PEUGEOT'S estate version of its swish new 508 is on of those rare cars - arguably better looking than the saloon.

The saloon is hardly an ugly duckling but the SW is a bit of a head turner.

OK, its not called an estate any more, taking instead the tag, SW or sport wagon. The thing is, it fooled a couple of people who, from a distance thought it was some kind of coupe.

It does have the look of an elongated coupe, and the trade-off for this is that there is less internal space and practicality suffers as a result, but it is still a more than capable load lugger.

A replacement of the top end 407, the 508 and 508SW are competing with exalted company like the Ford Mondeo, the Vauxhall Insignia and the VW Passat, the 508 clearly a better car than its predecessor and should be more than capable of taing the battle to its big competitors with a starting price of £19,175

The car features sexy curves and attractive alloy wheels on most models. The front-end has dispensed with the shark-mouth grille of the 407 and now features a neat, what Peugeot describe as a floating grille, while the rear end features light clusters that replicate a big cat's claws effect.

The big Peugeot also offers good value for money, with all models, even the base Access being well equipped.

Peugeot is one of those companies that has taken a quantum leap forward in recent years in terms of quality and the 508 is a classic example. The interior fittings feature high quality materials as does the dash and door trim. Doors close with a pleasing clunk, while most controls are clear and legible.

The steering wheel is fully adjustable as are the seats on the tested model.

Five can be seated in comfort and the cabin is light and airy, especially with the panoramic roof.

It may not be the biggest estate, but with 512 litres available with all the seats in place, increasing to 1,598, when they are folded, most domestic loads can be accommodated and a week's shopping is swallowed with ease.

For the sporty types, a large bike easily fits and for the golfer it takes all the clubs and bits and pieces with loads to spare.

There are a number of engine options, with 140bhp two-litre unit, which offers decent pace and excellent economy, expected to be a top seller.

It delivers plenty of power through the smooth six-speed manual gearbox, pushing the car from 0-60mph in 9.8 seconds. The high torque also kicks in particularly with motorway driving and makes overtaking a breeze.

On top of this claimed average fuel consumption is in the mid-50s, while low CO2 emissions of 130g/km means it attracts low benefit in kind taxation of 19 per cent for business users.

The handling matches the power and the car feels taut and composed for such a big car, even when cornering quickly, while the ride is smooth and comfortable. Only the steering lacks the feedback for a more entertaining drive.

Noise intrusion from the diesel is muted and good quality soundproofing materials means the interior is a quiet and refined place to be.

All Peugeots are now packed with safety equipment and the 508 boasts front, side and curtain airbags, plus standard stability programme with traction control and a superb sound system with USB connectivity.

The only real bit of extra luxury missing on this high-end model is the sat-nav, which comes as standard on the lower-spec SR, not doubt to attract the business buyer.

Peugeot have decided to seriously challenge the big boys with fiercely competitive pricing, there is no doubt this car is good enough to compete.