If, like me, you were raised on a diet of Peugeot hot hatches that left the opposition trailing in their wakes, I can understand if you're a little underwhelmed by the 207 GT THP 150. No, really. If you're after a state of the art road rocket that'll keep supercars honest on a twisty lane, this isn't the car. The problem is that such hot hatches are now getting beyond the reach of most of us. Whilst I'd love a Golf R32, I don't have £24,000 knocking about. Even the £20,000 required for a Vauxhall Astra VXR or a decently specified Ford Focus ST is a stretch for many and in terms of real world motoring, the 207 GT THP 150 is an intriguing choice.

Priced at just £14,475 on the road, this 1.6-litre turbocharged Peugeot is not only affordable but makes sense in terms of ongoing running costs. For younger drivers who have graduated out of something like a Citroen C2 VTR, it's a logical next step and is a whole lot more insurable than, say, a Civic Type-R or a Renaultsport Clio 197. Although it isn't going to make the cover of evo magazine, it is, nevertheless, a respectably quick supermini and one that's very significant in its own way.

This is the first time that a petrol-engined Peugeot supermini has been fitted with a turbocharger since the legendary 205 T16, the car that carried the likes of Ari Vatanen to Group B rally victories in the Eighties. If you had to take a stab at who partnered Peugeot in the development of this engine, I think you'd need quite a few guesses before you came up with the name BMW, yet the Munich company have helped foot R&D costs for this powerplant, an engine which develops its 150bhp peak power output at a heady 5,800rpm, although the peak torque of 180lb/ft chimes in at an accessible 1,400rpm.

"The 207 GT THP 150 is but the first step in Peugeot's reclaiming of the performance hatch high ground. There's more to follow"

This translates into an ability to step off the line pretty smartly, the 207 GT THP 150 getting to 60mph in 8.4 seconds, which is quick, if not concussive. For more power, you'll need to find a few hundred pounds more for the 175bhp GTi model, which gets to sixty in 6.9s. In either of these variants, as long as you're a little more restrained with the right peg, you should see around 40mpg combined fuel consumption and emit around 170 grammes of carbon dioxide per kilometre.

The 207 GT THP 150 is an undeniably handsome piece of styling, the big front grille now starting to rest easier on the eye than when it was first introduced and the elegantly tapered rear profile gives the car a squat, dynamic stance on the road. This is helped in GT THP 150 guise by 17-inch alloy wheels which fill the wheel arches quite convincingly and when finished in white, it's a real head turner, looking like an emigre from a rally stage in the best Peugeot tradition.

In case you're wondering how the BMW and Peugeot tie up came about, it's basically a technology sharing arrangement. The Germans needed a new engine for the MINI range that was cleaner and more modern but they weren't over-endowed with a tradition of building great small engines. They turned to Peugeot, who gained access to a lot of BMW's high tech six-cylinder engine building prowess that they could adapt to four-cylinder designs. Much of the 207 range is to be based around a version of this powerplant, with the normally-aspirated 120bhp VVT version catering for the bulk of sales. This 150bhp turbo unit will sell to 'warm hatch' customers and there'll be an even hotter version knocking out around 200bhp earmarked for the 207 GTi.

Sitting inside the 207, you can immediately sense that this car is far removed from the old 206 in terms of its quality and elegance. Plus the 207 is head and shoulders above its equivalent 206 model in terms of refinement. The graceful centre panel houses all the usual heating, ventilating and audio switches while the binnacle behind the steering wheel features three circular dials, mirroring those usually seen on a motorcycle. The overall effect is very pleasing and gives the impression of a very up-market product. The front seats are very comfortable and appear to give good support. In the rear, as with most vehicles in this sector, the available space is rather limited to the size of the passenger and driver seated in the front. With the front seats fully extended backwards, the space in the back can be a bit restricted. One major plus point is that the A-pillars seem a little thinner than in the 307 and thus impede visibility far less.

Equipment levels? The GT THP 150 is well specified, although it is only offered as a three door model. Expect six airbags, anti lock brakes with brake assist and brakeforce distribution, electronic stability control, tyre pressure sensors, two ISOFIX three-point rear child seat mountings, electric windows, a Thatcham class 1 alarm with deadlocks, automatic static directional headlamps and wipers, dual zone climate control air conditioning, a panoramic "Cielo" glass roof with sunblind, a steering column adjustable for reach and rake, height adjustable driver and passenger seats and half leather trim. That's quite a list for under £15k. In addition, each vehicle is equipped with a fragrance diffuser which is discreetly incorporated into the fascia panel and dispenses one of seven selectable fragrances to keep the interior of your 207 smelling sweetly. Each fragrance has been specially developed by a leading French perfume supplier.

The Peugeot 207 GT THP 150 is a car that offers a lot of fun for not too much money. Target customers will appreciate a well taken corner and will enjoy a spirited cross country drive but won't want to be crippled with stinging running costs. Instead of just adding more horsepower to the hot hatch formula, Peugeot have come up with something that all round, makes a lot more day-to-day sense. Let's hope it finds favour.

TOP 2 207 DEALS

The results below show the top 207 deals on buyacar

	Peugeot 207 1.6 16V GT THP 150 3dr Hatchback
	ETR	Mthly £221	Saving £2,768	Price £12,202
	Peugeot 207 1.6 16V GT THP 150 5dr Hatchback
	ETR	Mthly £231	Saving £2,907	Price £12,663

typical 12.32% APR

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