All too often you sacrifice style for practicality when choosing a family hatchback. Alfa Romeo maintains that you can have both and with the 147, it's hard to deny that assertion. Sleek, beautifully detailed and better built than ever, the jewel-like 147 looks decent value compared to German rivals.

Since the larger 156 was launched at the end of 1997, Alfa's understanding of how to screw together a decent quality car has come on leaps and bounds. This 147 takes this foundation and reinforces it further, with the current car featuring a built-in sense of occasion that's utterly absent from a Volkswagen Golf or even an Audi A3. Sit inside the 147 and the memories of Italianate driving positions that we grew up with in Alfasuds and Giuliettas are banished forever. Seat, pedals, steering wheel, gearstick and mirrors all appear to be positioned around an anthropomorphic figure of a human being rather than a gibbon (as was the case with the old 145). The rest of the interior has other such considerate touches too.

Prices start from just over £15,000 and a number of sparky engines are offered: entry-level 120bhp petrol (1.6) and diesel (1.9) units, plus 150bhp petrol (2.0) and diesel (1.9 16V) powerplants. All models get six airbags, climate control, tinted electric windows and mirrors, remote central locking, an alarm and a decent RDS radio/CD player with eight speakers. Plusher Turismo models add a leather-trimmed steering wheel and gear knob, while the top Lusso specification comes with steering wheel mounted audio controls, cruise control, alloy wheels, front foglamps and an adjustable front armrest with recess. Prices for the 147 range have always been a little above the family hatch norm but drop inside that cabin and you'll see where the money has been spent.

Whereas the first generation of 147s looked great on the inside but lacked functionality and quality of fitting, these later cars seem a generation on. Alfa Romeo has clearly observed what the premium German manufacturers have done with improving the look and feel of the controls and have followed suit. The stereo, ventilation and other systems are now easier to operate and feel better built than before. The Lusso models feel a good deal plusher than any comparably priced car in their class.

"The excuses for not putting an Alfa 147 on your premium hatch shopping list aren't readily apparent.."

The Alfa 147 is a relatively heavy hatch and fuel economy of the petrol engines isn't standout. The combined fuel figures of 34.4mpg for the 1.6-litre and 31.7 for the 2.0-litre petrol engines compare to 42.2 and 39.8mpg for, equivalent sized engines in a Ford Focus. If you are interested in shaving a few pounds off the annual fuel bill, the 1.9JTDm is definitely the engine to target, the 115bhp variants managing a fairly decent 48.7mpg and the beefy 150bhp 16v versions of this engine a creditable 47.9mpg. The inherent torque of the diesel engine helps here as it pulls very strongly from low revs without being asked to throw a lot of fuel through its injectors in order to get the car moving at a respectable rate.

Depreciation figures have improved with this generation of 147 and a three-door 1.9JTDm Turismo will hold onto 39 per cent of its value after three years, contributing to a 37.7 pence per mile running cost figure. Stack that up side by side with an entry level Audi A3 three-door diesel and the Audi's better residual value of 55 per cent helps it overcome its higher asking price to post a cheaper 34.5 pence per mile running cost. With both cars falling into insurance group 11, many buyers will see the added flair and excitement of the Alfa as being worth the incremental cost.

If your experience of the 147 is based on the original version rather than the facelifted car launched a few years back, you may be impressed at how far the design has progressed. Taking its cue from the marque's excitingly styled Brera, the headlamps are a good deal sharper, tapering to inboard points. These lamps feature triple lamp clusters and an all-new bumper houses tiny front foglamps and far more aggressive air intakes. The rather odd black rubbing strips that sat below the lights on the old car have been replaced, giving the latest 147 a far more chiselled look. Walk round to the rear of this Alfa and you'll spot a chromed strip at the bottom of the tailgate which should do a very good job of dissuading following drivers from high beaming you. The rear lights are a good deal larger than before, smeared across the tailgate and rear wing. A redesigned lower bumper assembly houses the number plate and the rear end of the car is nicely finished by a reprofiled tailgate that makes the Alfa badge significantly more prominent. It's tough to spot one bad angle.

The 147 may be nearing the end of its life but it remains a very good car that teeters on the brink of being something that not only Alfisti and auto bores will aspire to. With styling that is - to these eyes at least - the pick of the pack and a quality improvement programme that has elevated it to a position equal with the best of the German marques, the excuses for not putting an Alfa 147 on your premium hatch shopping list aren't readily apparent. Factor in a range of great diesel engines and increasingly resilient residual values and resistance looks futile.

TOP 5 147 DEALS

The results below show the top 147 deals on buyacar

	Alfa Romeo 147 1.6 TS Lusso 3dr Hatchback
	ETR	Mthly £294	Saving £2,429	Price £13,637
	Alfa Romeo 147 1.9 JTDm Turismo 5dr Hatchback
	ETR	Mthly £284	Saving £2,533	Price £14,021
	Alfa Romeo 147 1.9 JTDm 16V Lusso 5dr Hatchback
	ETR	Mthly £341	Saving £2,974	Price £15,929
	Alfa Romeo 147 1.9 JTDm Lusso 5dr Hatchback
	ETR	Mthly £320	Saving £2,753	Price £14,976
	Alfa Romeo 147 1.9 JTDm 16V Lusso 3dr Hatchback
	ETR	Mthly £333	Saving £2,882	Price £15,532

typical 13.08% APR

PCP finance quote over 48 months,  10,000 miles pa,  deposit of £1000