EARLY in 2014 year Peugeot replaced the 107 with the 108 and it was developed as part of a partnership with Toyota and the French PSA group.

The Toyota Aygo, Citroen C1 and the new 108 all roll-off the same production line and so share the same platform and most powertrains.

The result is three city cars that pretty much feel the same so my advice is to choose the one that you most like the look of.

While Toyota and Citroen seem to have opted for fun and funky, Peugeot has gone for a more grown-up classy look that will appeal to many drivers.

Like its sister cars the Peugeot represents good value for money and is also fun to drive and frugal.

The new 108 has been designed to look more upmarket and its chrome grille and narrow headlights replicate the look of the other new products in the Peugeot range.

At the rear there are distinctive lights and Peugeot offers the 108 in two-tone paint schemes for customers who want to make their cars a little bit special.

The interior is a huge improvement over the 107. The biggest change being the addition of a seven-inch colour touchscreen for all but the entry-level model. The display can show what's on your phone and effectively can give you free sat nav via Google Maps, as well as access to all your stored music.

Cabin quality has also been improved and there is room for four, but if you plan on using the rear seats regularly, make sure you go for the five-door.

The Allure Top! was very well equipped and came with alloy wheels, automatic headlights, tinted rear windows, front fog lights, chrome door handles and mirrors, electric heated door mirrors, a reversing camera and the Open and Go canvas roof.

You also get daytime running lights, air conditioning, steering wheel controls, a DAB radio and Bluetooth. It also comes with all the latest safety equipment including ABS with electronic brake force distribution and ESP with hill holder and six airbags.

It is offered with a choice of two engines a 1.0-litre three-cylinder VTi engine carried over from the old model with some modifications or the 82bhp 1.2-litre three-cylinder unit featured in thist car.

If your only going to be using it in town, stick to the smaller and cheaper unit which can return almost 70mpg, but if you do tackle longer journeys at times, the bigger engine is the better bet as it feels more comfortable at higher cruising speeds.

The 1.2-litre power unit is good for a top speed of 106mph and reaches 62mph in 11.0 seconds. The claimed combined fuel economy figure is 65.7mpg.

A supple ride and the light steering makes the 108 easy to drive in town and a breeze to park in tight spaces.

Boot space has improved significantly over the old 107, up from 139 to 196 litres, while the 50/50 split rear seats also fold down for extra luggage capacity.

Prices for the new 108 start at £8,245 while the Allure Top! model with its opening roof costs £12,245.

The city car market is a very tough one but the 108 deserves consideration for its neat blend of style, low running costs and practicality.