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Skoda Oct. 2.0 TDI Ambiente

There's no doubt that the Golf makes a fine family hatchback, yet it has one major drawback: its price. But if you cannot quite stretch to the new Volkswagen, there is an alternative - and that's where Skoda's Octavia comes in.

With all the benefits of VW's latest technology, the Octavia is one of the best-value new cars around. The 2.0-litre TDI unit offers the perfect combination of performance and economy. There's no doubt the 1.9 will still be popular, as it's cheaper to buy - but the 2.0 TDI is undoubtedly the pick of the Octavia range.

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There's no doubt that the Golf makes a fine family hatchback, yet it has one major drawback: its price. But if you cannot quite stretch to the new Volkswagen, there is an alternative - and that's where Skoda's Octavia comes in.

Based on exactly the same chassis as the Golf, it features a more practical body along with a cut-down price. It even has the same engine range, including the excellent new 2.0-litre TDI oil-burner - but is it as good as its more expensive VW cousin?

Although the basic 1.9 TDI offers cheaper entry into diesel Octavia ownership, it's the 2.0 which is the more advanced unit. Noise levels may sound similar to those of the existing motor when you first start it up, but once on the move the advantages of the newer powerplant are obvious.

A clatter from the engine still makes its way into the cabin, yet it is a big improvement over the 1.9 which has proved so popular in VW Group models over the past five years, and a match for the impressive 2.0 diesel Golf.

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The reason for this long-term success is the superb performance and economy blend - and the 2.0 has inherited similar benefits. The Octavia TDI driven here gives plenty of punch, and with 140bhp and 320Nm of torque, it gets from 0-62mph in 9.6 seconds.

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In fact, the TDI feels far quicker than the figures suggest, with plenty of in-gear thrust to provide seemingly effortless acceleration. Unlike its 1.9 TDI stablemate, the more expensive model comes with a slick six-speed transmission, while an excellent DSG clutchless manual box is also available.

Despite the impressive performance, the Octavia sips fuel like it's using the last tank of diesel on the planet. The combined consumption is 47.9mpg, but drivers who cover most of their miles on the motorway will probably better that figure. Low emissions of 159g/km place the diesel hatchback into the 17 per cent tax bracket, again helping to keep running costs to a minimum.

Our test car came in five-door Ambiente spec, making it the cheapest 2.0-litre TDI Octavia in the line-up. The trouble is, with steel wheels and thoroughly conservative styling, the Skoda already looks dated - which will be a turn-off for many potential customers.

Inside, the entry-level model is better equipped, and gets a six-CD changer, climate control and a trip computer, as well as a huge 528-litre boot.

At £15,300, the 2.0 TDI Ambiente costs £1,500 more than the equivalent 1.9, but is it worth the extra cash? If you value performance, then the answer is yes. Yet if economy is your priority and you can sacrifice some refinement, the 1.9 TDI could still fulfil your needs.

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