What Car? Car of the Year 2006 - Best small family car

Skoda Octavia 1.6 FSI Ambiente
Price: £12,990
Target Price: £12,027

The competition at the top of this category has become even more intense over the past 12 months. Not only were there bold new models from Honda and Seat, but also improvements to the specification of the Toyota Corolla and Volkswagen Golf – both former winners of our overall Car of the Year award.

Still, none of these pretenders has been able to unseat our defending champion, the Skoda Octavia. For starters, the Octavia is more spacious and practical than any direct rival, and even puts many cars from the class above to shame. While cabin accommodation is plentiful, the boot is particularly cavernous and is fitted with an array of useful hooks.

Then there's the fit and finish in the cabin. Classy, soft-touch plastics are found on the dashboard and the tops of the doors, plus all the switchgear operates with a slick precision.

Our favourite trim is the Ambiente, which keeps the Octavia competitive on price, yet ahead of most of the competition in terms of equipment. Air-conditioning, front and rear electric windows, alloy wheels and a six-disc CD multichanger are all standard, as are front and side airbags.

The Octavia drives extremely well, too. It does a fine job of smothering imperfections in the road surface, yet offers good body control through corners. The steering is well weighted, and the handling pleasingly agile.

Our pick of the engine range is the 113bhp 1.6-litre petrol, which endows this big car with spirited performance. Refinement is also strong, while average fuel economy tops 40mpg. Finally, the Octavia holds its value well. After three years of typical ownership, you can expect to get back half your initial outlay.

Highly recommended
Ford Focus 1.6 Ti-VCT LX 5dr
Price: £13,645
Target Price: £12,232

Seat Leon 1.6 Stylance
Price: £12,995
Target Price: £12,130

Volkswagen Golf 1.6 FSI S 5dr
Price: £14,210
Target Price: £13,396