IT'S often said good things come in small packages. And that's particularly applicable to the Honda Jazz - a city car with the carrying capacity of an estate.

Certainly, there are racier-looking small hatches and faster pocket rockets abound, but there are few reasonably priced models that can hold a candle to the Honda's blend of clever usage of space and real-world economy.

Marginally longer than a VW Polo but noticeable taller, the Jazz has a novel seat layout that allows the rear seats to fold flat to the floor. And the rear seat bases flip upwards when the backrests are in position, allowing a large vertical space for hauling awkward shaped things.

The cabin generally is a practical, well-thought out area, though rather drab-looking, thanks to an abundance of dark plastic mouldings and seating materials. There are a plenty of cup-holders and cubbies plus map pockets in the backs of both seats, while the boot can cope with just over 300litre of luggage.

The five doors are quite light and feel a tad flimsy when slamming shut.

Visibility all-round is good with a deep, sloping windscreen glass and small quarterlights at the front and a neat, shot-off tail that makes parking and manoeuvring an easy job.

Although the Jazz's shape and image is far from sporty, its performance is sprightly and very accessible. Powered by a 1.5litre petrol engined coupled to two electric motors and a battery. CVT automatic transmission looks after gear changing.

The benchmark 62mph comes up in a very respectable nine seconds, putting it on a par or slightly nippier than rival small cars.

The gear selector has a B-slot for regenerative braking which converts the energy produced by the brakes to electricity to charge the battery.

Ride is on the soft side with some cornering lean, although adhesion limits are reassuringly high. Rutted surfaces and the inevitable potholes that litter our roads can catch out the suspension, allowing the general peace of the cabin to be interrupted. Steering is light and somewhat bereft of road-feel.

Noise levels are pleasantly low on the move with supressed wind and road intrusion. Mechanical coarseness only makes itself known when you floor the accelerator and the CVT gearbox causes the non-turbo engine's revs to rise. Slacken off, and calm is soon restored.

Few competitors are cheaper to fuel than the Jazz. We regularly averaged 60mpg during everyday driving, with a best of 67mpg on a gentle country route.

On the safety front, the Jazz gets 10 airbags, autonomous emergency braking, traffic sign recognition and lane keeping system. The Advance version upwards also gets blind-spot monitoring and rear cross-traffic alert.