What do you think are the constituent parts of the ultimate family car for the average British family? After all, since most families have less than four children, an MPV isn't really necessary. What can't be compromised upon are the areas of safety, low running costs and practicality. Plenty of cars claim to offer these three virtues but none add to them the refinement, performance and ride quality of Peugeot's 308.

Our feeling when the car was first launched was that it didn't quite get the press it deserved. Yes, there were rival family hatchbacks that were sharper-looking, faster or more hi-tech. But when you added up all the points, none really shaded Peugeot's 307 replacement. But would it really be as good as all that in day-to-day family use? Often, after all, designs that look good on paper fall rather flat in everyday life. We determined to add one to our long term test fleet in order to find out.

First impressions when our car arrived were that it looked very similar to its predecessor. Which just goes to show how first impressions can be deceptive. It was only when I parked it next to a 307 in the office carpark that the changes became really evident. The 308 is 12mm lower, so has a slightly sportier stance, despite the improved interior space brought about by the increases in terms of both length (74mm) and width (85mm), it achieves a far more dynamic stance than the old car.

Get in and clunk the door shut and it feels more substantial than before too, with a standard of build quality that until recently, used to be the preserve of more prestigiously-badged cars. In the 308's case, this has come about courtesy of the extra weight in now carries - all 62kgs to be exact. The only downside to that is that it isn't the sprightliest performer on the block. Even the pokiest 2.0-litre HDi 136 diesel which we specified for our testcar, with up to 260lb ft of torque, can't crack the ten second barrier in the 0-60mph sprint.

"The impressive all-round package promised on paper is being delivered in reality.."

To be honest, though this might have bothered me on paper, it doesn't irk me at all in day-to-day use. Like the car itself, the engine does, after all, have more important virtues. For a start, it's very quiet. You slip into 6th gear and forget about it. Helping in this regard is the realisation after a few hundred miles that it's hard to think of a rival that offers a more absorbent ride.

I was brought up with Peugeots that were a hoot to drive on twisty roads, something that the marque rather lost with the 307. While the 308 can't be seen as the start of a whole new era in this regard, it's a significant step forward and is really rather satisfying on the back roads that make up my daily commute. I've the improved suspension to thank for this. However, there's a bit more roll than you'd find in a Focus or a Golf and a bit less steering feel too.

Having a family has put safety several notches further up my priority list with a car of this type, so the 308's 5 star NCAP safety rating was a must if I was going to assign the 308 over to my wife Katie to transport our three young children on the school run. For this kind of work, the cabin needs to be easy to clean and most of all practical.

One of the first things that I spotted about the interior of the 308 was the vast number of storage pockets, luggage hooks and nets, slide out trays and cubbyholes. If you are carrying anything from a diamond dripping engagement ring to a 1.5-litre bottle of coke, you'll find somewhere secure to stow it - although the trick may be remembering exactly which pocket you put it in. For chocoholics like me, the air-conditioned glove box keeps your Cadburys just as you would want to find it, rather than the sloppy mess that so often results.

Once you have finished losing things in the storage bins, you'll notice how spacious the rest of the car is. Not only is it one of the tallest vehicles in its sector (useful as it ensured that I could cultivate a wild hairstyle) but it has a seriously large windscreen adding to the ambiance of space and light.

Rear accommodation is impressive and the decor, while a little sombre, feels as though it comes from a car high up the automotive hierarchy. Good fuel economy, a comfortable driving position and plenty of space make this an ideal car for work around town or for longer trips. I could even see my family going on holiday in one, such is the comfort and available space.

In my view, the cabin now vies with that of the Fiat Bravo (yes, really) as arguably the nicest in the Family Hatchback sector - and yes, this observation includes that of the Volkswagen Golf (quality fitments but a rather dull overall feel). As with both Focus and Golf interiors, it's impressively spacious but the ambience is a lot more inviting, especially if you order the (non-opening) full-length panoramic glass roof. Soft-touch plastics are everywhere, attractively set off by slivers of faux aluminium. The rear of the 308 has more of a bulbous look to it, helping to maximise luggage space that runs to 430 litres and can be extended to 1,398 litres by folding the rear seats.

Overall then, it's a promising start to our tenure with our longterm 308. Other rivals may have the edge in certain areas but the impressive all-round package promised on paper is being delivered in reality.