Fiat Panda

“Fiat has turned the corner in terms of quality, and the Panda represents huge value for money. That’s exactly what we’re looking for in this market sector.” Jeff Paterson

Nobody does small cars better than Fiat – which is why the Panda steps up to scoop the crown this year. And Auto Express has been a fan of the city car ever since it took top prize at our New Car Honours in 2004.

Back then, our judges loved its looks, road manners and practicality – and these are still strong attractions. The Panda is also cracking value, and isn’t plagued by the reliability issues which have afflicted some older stablemates.

The revamp of the dealer network is more than a quick makeover, because the brand is rebuilding its reputation – and the Panda is a vital piece of the jigsaw. Its showing in our annual Driver Power satisfaction survey, where it finished in a very respectable 41st place overall, is proof that the Italian marque is winning its battle to improve quality.

With healthy new sales, there’s plenty of choice and a wide array of engine variants, with a frugal Multijet diesel, 4x4 off-roader and, more recently, a hot hatch model catering for all tastes. The flow of fresh additions to the line-up ensures the Panda continues to be a fashionable city car, while its five-door layout, spacious cabin and surprising long-distance ability make it a versatile and desirable selection.

The Fiat was the unanimous choice among our experts, and Graham Smith from British Car Auctions summed up its appeal: “The Panda has stood the test of time, it’s serious value for money and there are loads about.”

Dynamic trim offers the best value, but make sure you get air-con, because it’s not standard. The torquey 1.3-litre Multijet commands a premium of around £350 over a 1.2-litre petrol model, and prices for the chunky 4x4 start at about £5,500 – that’ll get you a 2005 54-reg car. The Fiat 500 arrives in the summer, too, and you can expect the Panda to bask in the glory of its tiny twin. So if you’re looking for an affordable runaround, you need to go Italian.

Commended: Kia Picanto

2004 to present

The little Kia may have lost its crown this year, but it’s still a fantastic used offering. The only real drawback is limited availability, as you don’t see too many of the small city cars in the classifies ads, but if you can find a good second-hand example you’ll have a spacious, well equipped and reliable runabout for a very reasonable price. The firm’s recent initiative to offer a part-exchange allowance on Picantos should have swelled the numbers on used forecourts. Also, the brand has a revised approved used car scheme in the pipeline, which should provide extra reassurance on dealer-supplied models.

Commended: Toyota Aygo

2005 to present

Here’s a new face for the Used Car Honours! Making its debut this year, the Toyota was chosen by our judges over its Citroen C1 and Peugeot 107 rivals. Why? Well, the Aygo will be more expensive than the Gallic duo, but it’ll be worth more when you sell it – and as the oldest motors are only 18 months old, that’s a serious consideration.The downsides are comparatively few, but include its rarity – which pushes up its already high price – and the limited model line-up. These considerations aside, the Aygo proves to be a fun, practical and stylish city car which shouldn’t let you down.