Fiat Panda

Fiat knows a lot about making decent small cars – the Italian firm's history is steeped in them. The Panda is another belter offering buyers lots of cabin space and a driving experience that's full of verve with light, precise steering and agile handling.

The range kicks off at £7,095 for the entry-level 1.1-litre Active model, which does 57mpg and emits 119g/km of CO2 – meaning an annual road tax bill of £35. Performance is peppier than the 0-60mph time of 15 seconds suggests too.

On the downside, while boot space is good, rear legroom is a bit tight and you won't get many gadgets to play with on the base Active model – air con isn't even an option. The ride is a little stiff too: a pay-off for the responsive handling. Still, in anyone's book, the Panda is a winner.