It's easy to underestimate the searing pace of car development. No sooner does a car enter production than the designers, engineers and money men clap each other on the back, watch the marketing people do a preliminary check on how well the new model is doing, analyse the competitors and start all over again. You might think this is excessive but you'll do it yourself in a way. Think of how many cars were launched as recently as three or four years ago that have been largely eclipsed by rival offerings. When Toyota's original Yaris was launched, it was unquestionably the finest supermini money could buy.

Then we saw the Honda Jazz, the Ford Fiesta, the Renault Modus all offer more space than the compact Yaris could ever hope to compete with. Toyota launched the Yaris, it did well for a while, but then the market changed. A great little car was just that, great but little. The subsequent launch of the Aygo citycar only highlighted how redundant the Yaris had increasingly become. If space isn't a priority, the old Yaris is still a very good used buy, German TUV data showing it to be the most reliable car of its age it's possible to lay your hands on. That's small consolation for Toyota, a company unwilling to see its supermini sales haemorrhaging.

So we come to the latest Yaris, priced from £8,985 and first shown at the 2005 Frankfurt Show. First impressions were that Toyota had taken the old Yaris 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.

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 in 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.

"Toyota needs to drive home the point that this car isn't merely a facelift of the old model"

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 models. 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 the EasyFlat rear seats down and you're treated to the largest stowage area of any supermini. This system 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.

Aerodynamics, once a major vehicle selling point in the Eighties, are again coming back into vogue as manufacturers look for relatively inexpensive solutions to the problem of their wares becoming bigger, heavier and therefore less economical on fuel. A few thousand hours spent in a wind tunnel can claw back those losses and the Yaris benefits from a flat central underfloor, a smooth fuel tank and a cover between the spare wheel and the bumper. The result is a drag coefficient of 0.30, excellent for such an upright car. Toyota claim to have cut frontal lift at speed by 100 per cent, which in turn gives benefits in terms of motorway stability and resistance to crosswind effects.

If you buy a car on styling, however, the Yaris is likely to struggle. Cars like the Grande Punto have upped the design ante quite significantly and just as the original Yaris entered the market just as customer demand swung towards serious size, is there now a danger that the current Yaris answers that question just as sassy styling becomes a key buyer criterion? Maybe not. 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. Equipment levels are also beyond the ability of most major rivals to match. Keyless ignition features on plusher models as well as climate control and a trip computer.

Three petrol engines are available - a 1.0-litre three-cylinder unit, a more conventional 1.3-litre four-cylinder powerplant and the 131bhp 1.8-litre range topper. Diesel buyers are catered for with a 1.4-litre turbodiesel. In case you were wondering, the 1.0-litre unit is all-new but the others have been carried over from the previous generation Yaris. That's no bad thing, as the Yaris always had some of the best engines in its class. For the time being, let's concentrate on that three-pot 1.0-litre lump. Built in Japan, this engine will appeal to buyers who are attracted by the city credentials of the Yaris. 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 of the whole supermini set and you have a very agile and wieldy city scoot.

In order for the latest Yaris to succeed, Toyota need to clearly communicate that this car has been redesigned from the ground up. Failing that, many potential buyers may pass it off as a facelift of the old model and bypass their Toyota dealer on the way to a competitor. That would be a shame because the Yaris has a lot to offer. The opposition have caught up and it's now no longer a clear class leader, but it's still one of the most sensible purchases a supermini buyer can make.

TOP 5 YARIS DEALS

The results below show the top YARIS deals on buyacar

	Toyota Yaris 1.4 D-4D TR 5dr Spec edn Hatchback
	ETR	Mthly £191	Saving £973	Price £10,567
	Toyota Yaris 1.0 VVT-i T2 5dr Hatchback
	ETR	Mthly £156	Saving £519	Price £8,961
	Toyota Yaris 1.4 D-4D T3 3dr Hatchback
	ETR	Mthly £195	Saving £990	Price £10,705
	Toyota Yaris 1.3 VVT-i TR 5dr Spec edn Hatchback
	ETR	Mthly £165	Saving £854	Price £9,686
	Toyota Yaris 1.4 D-4D SR Nav 5dr Hatchback
	ETR	Mthly	Saving £1,083	Price £11,457

typical 11.48% APR

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