| Week at the wheel | Peugeot 207 Sport HDi |

Inside & Out:

Thanks to a nip and a tuck little over a year ago, the Peugeot 207 still looks pretty fresh. The long bonnet, with raised centre section and big, banana-style headlamps are quite dynamic and give the car a forward-poised stance. The five-spoke alloys on our test car complement the bodywork well, too.

The interior lets it down, though. For a car that has to battle it out with the mighty Ford Fiesta on the forecourts, the 207's cabin just doesn't have the kind of quality that's required to put it up there with the class leaders. The switchgear is really rather flimsy - especially the air conditioning and volume dials.

One saving grace is the optional panoramic glass roof (£410), which lets no end of light into the cabin and makes it feel bigger than it really is.

Engine & Transmission:

It may be an economical diesel version, but the 1.6-litre HDi engine has sufficient poke to render the 207 quite brisk. It only has 112hp, but there's 270Nm of torque and the kerb weight of 1,320kg isn't huge. The HDi lump is pure, old-fashioned turbodiesel - not much happens to begin with, but as soon as the turbo has spooled up it really makes a move.

The gearchange is reasonably precise, but it's not as crisp as the class best, while the clutch takes a bit of getting used to. The biting point is quite high - it's either on or off - so pulling away can be a jerky experience initially.

Ride & Handling:

Modern versions may not be quite as full of character as the firm's old school hatchbacks, but there's no doubt that Peugeot is still capable of building small cars with tidy handling. At sedate speeds the 207 seems a bit light and unresponsive, but throw it around a bit and the car responds well. The steering becomes weightier and there's plenty of communication from the chassis. The ride is reasonably firm but there's a decent balance between engaging handling and comfort.

Equipment, Economy & Value for Money:

Our test car retailed at £16,245, which is pricey, but it was packing some expensive options like a £695 satnav system and metallic paint at £400. At its basic price, the 207 looks like reasonable value for money - it's not the cheapest hatch around, but it's well priced against rivals from Ford and Vauxhall.

Running costs are impressively low, too. With 119g/km emissions, you're looking at only £30 a year for road tax and 61.3mpg is not to be sniffed at.

Overall:

It's not a class leader, but the Peugeot 207 has charm. This engine and trim level strikes just the right balance between entertainment, affordability and low running costs. The Pug has a way to go before it can see off the Fiesta (with which it's competitively priced) - most notably in terms of cabin quality. However, newer models like the RCZ and 3008 have improved tenfold in this area, so let's hope the 207 will follow suit.