far, so good. With a list price of £12,250, though, our Skoda is sure to miss out on some useful kit, right?

Not necessarily, because even the entry-level Classic trim includes air-conditioning, front and side airbags and an MP3-compatible stereo as standard.

There’s also plenty of rear legroom, as well as a huge 560-litre boot with the seats in place. Fold them down, and luggage capacity rises to 1,350 litres. Then there’s the cabin. It is one of the classiest family car interiors this side of a Volkswagen Golf, making the Skoda a force to be reckoned with at any price.

Look closely and you will find evidence of cost-cutting, though. For example, Classic trim includes a plastic steering wheel that looks and feels cheap once you’ve laid eyes on a car with a leather rim. Power for the windows is restricted to the front only, and alloy wheels are a £360 optional extra. Likewise, electronic stability control adds another £365 to the bill, while useful rear parking sensors are £280.

Only ESP is a major sacrifice if money saving is your sole priority, but we think alloy wheels in particular would help to make the Octavia more attractive when the time comes to sell.

Put the options list to one side, though, and let’s concentrate on how the Skoda drives. The supple suspension takes the sting out of ruts and bumps while controlling body movements well. The standard tyres provide plenty of grip, helping to confirm that this is a comfortable car with nimble handling and reasonable performance.

Despite years of Volkswagen ownership, a string of excellent vehicles and a raft of awards to its name, you’ll still meet people who are prepared to have a joke at Skoda’s expense. But with running costs such as these, you’ll have the last laugh if you take the plunge.

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WHY: For the price of a family hatchback, Octavia serves up big car space and refinement.