Best Small Car - VW Polo TDI

1.5-litre turbo-diesel, 4 cylinder, 5-speed manual, 5-door hatch. Price: $22,990

The Volkswagen Polo TDI proves once again that power, features and fuel economy are the key ingredients to a successful small car. Despite the emergence of a serious new competitor in the revitalised Mazda2, the Volkswagen's diesel Polo picked up a second consecutive Best Small Car gong in 2007.

Although its considerable price premium (at $22,990, some $6000 over the other finalists) lost points in the pricing and depreciation criteria, the smallest VW scored well in the other critical scoring areas (running and repair costs, fuel consumption and environment) to snare a comfortable victory. Not surprisingly, frugal fuel use is a strong point thanks to relatively light weight and an impressive 1.9-litre, turbo-charged, diesel, four cylinder engine mated to a five-speed manual transmission.

We criticised the lack of an automatic transmission last year and it's still not available. Once, turbo-diesels weren't anything to get excited about in any vehicle, let alone a small car. But the new breed of Euro diesels are beauties, offering minimal emissions, no smoke, good power and oodles of useable torque. The Polo's powerplant delivers a modest 74kW but, as with most diesels, it's the meaty 240Nm of torque, spread between 1800rpm and 2400rpm, that impressed the most and helped the Polo match the performance score of the excellent Mazda2 engine.

And it's one of the quietest oil-burners around too, both inside and outside the car. Being a modern engine using the latest computerised engine-management technology, there is little evidence of the dreaded turbo lag. In fact, the little VW can wheel-spin away from the lights or out of tight corners if you're not careful with the right foot. In design and function criteria, the Polo scored well for its practicality and was unmatched for its ergonomics. Four doors are very practical, helping entry and egress for the comparatively spacious interior. The wide opening rear hatch gives easy access to the luggage area.

And while not getting the highest score for handling, the Polo was not disgraced on the scoreboard or on the road. It is zippy, nimble and easy to manoeuvre, whether in the shopping centre or on a bit of twisty road. And it does this without compromising ride quality - the Polo outscored all finalists in this criteria. Speaking of quality, the Polo has it in spades. It's evident from the moment you jump inside and the doors close with a reassuring 'clunk'. The safety and luxury equipment are impressive for a car in this class, and features like the reach and height adjustment for the steering column help to justify the price premium.

While the Polo's diesel variant triumphed in 2007, its petrol-engined sibling also performed strongly, scoring a top-seven finish and even out pointing the diesel in a couple of areas. It would take a long while to even get close to recouping the extra outlay over its competitors, or even the petrol Polo - but the diesel Polo is a better drive and a class act. And what price do you put on that?

Finalists Mazda2 Neo 1.5; Toyota Yaris YRS 1.5

Source: www.australiasbestcars.com.au