Subaru Impreza STI bargain

Based on the latest five-door hatch, the newcomer features a 297bhp turbocharged 2.5-litre version of the familiar boxer engine. Driving through an electronically controlled four-wheel drive system it allows the Impreza to rocket from standstill to 60mph in just 4.8 seconds.

The hi-tech transmission should also mean class-leading handling. Together with a lowered centre of gravity, wider track and stiffened suspension the Impreza has all the ingredients for an agile and composed chassis.

Externally the STI is distinguished by its rally car inspired body modifications. Most obvious are the bulging wheel arches that add 55mm to the Subaru's width. At the front there's a deeper front bumper, while chunky side skirts and quad exhaust pipes completes the aggressive new look.

Climb aboard and you'll find a cabin that's been given a luxurious makeover. Up front are body hugging Recaro seats which, like the rest of the chairs, are trimmed in leather and Alcantara. Climate control, xenon headlights an electronic stability prgramme also appear on the standard kit list.

When the STi arrives on UK soil in March 2008 it'll cost £24,995, significantly undercutting the outgoing model, and Mitsubishi's Evo X. Buyers wanting even more performance will have to wait until the end of the year when a 400bhp Prodrive tweaked version wil be unleashed.