STYLISH, compact cars with excellent handling have always been a Fiat forte and the latest Punto is no exception.

Following models wearing what looked pretty much like a chrome moustache, the latest  Punto's nose adopts a version of the old Ferrari grille and the car is none the worse for it.

Small cars should draw second glances and the Punto is a natural. Again, as always with Fiat, there is a fine selection of engines and in the 1.4 8V 77bhp Easy version I drove,  Italian passion bubbles away, even if it's a little short on horsepower.

But behind it all is the real governing factor of this model - common sense. Underneath the classy styling is an economical everyday car that is a long way off basic considering the test car's price of £11,305.

With mid to high 40s in mpg in its sights and a top speed of 103mph it is a capable little car which is surprisingly comfortable.

It has a formidable in-house competitor in teh shape of the retro-styled 500, but the Punto is more for the traditionalist who wants a neat, good-looking hatchback that does what it says on the tin.

It is the modern interpretation of the old petrol 1.4s that were the backbone of British motoring and proves that petrol still has the power to pull sales despite the rise of the diesel engine. 

There is also an amazingly powerful little 84bhp TwinAir two-cylinder motor in the engine line-up for those who want to evade the London congestion charge and need a more throaty beat to their driving.

The latest Punto is a refined expression of the good points on previous generations. For instance it could not be more simple to convert this little three door into a capacious mini estate by pulling the rear seat squabs forwards and hinging the backs down to make a very useful loading space. It can be done in seconds and makes the car's Easy designation ring true.

Instrumentation is simple and well lit and the standard of interior trim is up on previous incarnations of this car.

The engine, linked to a five-speed gearbox gives reasonable performance with a 0-62mph sprint of 13.2 seconds. But motorway cruising ability is the 1.4's strong point, outshining its could-do-better zoom away from the lights.

But, like many Fiats before it, the Punto prides itself on handling. With two settings for the power steering system and almost rail-riding capabilities it is one of those cars that loves to be driven.