Time was when looking for an inexpensive new car wasn't a particularly savoury experience. Trawling through the detritus that was the worst that Eastern Europe or South Korea could foist upon us was unintentionally humorous but didn't bode well for a happy long term ownership experience. These days, things are thankfully a good deal different when shopping for a bargain basement car and models like Citroen's 1.1-litre C2 citycar are largely responsible.

With prices ranging from £8,795 to £9,295, it's maybe not quite as affordable as the Perodua Kelisas and Daihatsu Charades of this world but the C2 has a far more sophisticated look and feel to it that makes it a car that appeals as much more than lowest common denominator motoring. Sit inside a C2 and you're not constantly reminded of your penny-pinching ways. It feels cheeky, modern and agreeably sophisticated, particularly thanks to a recent minor facelift which has brought a more aggressive-looking front grille.

Despite the C2's cheeky good looks, don't go expecting a massive equipment list. You do, after all, only get what you pay for. This means making certain sacrifices. On the entry-level L-specification car, you'll do without a CD player, driver's seat height adjustment and electric windows and there aren't the clever sliding and folding rear seats that are fitted to SX models. The sporty Furio model weighs in at an additional £1,000 with the SX range-topper tacking another £200 on top. This model is fitted with air-conditioning which is a boon during a sticky summer in the city, electric door mirrors, velour upholstery, front fog lights and a little stowage tray in the dashboard.

Performance from the 1.1-litre is best described as modest, the 61bhp four-cylinder engine hauling the C2 to 60mph in 14.4 seconds and on to a rather frenetic top speed of 98mph. Fuel economy is, conversely, very good, the C2 averaging 37.1mpg around town, 57.6mpg on a long run with an overall combined fuel figure of 47.9mpg. It's worth calculating how many miles you drive per year and how many years you plan to own the car before plumping for a pricier diesel version. Chances are the C2 1.1 model will work out as the more economical all-round proposition. The downside of a small petrol engine is that it can feel a little weedy on long inclines and you may need to stir the stick a little to inject some urge.

"The C2 1.1-litre adopts many of its bigger brother's funkier styling touches and introduces a few of its own "

Although it shares its chassis, drivetrains and a number of body and interior parts with the C3, don't think of this car as merely a scaled down version of Citroen's spherical supermini. The styling marks a different direction with a C3-style bulbous nose allied to a far edgier, angular back end. Although to some it might look like the results of two design studies fused at the door pillars, it's certainly distinctive. The side windows adopt a staggered line while the rear haunches blister out in a purposeful fashion and the latest models can be identified by a clear section in the tail-light clusters.

Whichever trim level you opt for, 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. Interior materials quality has been improved with the introduction of the upmarket dashboard also found in the C3 featuring high-grade plastics and silver detailing. There's a wide range of trim choices 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, ABS brakes 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 are 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.