14 Nov 08
2. Fiat 500
It's the most fashionable and desirable city car right now and set to remain so for a long while yet. Only the larger (and more expensive) Mini matches its retro charm, yet its engines and technology are up-to-the-minute in their engineering, as is its five-star crash protection. It's even reasonably practical, with a well laid-out interior and usable boot.
Best to keep it simple, and for our money, the entry-level 1.2 Pop is all the 500 you need. It'll return 55.4mpg, is taxed in Band B and will still be worth well over half its original new prices in three years' time.
If you're less concerned about street cred, don't forget Fiat's other tiddler: the plain-Jane Panda. Overlooked since the launch of the 500, this useful little car can be found at bargain prices. We've seen brand-new ones advertised for less than £5,000.
Cars for Sale: Fiat 500
Cars for Sale: Fiat Panda
3. Ford Ka
We're extremely impressed by the all-new Ka, which goes on sale in the UK early next year. It's not quite as stylish-looking as the Fiat 500 (with which it shares its underpinnings and engines), but it's a much sharper drive and it's cheaper to buy. However, bear in mind that it comes with less standard equipment than the 500; we'd suggest spending extra on the side, curtain and knee-protecting airbags, for a start.
As with the 500, we'd go for the 1.2-litre petrol model: it's a livelier drive, more refined, and economical nonetheless (55.4mpg and Band B tax). It should hold its value well, too, as small Fords are always popular second-hand.
Alternatively, Ford dealers still have some of the first-generation Kas on offer - at increasingly attractive prices in the run-up to the launch of the new one, with big discounts for those who haggle. We've seen as-new ones on offer for £4,500-£5,000. The much-loved old Ka might date back to the mid-1990s, but it's still fun to drive, easy to own and appealingly cute.
Cars for Sale: Ford Ka
