IT may have taken some time, but eventually Mercedes-Benz came out with a serious contender to square up to the likes of the Volvo V40, BMW 1 Series and Audi A3.

For the third-generation A-Class, which hit the streets at the end of 2012, proved to be more that a match for its competitors, with its radical styling and high-tech on-board features.

Out went the square, boxy body style Mercedes had stuck with for so long and the new A-Class was given a more conventional-shaped styling more in tune with what buyers now expect.

Lower and longer, squatter and more forceful looking, it certainly looked the part, while inside the cabin there was much more space for greater passenger comfort.

The high, upright driving position of the old car was ditched for a coupé-like driving position perfect for any journey, be it a short one around town or a high-speed, long-haul motorway dash.

Inside, the design team managed to get things pretty much spot on with fittings and fixtures of the finest quality. Mercedes also went for a modern-look tablet-styled centre display to replace the usual colour screen where on-board information is usually found.

This up-to-the-minute, high-tech look gave the A-Class something of a march on the competition, but sadly the tablet is fixed so can't be removed to be used elsewhere.

Especially for the A-Class, a new engine range was introduced, including a highly-economical, sub-100g/kg diesel.

Reserved solely for the A180 model, it is actually built by Renault and emissions for this 1.5-litre 108bhp engine are just 98g/km, making it a real gem for business drivers and private owners alike.

A larger 1.8-litre Mercedes unit is also available which pumps out 133bhp and pulls 221lb/ft of torque. Emissions for this engine are set at 118g/km.

The real star buy however, is the oil-burning A200 BlueEfficiency CDI. Under its bonnet sits a 133bhp 1.8-litre engine which delivers a nicely-balanced compromise between performance and economy. It has a top speed of 130mph, 0-62mph dash time of 9.3 seconds and gives combined fuel economy of 62.8mpg.

But for those who still shy away from diesel power, three petrol choices power the A180, A200 and A250.

As with all Mercedes-Benz passenger vehicles, safety features are given high priority, making the A-Class a pretty safe place in which to travel.

But look out for cars with options such as Collision Prevention Assist which brakes the car if its computers sense a crash is imminent, Attention Assist which studies your driving and tells you if you need a break, Hill Start Assist, Blind Spot Warning and Active Cruise Control which prevents you getting too close to the vehicle ahead and Park Assist which will find a space and then automatically park the car for you.

Expect to pay between £10,365 and £13,255 for a 2012, 12-plate entry-level A180 BlueEfficiency model with around 30,000 miles on the clock. Move on a year and prices will increase from between £12,085 and £14,925.

Better equipped SE models will carry a premium of around £800 to these prices, but as with other premium brand models, most will have been specced up by the orignal owner, so forecourt prices could be much higher depending on what options have been added.