Skoda Octavia 1.4 SE

It wasn’t long ago that Skoda was trying to establish itself among the family car elite. Now, the roles are reversed and it has to fend off competition from upcoming brands.

The firm’s Octavia hatchback is in its second generation, and has done more than most to rebuild Skoda’s reputation. The latest model features new-look headlamps either side of its trademark grille, and while the jury is still out on the restyle, the car’s clean lines and smooth panels are neat and tidy.

Video: watch CarBuyer's video review of the Skoda Octavia

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Inside, you can see where Skoda’s quiet confidence comes from because the Octavia has one of the classiest interiors of any family model this side of a VW Golf. Its smart switchgear, high-quality plastics and no-frills layout are in stark contrast to the busy mixture of colours and textures you’ll find in the Cruze.

The Skoda is 28mm shorter than the Chevrolet, but superior packaging means there’s more rear legroom and a bigger boot. Fold the back seats and the Octavia has a maximum load capacity of 1,350 litres, and the luggage area is a much more practical shape than the restricted Chevrolet load area.

Only when it comes to kit does the Skoda begin to lose ground, because in SE trim it features fewer airbags and has air-con rather than climate control. There’s no sign of ESP stability control, either – it’s a £365 option. Rear parking sensors are also on the options list, and you get a can of tyre sealant in the boot, rather than a spare wheel – which costs £50 extra!

Start the 1.4-litre engine and this shortfall in equipment is soon forgotten, though – as the punchy turbocharged unit delivers superior performance. Whether it’s from a standing or rolling start, the Octavia leaves the Chevy trailing with its TSI’s responsive and linear power delivery.

Even though the Skoda engine has a smaller capacity, it revs more smoothly than the lethargic 1.8-litre unit of its opponent. Plus, as the gearbox offers six ratios, refinement at motorway speeds is better in the Octavia. On twisty routes, the softer suspension on the Skoda does a fine job of filtering out bumps, although its steering is heavier and less incisive than the sharper-handling Chevrolet.

There’s still plenty of grip, however, and the TSI’s greater torque – it delivers 200Nm to the Cruze’s 176Nm – makes for stronger performance. The gearshift is lighter and more positive, too. It’s just that there’s more body roll in the Octavia, and less fun to be had behind the wheel as a result.

Skodas are traditionally more about value for money and a painless ownership experience than entertaining dynamics, though. And residual value predictions of 36.3 per cent for the SE-spec Octavia are evidence of this – that figure eclipses the Cruze. Plus, the firm finished first in our Driver Power 2009 reliability and satisfaction survey – all of which makes the car a tempting proposition.

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WHY: Mixing VW’s excellent 1.4 TSI unit and Skoda’s famed practicality and reliability, the Octavia looks great value.