If you thought that £8,000 wouldn't buy you a great deal of car, then you thought right. But look around carefully and you might just be surprised at what such a modest outlay could land you. A Toyota Yaris Ion for instance.

This is the entry-level version of Toyota's iconic supermini, now on offer in much improved second generation guise. In 'Ion' form, you get £600 lopped off the normal entry-level price and lose?. well not a lot.

For £7,995 (or £8,495 with five doors), the Ion specification, after all, includes features like Toyota's Easy Flat folding system for the rear seats. These divide 60:40 and can also be moved for and aft and reclined. It also provides electric door mirrors and front windows, an audio system with CD player, remote central locking, a multi-information display and concealed storage points beneath the front passenger seat and in the boot floor. In spite of its compact dimensions, Yaris comfortably accommodates five adults, with its innovative flat rear floor design, and has achieved the top five-star rating for occupant safety in Euro NCAP crash testing.

This entry level model comes with a brand new ultra-lightweight 1.0-litre three-cylinder petrol engine. Built in Japan, the 1.0-litre unit will appeal to buyers who are attracted by the city credentials of the Yaris. The 0 to 60mph sprint figure is a little irrelevant on this type of car but for the record, it is achieved in 15.7 seconds. A top speed of 96mph is accompanied with a CO2 emissions level of only 127g/km. Where the Yaris 1.0-litre really scores however, is with its miserly fuel consumption, returning 52.3mpg on the combined cycle. With keen fuel economy, low inertia and low emissions, it's a better choice than the diesel for the urban sprawl and crawl. Marry that to Toyota's claim that the Yaris has the tightest turning circle in the whole supermini sector and you have a very agile and wieldy city scoot.

If you owned an old MK1 Yaris previously, your first impressions with this MK2 car might be that Toyota have taken the old model and plugged it into a garage forecourt airline. It's bigger in every dimension and markedly more bulbous. It's also way better in terms of perceived quality. The double-sealed doors feel thicker and weightier and shut with a thunk rather than a clang. The rather unconventional fascia looks removed from the supermini norm, with a 3D effect on the main display. More conservative buyers may find it a bit Buck Rogers but it's certainly distinctive.

"It's a supermini you simply can't afford to ignore if you're shopping in this sector?."

There's only so much money that can be thrown at a car where margins are this tight and there are plenty of unlined cubbies and hard plastics on display. The seats seem rather insubstantial too, Toyota realising that big seats are the enemy of packaging a small car. They've tried to create a lightweight but comfortable seat. Lightweight buyers will probably find them OK, but tip the scales at sixteen stone and you'll probably grumble after an hour or so.

Despite its 11cm growth in overall length, the Yaris is still shorter than the latest generation of larger superminis such as the Fiat Grande Punto and the Renault Clio. Part of the reason why these cars are so large is compliance with pedestrian impact legislation which is adding a few centimetres to the nose of many cars. The Yaris gets round this one by arcing the bonnet high over the unyielding mechanicals to provide a deformable surface.

This means that despite being shorter on the outside, the Yaris is competitive in terms of interior space and easy to park at the same time. Fold those EasyFlat rear seats down and you're treated to the largest stowage area of any supermini. This system, as we've said, allows the rear bench to be split 60:40 and both sections to slide independently. Therefore it's possible to transport long, bulky items without impinging on a rear passenger's legroom allowance.

If you buy a car on styling however, the Yaris may struggle to initially grab your attention. Cars like Fiat's Grande Punto have upped the design ante quite significantly and just as the original Yaris entered the market as customer demand swung towards serious size, there may now be a danger that the current model answers that question just as sassy styling becomes a key buyer criterion. Having said that, although there will inevitably be a backlash against big boxes, it's not coming right now. Space and safety remain the top two buyer wants and the Yaris answers both very comprehensively. Plus, as we've suggested, equipment levels are beyond the ability of most major rivals to match. Keyless ignition features on plusher models as well as climate control and a trip computer.

This car may charm your head rather than your heart but you can't get around the fact that for £8,000, the Yaris Ion offers and awful lot of car for the money. In short, it's a supermini you simply can't afford to ignore if you're shopping in this sector.