I loved the Saxo but realised that it was getting a bit dog eared so when Citroen announced its replacement in the form of the C2 I was straight on the phone badgering them for a press demonstrator. The styling of the VTR model that turned up took a little getting used to. One colleague suggested that it looked like a C3 being mounted by a Volkswagen Polo but I rather liked its unconventional lines. The skirts and spoilers were just subtle enough to avoid being accosted by Max Power readers and it even matched the trouser suit I had on. I could tell I was off on the right foot with this car.

Whichever C2 model you opt for in a trim range that runs from L through SX and Furio, to VTR and VTS, you'll find a car that maximises its use of available space very effectively. Despite being even shorter than a Saxo, it's easily able to seat four in comfort. Lessons have been learned from the reception given to the C3 interior and the C2 adopts many of the funkier styling touches such as the ventilation system and the bar rev counter and introduces a few of its own. The latest cars feature an upgraded dashboard, in high-grade plastic with silver detailing, which brings a pleasantly up-market feel to the cabin. There's a wide range of trim choices too, from sober monotones right up to the most extrovert two-tone designs. The steering adjusts for rake and reach in all versions while plusher trims also get a height adjustable seat. Few will have any cause for complaint given the amount of space in the front of the cabin as it feels no smaller than the C3, a car already renowned for its spaciousness. Like the C3, the C2 gets a can holder ahead of the gear lever as well as generously proportioned door bins that can accommodate a 500ml bottle of pop. Access to the rear isn't bad and Citroen have displayed admirable pragmatism in failing to pretend that the C2 is anything other than a four seater. So many small cars cram three belts in across the back and end up trussing occupants up like a leg of lamb but the two rear seats of the C2 are well sculpted and respectable in terms of knee and shoulder room although taller passengers may feel the sloping roof impinges on their coif. Opt for upspec models and the rear seats individually slide, recline, fold and tumble. This allows the owner to optimise luggage or passenger space by sliding the seats on runners but in order to fold the rear seats fully flat, the front ones need to be run a long way forward, precluding this possibility for long legged drivers and front passengers. All versions nevertheless get a tailgate that splits into two sections to ease loading in tight spots. With a number of safety features that include twin front and side airbags on all models and power assisted steering across the range, the C2 looks a decent buy. Sophisticated electronics functions like automatic wipers and headlamps, rear parking sensors and folding rear mirrors will also be available if you're prepared to dip into the wallet. Although the styling may divide opinion and the lack of three rear seats may strike it off the list of some, the C2 is a very welcome entrant into a market sector that has been populated with a lot of mediocrity.

Five engines - all borrowed from the C3 - are offered with the C2. A 61bhp 1.1-litre opens proceedings but the mid-range 75bhp 1.4-litre petrol also looks good value. For ultimate economy, the 1.4-litre HDi models will be the first port of call, whilst the VTS version marks the top of the range. The petrol version is a 125bhp car that sits above the 110bhp VTR but has a manual gearbox where the VTR uses a SensoDrive clutchless set-up. Both of these performance models are powered by Citroen's 1.6-litre 16v engine but buyers can also choose the VTS HDi that has a 1.6-litre HDi diesel making 110bhp. With 10bhp more than its Saxo predecessor and a whole bunch more standard equipment, the latest VTR model looks reasonable value. The petrol VTS is the quickest C2 with a 0-60mph sprint of 8.1s and a 126mph top speed. It emphasises this fact with an aggressive bodykit, bold 'VTS' badging and a set of 16" alloy wheels. The five-speed manual transmission from the C3 is the default choice on most of the engines but many C2s are also available with the SensoDrive gearbox that Citroen claim is 'rally style'. This four-speed sequential 'box boasts advanced electronics that attempt to learn different driving styles, whilst a flick of the lever allows the driver to make 'manual' changes without the need for a clutch pedal. Although the shift responses may disappoint Colin McRae, the gearbox is certainly game enough and will blip the throttle on downchanges when you're in the mood defaulting back to an automatic mode when you're not.

There aren't too many cars that I would put my own hand in my pocket for but a C2 is one of them. The lack of a rear pair of doors doesn't bother me too much and if pushed I'd go for a 1.4-litre diesel rather than the racy VTR or even the range-topping VTS.