Review of the new Daihatsu Terios

Daihatsu's Terios makes a genuinely strong case for itself if you want an inexpensive small 4x4 but don't want the hassle of buying used. It isn't intended for serious off road duties but for small families in rural areas living active lives, it might be a clever alternative to a conventional compact car.

Just because you need a compact runabout, you don't have to buy a supermini or a family hatchback. Wouldn't it be nice if you could have something like one of those small Freelander-sized 4x4s? Well yes it would as long as the car came with affordable running costs and a sub-£15,000 price tag. If you think that's a big ask, then perhaps you need to be thinking about a Daihatsu Terios.

This rare combination of virtues isn't an easy one to perfect and the Japanese brand has had a couple of stabs at getting it right. The first generation version arrived here in 1997, but a noisy engine, a bouncy ride and a narrow cabin meant it wasn't universally well received, many choosing to find another grand or so for something like a Suzuki Grand Vitara. The MK2 Terios we're looking at here, announced in 2006, was however, a considerable improvement. Much bigger (though still on the small side), it was a far better steer. Finally, you could happily recommend it to budget buyers bored with ordinary runabouts.

You don't buy an affordable 4x4 and expect it to be much fun to drive - they simply aren't. We're not about to pretend that this Terios bucks the trend but the ride and flat cornering stance are both better than we were expecting. No, they're not up to the standards of conventional class-leading compact cars but many will happily trade that for this Daihatsu's high-set 4x4-like seating position and trendy go-anywhere looks. It certainly feels a lot more nimble than most compact SUVs, though both steering and gearbox feel a bit vague.

The penalty for that nimble handling is off road ability that's decidedly modest. At first glance, this car looks a more 'serious' 4x4 than more car-like rivals like Suzuki's SX4 or Fiat's Sedici but with a mere 17cm of ground clearance, the reality is that it isn't. Find a little more for Suzuki's Grand Vitara if that's what you want. Still, though the Terios isn't the ideal tool to take out into the wilds, wheel articulation is surprisingly good and although the little Daihatsu will adopt some rather dramatic angles of lean through a gnarly off road test course, it'll manage to keep its belly from scraping too badly.

"This Daihatsu would tick quite a few people's buying boxes. If only they knew about it.."

More likely usage will be from potential owners living up steep hills in rural areas or down unmade roads. For them, permanent four-wheel drive with a 50:50 front-to-rear torque-split and a locking centre differential that cuts in automatically or can be selected manually should be fine to keep the family from getting snowed in, even during the coldest snap. What you won't buy this car for is a lifestyle that involves regular motorway trips. They've rather oddly named this car the 'Be-Go' in Japan, but 'go' isn't really a feature of a 103bhp 1.5-litre petrol engine that isn't really at its best in these conditions. Since it's not got much pulling power, to make meaningful progress, you've constantly to extend it to the point where it becomes slightly raucous. Sixty is 12.4s away but top speed is limited to just 99mph.

This Terios shares many of its underpinning with the second generation Toyota RAV4 - which is in fact a pretty good recommendation. Unlike the first generation version, there's enough space inside to suit young families, even though at just over 4000mm long, it's about the same size as a Ford Fiesta. The cabin remains rather narrow for three across the back seat, but there's enough head and legroom for four tall adults to sit comfortably.

Luggage space is 380 litres with the rear seats in place and 778 with them folded (though they don't go completely flat). That's respectively a little more and a little less than you'd expect from a conventional supermini. The luggage bay is square and accessible via the side-hinged tailgate: ideal for those humping around small children's buggies, or for wheelchair users.

The interior is clean and unfussy, though still obviously built to a budget price. All the controls are simply laid out, there's a beautifully integrated stereo system and the cowled instrument panel is a very nice touch. The seats aren't that comfortable for long journeys but they do adjust for height, as does the steering wheel (though not for reach). All round visibility is good: ideal for urban users.

List prices suggest that you'll pay between £13,000 and £15,000 for your Terios, similar money to that being demanded by Suzuki for more affordable versions of its Grand Vitara - though these (like Suzuki's cruder but much cheaper Jimny model) only have three doors. You'll need to budget a couple of thousand more for a five-door Grand Vitara or a similar rival like Jeep's Patriot, though both will try and justify this premium with additional power that adds to your running costs but creates a more relaxed cruiser. Elsewhere, a Terios budget will buy you more car-like all-wheel drive five-door models like Suzuki's SX4 4Grip or Fiat's Sedici. Or indeed, in the ordinary 2WD world, a reasonably plush Fiesta: that puts the price into perspective.

With one 1.5-litre petrol engine and a single five-door bodystyle, the Terios range isn't too difficult to get a handle on. All variants feature reversing sensors, air conditioning, a single CD player, electric windows all round and central locking. You also get safety kit including anti lock brakes with electronic brakeforce distribution and twin front and side airbags. Less laudably, some important items don't even make it to the options list. These include curtain airbags and the kind of ESP stability control system that can get you out of trouble in slippery conditions or if you enter a corner too fast.

Unless you're loading the car to the gunwales and flogging the 1.5-litre engine, fuel economy is OK. This petrol engine will return 35.8mpg on the combined cycle and 29.1 around town though the 185g/km CO2 figure is pretty high for a compact car. These are the kind of running costs you'd expect from something like a 2.0-litre petrol Ford Mondeo. Insurance groupings range between 7 and 8 and depreciation figures of just over 40 per cent are fairly strong for a budget 4x4. One reason why is the impressive five year unlimited mileage warranty with five years of roadside assistance.

Much as we would like to be able to afford a fully specified Land Rover Freelander or Toyota RAV4, the real world often intervenes and caps the budget to more limited numbers. The Daihatsu Terios is a welcome reminder that if you have less than £15,000 to spend on a 4x4, you can still buy something with a measure of sophistication, decent engineering and no shortage of equipment.

For the money, there's no five-door rival with the same proper SUV feel and it's that budget pricing that also opens Terios ownership up to those who'd maybe never otherwise have considered a 4x4 at all. Though there are a few sacrifices to be made in terms of running costs and car-like dynamics, they're not too great and in return, you get that elevated seating position and the all-weather security of permanent four-wheel drive. Often overlooked, this Daihatsu would tick quite a few people's buying boxes. If only they knew about it.

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