Suzuki Swift Sky

Making the jump from second-hand to brand new has never been easier. The Suzuki Swift GLS Sky offers space, practicality and excellent miles per gallon for a landmark £4,995. And at half the price of a Ford Fiesta, its equipment levels are surprisingly generous, too. Huge value for money and Sky-high fuel economy make this a genuinely sound financial proposition.

What does five grand buy you these days? A service on a Ferrari, perhaps, a quarter of a Ford Mondeo, or maybe a pair of hospitality tickets at the British Grand Prix. But if that was your budget limit for a new car, you would be laughed out of the showroom. Until now...

Suzuki's Swift Sky has brought cheap motoring to a new level with an asking price of only £4,995 on the road. That's less than the first year's depreciation on a Vauxhall Omega!

So is the 10-year-old hatch selling itself short? The first thing you notice about the 1.0-litre GLS Sky is that it boasts far more equipment than a sub-£5,000 car has any right to have. Standard kit includes electric front windows and central locking, while buyers of the special edition will also enjoy excellent sports seats which offer great lateral support and a perfectly comfortable driving position.

The boxy appearance does not measure up to the more modern styling of rivals, but our car's £200 optional metallic paint does lift the Swift's image. And as it looks identical to the standard car - with no additional badges or design modifications - no one will need to know you're driving the cheapest new car in the country.

Inside there's plenty of space for passengers, and the decent-sized boot is let down only by a high load sill. Trim is in various shades of shiny grey, and the fit and finish seems a little haphazard, but against similarly priced rivals the Swift is competitive.

Power comes from a three-cylinder 993cc unit which whips the three-door Suzuki from standstill to a noisy 60mph in 16 seconds, and gives a maximum speed of 90mph - more than enough for a budget car. While performance figures are largely irrelevant for a model in this class, economy is paramount and the Sky's combined fuel consumption of 51mpg will keep running costs to an absolute minimum.

In the decade since the Swift first appeared, car dynamics have moved on a long way. The Suzuki is fine in town, but soft suspension means the slightest corner results in masses of body roll. The brakes are also spongy and a little unconvincing, but we have to remember the price - this is a motor for the cost of a year's rail ticket! Even so, the Suzuki comes with the peace of mind of a three-year, 60,000- mile warranty and breakdown cover. And because of the Sky's miserly asking price, the depreciation cost of owning a new car is dramatically cut. Having initially shelled out £4,995, buyers can still expect to recoup around £2,500 if they trade in the Suzuki when the warranty expires. That's three years' motoring for a mere £2,495.

The only competitor which comes close to the Swift's bargain-basement price is Perodua's entry-level Kelisa at £5,124. But that cannot match the space, practicality or warranty of the cheaper Sky, and in addition suffers from a low-rent image. Suzuki is offering the peace of mind of new car ownership at silly money. If you need to buy a new motor on a budget, look no further.