The idea of a Citycar with all the luxury of something much larger isn't new but it isn't that common either. Ford have executed the concept best, in the form of the refettled LuxuryKa featured here.

One of the first things you notice about the LuxuryKa, apart from that unique shape, is the slick, one-colour body. The Tupperware-effect body mouldings above the wheels that were the hallmark of the first Ka derivatives to hit these shores have been blended away under body coloured paint.

Priced at £9,195, the LuxuryKa costs around £2,000 more than the entry-level Ka variant on which it is based. In return, you get those body-coloured bumpers, 14-inch alloy wheels, air conditioning, the handy 'Quickclear' heated front windscreen and body coloured electric door mirrors. Remote central locking, a CD player and full 'Light Cyprus' coloured leather seats and trim are also part of the deal, giving a genuinely, well, luxury feel to the flagship Ka. The interior ambience is completed by pale steel dashboard trim that complements the light colours used about the cabin pretty effectively. The latest cars come with variable intermittent front windscreen wipe, a delayed final action wipe (which clears the screen of any drips once the front wipers have been used and switched off) and a reverse-gear rear wipe (which activates automatically if reverse gear is selected when the front wipers are in use).

That's on top of the standard Ka specification which runs to power steering, electric front windows, rear wash/wipe, tinted glass and a height adjustable driver's seat. Meanwhile, to ensure nobody makes off with your pride and joy, there are high security door locks and a Safeguard immobiliser. If all this kit isn't enough, you can also specify any of a selection of extras at an additional cost. These include a sliding sunroof, a CD autochanger and an incredibly useful satellite navigation system which allows you to bin that dog-eared A to Z for good. Recent changes include the addition of an automatic wash-wipe for the windscreen wipers and a wider Range of optional extras, such as the dealer-fit passenger airbag deactivation and parking distance sensors. There are also fresh colours and a smarter alloy wheel design.

"Small doesn't have to mean basic and cheerful needn't always equate to cheap."

Four out of every ten sub-Supermini citycars sold at present are Ford Ka's, a trend likely to continue since all the latest 1.3-litre Ka models swop the ancient Endura-E engine used since the 1996 launch for a far more modern 70bhp 1.3-litre 8-valve unit borrowed from the latest Fiesta. The performance figures for this unit aren't much different but, given that most of the engine's pulling power is available from just 1,900rpm, the driving experience certainly is. You'll notice that around town - this car's natural habitat of course - the need for constant gearchanging is much reduced. Usefully, fuel consumption is improved too. Expect to achieve 43.5mpg on the combined cycle.

Outside, the Ka looks much the same as ever, but Ford couldn't resist the temptation to tinker around with the interior. The redesigned instrument panel now houses an electric odometer and a low fuel warning light, while there's a rev counter included on LuxuryKa models. As before, Luxury spec sits above Ka, Ka Style and Ka Collection status but now just below newer 1.6-litre SportKa and StreetKa models. Otherwise, the recipe is pure Ka, the car which bestowed some much needed credibility on the Citycar sector. Customers come from so many walks of life - and so many other types of car: 4x4s, coupes, roadsters - you name it.

The Ka has taken small citycars into a new era - pure and simple. Before it arrived, models of this kind were boring to drive, terrifyingly unsafe and certainly not suitable for venturing outside the city limits. This model has changed all of that and blazed a path that others have subsequently had to follow. Take safety: in spite of its size, the Ka is as safe as any family car on the road today, meeting all current and future safety legislation for front and side impacts. It comes with a driver's airbag, seatbelt 'grabbers' and optional passenger airbags.

Though the excitement value of the 1.3-litre engine still isn't anything to write home about, a redeeming virtue is the Ka's superbly controlled ride and handling, which are strongly reminiscent of a much larger car. You'll forgive any shortcomings in the engine the first time you pitch the luxuryKa into a corner. Taking care not to slide off the leather seats, you'll be impressed with the sheer stickability of the little Ford. Many of the car's handling attributes are only found in sports models costing a great deal more, and the LuxuryKa is something you'll find yourself making excuses to drive. As with all modern Fords, the credit for this handling prowess can be attributed to one man, ex-rally driver Richard Parry-Jones, for he was responsible for engineering the driving fun back into class-leading cars like the Ka, Puma, Focus and Mondeo.

Packaging is another Ka strongpoint. You wouldn't believe the amount of oddment space and front legroom that the designers have crammed into the tiny cabin. The sheer size restrictions of a car 210mm shorter than the already compact Fiesta had to catch up with them somewhere however, and as you might imagine, the sacrifices have mainly been made around the two sculpted seats in the rear.

Still, you can't have everything. LuxuryKa buyers will, in any case, almost certainly have another, larger car in the family. Buyers who are prepared to fork out for the additional features that this particular variant possesses appreciate that small doesn't have to mean basic and cheerful needn't always equate to cheap. Ford's best-dressed baby certainly won't disappoint in that department. One word of warning, though. Get accustomed to this level of luxury and it might make shopping for your next big car an expensive experience!