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If you're strictly a city driver, then the Smart ForTwo could be the perfect choice. The unusual looks make it a head-turner, while its minuscule dimensions mean it's incredibly easy to park. It's as wide as it is long, so you can even leave it parked at right angles to the kerb!

The Volkswagen Golf Cabriolet is based on the standard hatchback, so the cabin is identical, which means excellent build quality, use of some very durable materials and plenty of practical storage cubbies. There's room for four adults inside, and from behind the wheel there is very little to tell the Cabriolet from the normal hatch, with only large bumps making the suspension feel unsettled. Front and rear LED lights are fitted as standard, which enhances the car's upmarket feel. The electric roof takes only 9.5 seconds to open, and it can do this at speeds of up to 18mph.

The Hyundai Santa Fe is one of the best value 4x4s around. Seven-seater versions cost an extra £750 and have a huge and versatile interior. Build quality is good, and from driver and passenger seats the car feels luxurious. The diesel engine performs well, and the Santa Fe is very economical for a car of its size. Hyundai's sound reliability record and long warranty make it a safe buy, as these help boost the car's value at resale time.

If you want a competent 4x4 but you are on a budget then don't miss the Suzuki Grand Vitara. The styling is handsome and it's good to drive, while the interior is well put together and as attractive as the exterior. Unlike many similarly sized 4x4s, the Grand Vitara possesses some genuine off-road ability, so it can cut it in the rough stuff. The downsides are that it lacks refinement and the petrol engines are very thirsty.

The Audi TT is a beautiful piece of design, and it drives very well, too. Available as a coupe or a convertible, Audi's small sports car is not the most practical around, but few machines match its blend of prestige, quality and comfort. Equipped with Audi's 2.0 TDI diesel engine, it's also relatively cheap to run. At the other end of the scale, the range-topping TT RS offers supercar-matching performance.

The Mitsubishi Outlander is the Japanese firm's contender in the compact 4x4 class. Competing with established rivals like Land Rover's Freelander, unusually, the Outlander benefits from a third row of seats. They’re small, but for those occasions you’ve a couple more children to carry they’re very useful.

The Renault Twingo has always been a roomy and likeable city car – it simply hasn’t had the looks to attract style-conscious buyers and its cabin has trailed on quality. Now Renault has gone some way to answering those criticisms with this updated version, which costs from £8,995 and goes on sale in January.

With its supercar good looks and competitive price, the Peugeot RCZ is a real head-turner. But the most satisfying things about this Audi TT rival are that it's fun to drive, comfortable and relatively cheap to run. Up front it feels spacious, and the boot is a reasonable size, so it's easy to live with day-to-day. It's a 2+2 coupé by name, but you can forget about using the back seats for anyone but small children as they’re tiny.

As fuel-prices are on the up, it's becoming harder to find genuine driving thrills on a budget. But Honda thinks it has the answer. The CR-Z is based on the Honda Insight, but it uses a 112bhp 1.5-litre  engine, rather than a 1.3-litre unit. The petrol engine is paired with a 10bhp electric motor, which gives the CR-Z a 0-62mph time of 9.9 seconds and top speed of 124mph.

The Audi A5 Coupe takes the underpinnings of a four-door A4 saloon and wraps them in a two-door body. Put the two side-by-side, though, and you’ll see the A5 is the much sportier looking car. It's lower and wider, and has less rear head and legroom than the A4, although the boot is nearly as big. Refreshed for 2011, the facelifted car borrows its styling cues from the latest A6 saloon, with new headlights and a revised grille.