MG built its reputation on affordable but fun sports cars, so I for one was delighted to see the company's new MG3 continuing that fine tradition.

The entire four-car range comes in below the £10,000 barrier, which is quite remarkable today, with prices starting from just £8,399.

The version we tried was the 3Form Sport VTi-Tech model, which with a few added extras pushes the asking price into five figures, but only just, and the car still represents excellent value for money.

The MG3 certainly looks the part with its Red Rose paintwork which is a no cost option, Piano Black Red interior pack which costs £99 and 16-inch diamond cut alloy wheels (one of the extras, but a worthy addition at £449). The other added extras are the Newton Black door mirror caps at £99. The MG3 then, can certainly hold its head up in the looks department when compared to similar models from Suzuki, Ford and Vauxhall.

MG's Longbridge engineers have designed the car and put it together, but its components are mostly produced in China by SAIC, MG's new owners, and assembled here.

With daytime running lights marking the front corners in the MG's deep front valance, black side skirts, and a black diffuser clearly visible at the rear, the "look" is completed by a suitably sporty square exhaust protruding out of the back. There is very little to dislike.

The doors all shut with a solid sounding clunk and once inside, the interior is also a pleasant surprise. With red stitching on the steering wheel and seats, and a squiggly red pattern running up the centre of the seat cloth, the sporting theme continues, and the whole effect is finished off with red circles around the dials, air vents and radio unit - which incidentally, includes DAB.

There are two main dials, again with red detailing around their perimeters, with red needles for the rev counter and speedometer.

It's an uncluttered look, and although a button on the left-hand side of the steering wheel allows control of the radio volume and channel, there's a corresponding blank on the other side which looks a bit odd, and the interior plastics are all hard. There are four electric windows on the this car, but the switches feel flimsy, as do the interior door handles, which is a shame as they are only things which really detract from an otherwise impressive effort.

The radio system also allows Bluetooth phone connectivity which is good, but can be a bit fiddly to use, although I was impressed with the sliding compartment on the top of the dash which hides an iPhone holder and connector, which allows you to use your phone as a sat nav if you have suitable software.

The MG3 range is powered by a 1.5-litre petrol engine, developing 105bhp, which enables the car to accelerate from rest to 62mph in a shade over 10 seconds, and gives it a top speed of 106mph.

It's not going to compete, on paper at least, with a Peugeot 208 GTi or the new Fiesta ST, but the pay-off comes with a lowly Group 4 insurance rating.

Yet despite its apparent lack of punch, the MG3 is still quick enough to be fun, although the engine can sound a bit harsh when revved hard, which you need to do to extract the performance, but then you do get a nice raspy note from the exhaust at the same time.

The package is helped by a very capable chassis which is clearly able to cope with considerably more power than is currently deployed. The damper settings have been well chosen, giving a good balance between a comfortable ride and excellent handling.

The MG3 handles tidily, turning in accurately and coping well with quick changes of direction at speed, with just the right amount of lift-off oversteer available to tuck the car's rear end in and tighten its line through the bendy bits. Longbridge's engineers have done a good job with the car's set-up.

The five-speed gearbox works well, although I would like to see either a sixth cog, or a slightly higher fifth gear to bring the revs down from almost 3,500rpm at 70mph to reduce fuel consumption. During my test the car returned 35.4mpg overall and it has a CO2 emissions figure of 136g/km.

The brakes seem to be up to the job, with little noticeable fade, even after a fair bit of enthusiastic driving, so it's all good.

It has a traction control system which can be turned off, and the top version gets such luxuries as automatic lights and wipers, making it incredibly well specced for its very modest asking price.With a good-sized boot and split-folding rear seats, the MG3 is practical and fun. There are also lots of packs available to personalise your MG3 with fancy graphics, decals and flags.

With an expanding dealer network and an enthusiastic owners' club, it's fantastic to see this iconic brand making good its return from ignominy.