Car of the Year 2004 - City car

Winner
Fiat Panda 1.2 Dynamic
£6895

A change of name this year for our entry-level category and a change of winner in the Fiat Panda, an all-new iteration of a famous name which crams huge interior space into a diminutive but stylish body.

The high roofline offers excellent headroom front and rear, while there’s also enough legroom for a quartet of six-footers to get comfortable.

The occupants are treated to a fine ride that soaks up all of the usual city obstacle courses with aplomb. The Panda also displays a maturity on faster roads that sets it apart from its rivals, while it turns crisply and fills its driver with confidence on twisty roads.

We rate the 1.2 60bhp engine above its 1.1 sibling for its extra punch and refinement, even if you do pay more for it initially. However, there’s the happy bonus that the larger engine returns even better combined fuel consumption, clocking up 50.4mpg.

Inside, the 206-litre boot easily outdoes the Seat Arosa’s and Daihatsu Charade’s - and the rear seat can also be slid forward to liberate another 30 litres of space, making the Panda’s one of the largest boots in this class. Split/fold rear seats on our preferred Dynamic model aid practicality further.

The driver has not been forgotten, either, with an excellent driving position, a simple, logical dash and twin front airbags.

What really impresses us is the care Fiat has put into building a small car without compromise. This is the most complete city car we have driven.

Highly recommended
Seat Arosa 1.0 S
£6500
Daihatsu Charade 1.0 SL 5dr
£6995