In-car entertainment has assumed great importance in recent years, especially amongst budget buyers. These, after all, are the kind of people likely to stump up for an affordable runabout, then find that they can't play their MP3 music files whilst inside it. Disaster.

Hence the announcement of this car - the special edition Peugeot 207 m:play. As you might guess from the name, its headline feature is a radio / CD player with a built in MP3 connector located in the glovebox.

While the marketing team were at it, they reasoned that the type of younger buyer likely to be bothered about MP3 compatibility would also like to see features like air conditioning, sports seats, a leather steering wheel and special m:play carpet mats. So all this kit is included for a starting price beginning at £10,645 for the three-door or £600 more if you want the five-door bodystyle. As a guide, that's about £1,000 more than the equivalent S variant from the standard range. Buyers of this special edition get to choose between three colours: Flamenco Red, Lacerta and Neysha Blue.

Sitting inside the 207, you can immediately sense that this car is far removed from its 206 supermini predecessor in terms of its quality and elegance. Plus the 207, even at this fairly basic trim level, is head and shoulders above its equivalent 206 model in refinement. The elegant centre panel houses all the usual heating, ventilating and audio switches and 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 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.

"Even if you aren't one of the ipod generation, this special comes with a desirable package of features that could make it worth considering ."

The air-conditioning system that's available with the m:play is the more basic of the two on offer across the range, a dual zone manual set-up. Still, it does the job. One feature we especially liked is the 207's fragrance diffuser which is discreetly incorporated into the fascia panel and dispenses one of seven selectable fragrances to keep the interior of your car smelling sweetly. Each fragrance has been specially developed by a leading French perfume supplier.

Under the bonnet, there's an eight valve 1.4-litre petrol engine that enables the car to reach 62mph in 15.6 seconds on the way to a top speed of 104mph. At the pumps, this car should average 44.8mpg, while the CO2 emissions figure is 150g/km.

On the road is where the 207 really shows its mettle, especially in petrol form. Surprisingly, the 1.4 petrol is probably the best unit in the mainstream range. It revs easily and really sings when driven hard. The steering, ride and handling are superb and this car is surprisingly fun to drive especially on twisty, hilly roads.

Safety has been designed into the 207 and the car has earned a five star rating from the EuroNCAP tests. The 207's front end contains two impact absorption structures borrowed from the 407 that distribute impact energy more efficiently in the event of a collision. Sill reinforcements and tubular bars in the doors aid structural rigidity. Numerous airbags are installed in the 207 and the front two 'adaptive' airbags have a dual-generator function that can vary their pressures according to the severity of the impact. All 207s are fitted with two 3-point Isofix mountings in the rear outer seats, each of which can accommodate a child's Isofix Overall, this 207 looks the part, is well put together and is definitely a class above the 206. If you need convincing, just shut one of the doors. They close with a very reassuring 'thunk'. The same as you would experience with a Mercedes-Benz or BMW.

As for the m:play version, well even if you aren't one of the ipod generation, this special comes with a desirable package of features that could make it worth considering if the right dealer offer is on the table.