Best city cars

Volkswagen up! hatchback

£7,995 - £11,305

The stylish Volkswagen up! replaces the VW Fox, offering lots of practicality and excellent value for money. Under the bonnet, the VW up! is powered by a 1.0-litre petrol engine that provides ample performance for owners undertaking mostly short journeys. Inside, it's capable of carrying up to four adults in relative comfort and is also beautifully made, using all of VW's manufacturing know-how. Both three and five door models are available.

Hyundai i10 micro-car

£8,345 - £9,745

A recent redesign means that the Hyundai i10 looks better than ever. It has always been affordable, cheap to run, fun to drive and very practical, but now it's stylish and well made too. For our money, there's no better city car around. The new Hyundai i10 represents a big step up in terms of quality and desirability, yet it remains great value for money. What's more, the revised model now comes with the company's triple care warranty, which ensures peace of mind by offering unlimited mileage cover, free car health checks and roadside assistance for five years. There's also a fuel efficient 'BLUE' model - the company's first car to dip below the 99g/km C02 barrier - making it free from road tax and the congestion charge in London. Don’t be fooled by the compact dimensions, the versatile interior means you really can transport a growing family and all that travels with it.

Fiat 500 hatchback

£9,960 - £16,060

With its classic styling, Fiat's 500 is seen by some as an expensive fashion accessory, but its compact bodywork and eager engines make it a great city car too. Entry-level 1.2 Pop models are basic – but even they come with an MP3-compatible stereo, power assisted steering and electric mirrors. Sport and Lounge models are more luxurious, and add hi-tech equipment like Bluetooth phone connectivity and air-conditioning. Running costs are low and all models are cheap to insure, which means the 500 is ideal for young drivers.

Kia Picanto hatchback

£7,795 - £12,295

The Kia Picanto shares underpinnings with the Hyundai i10, but boasts a more attractive body shape and gives buyers the choice of three and five-doors. Powered by either a 1.0 or 1.25-litre petrol engine the Picanto delivers up to 67mpg on longer journeys, but is also designed with the city in mind. The cabin offers plenty of visibility and the tight turning circle means the Picanto is well suited to maneuvering in tight spaces.

Peugeot 107 city car

£7,995 - £10,545

Like the Toyota Aygo and Citroen C1, which share the same mechanicals, the Peugeot 107 is first and foremost a car for affordable city driving. It's big enough for short runs on the motorway, but its compact dimensions, sharp steering and 1.0-litre three-cylinder petrol engine are perfect for darting through traffic and parking in small spaces. The basic Urban Lite version is sparsely equipped, though, and does without electronic stability control or central locking. We’d advise buying the more expensive Urban spec. Alloy wheels and air-conditioning are paid-for options, although if you negotiate hard there are plenty of offers to be had from dealers.

Citroën C1 hatchback

The Citroen C1 is a car with no pretence of luxury whatsoever. It's put together at a factory in Poland, alongside its near identical sister cars, the Peugeot 107 and Toyota Aygo. Inside, the C1 has a cabin fashioned from hard plastics and painted metal pillars, but it's well designed and feels carefully put together. Equipment levels are limited. Even the top VTR+ trim level demands that you pay extra for air-conditioning and alloy wheels, and all five-door C1s feature pop-out (rather than wind down) rear windows. However, it has some of the lowest fuel, insurance and tax costs on the market.

Toyota iQ city car

£10,815 - £13,985

It's not big but it is quite clever. Toyota's iQ city car is just three metres long but it can carry two adults and two small children - and is very well equipped. It's at its best around towns, where its compact size makes it easy to park.Running costs are low but if you intend to rely on the iQ as your only car, think carefully about the kind of trips you make. For example, you do have to choose between passenger space or luggage space – you can’t have both. What's more, the iQ feels a bit out of its depth in fast moving motorway traffic and it's pricey given its size.

Ford Ka hatchback

£8,725 - £12,225

The original Ford Ka was much loved for its cute looks, funky interior and entertaining handling, yet this second-generation model feels more straight-laced and less fun. It shares many of its mechanical parts with the Fiat 500: in fact, they’re built in the same factory. There are two engines, one petrol and one diesel, while a wide range of trim levels offers plenty of scope for personalisation – including some crazy looking stickers. Entry models aren’t very well equipped as standard, but flagship versions are luxurious.

Vauxhall Agila hatchback

£8,495 - £13,350

It's Vauxhall's cheapest model, but the Agila still looks good and is pretty good to drive too. Things start to fall apart slightly once you step into the cabin and notice that interior quality isn't quite as good as you'd normally expect from a Vauxhall. Don't expect hot-hatch performance either, the only engines on offer are 1.0-litre and a 1.2-litre petrol units both offering 0-62mph times of over 12.5 seconds.

Toyota Aygo city car

£8,535 - £10,990

The Toyota Aygo is fitted with a 1.0-litre petrol engine that is perfectly suited to city driving - returning up to 63mpg. The Aygo has light steering and is a doddle to park in tight spaces. There is enough room in the back for two adults and although small at 139-litres, the boot is big enough for a few shopping bags. With prices starting at around £8,500 the Aygo offers considerably better value for money when compared to the Toyota iQ.