Launched in 1976, the Ford Fiesta quickly established itself as the ultimate supermini. It was a top seller in its sector for 13 years and became the bread-and-butter car for everyone from cash-strapped nurses to students and young mothers.

However, today it can no longer claim to be cheap and cheerful.

Used versions of the most recent incarnation of the Fiesta, launched in early 2002, cost more than most of their supermini competitors despite many of them being faster, better equipped and visually more exciting.

Why should the residuals remain so strong? The answer is simple: it drives the best. Ford seems to have invested all its know-how in creating a car that is genuinely superb to drive. Take one along a challenging B road and you’ll understand. It boasts a slick five-speed transmission, responsive brakes and plenty of pulling power low down the rev range. The chassis is excellent and what the Fiesta lacks in power it more than makes up for in agility.

Unfortunately for Ford, all that great engineering may be a waste of time for a car that will be spending most of its life in built-up areas travelling at less than 30mph.

But unlike the majority of its previous incarnations, which were often a triumph of style over substance, this latest car is a truly well engineered piece of kit.

Open the door and you’ll find the latest Fiesta is also very grown up. No XR2 stripes here, and not a Recaro seat in sight either. Instead it is all about understated good taste. There is plenty of room in the front and the back. The driver’s seat adjusts up and down, as does the steering column, and the gearstick is perfectly to hand — making it an excellent driving environment.

Fire up any of the engines, whether petrol or diesel, and you’ll have no problem with refinement. The TDCi diesel engine, also found in the Citroën C3 and Peugeot 206, is almost as quiet as the petrol units. Despite the fact that most Fiesta drivers cover less than the national annual average of miles it’s the ultra-economical 1.4 TDCi unit that I’d recommend. It returns more than 50mpg and is eager to please, pulling strongly in any gear in a wide rev range, making it feel much quicker than the 0-60mph time of 14.4sec would suggest.

When it came to choosing a trim level Ford initially tried to make it easy. The entry level LX is basic: no alloys, no air-conditioning and no metallic paint. Step up a notch to the Zetec and you should get a bit more — the alloys appear but still no metallic paint or air-conditioning as standard. At the top of the range is the Ghia, which has air-conditioning but still no metallic paint.

In fact one of the Fiesta’s weaknesses is the lack of standard kit. Sit it next to a similarly priced Nissan Micra and the differences become embarrassing: no auto wipers, no alarm, no on-board computer, no climate control and no side airbags.

However, for a city runaround this lack of technology should mean an increase in reliability. As my father would say: “If you haven’t got it, then it can’t go wrong.” This is certainly true of the Fiesta. Throw in the fact that it drives most other cars in its class off the tarmac and it is clear the Fiesta is still great value for money as a used buy.

Air-conditioning An optional extra on LX and Zetec models but a very desirable one

Transmission Five-speed manual is standard with option of traditional auto box on 1.6 models and the Durashift EST semi-auto clutchless gearbox on 1.4 litre petrol cars

Engine Superb economy from 1.4 TDCi engine makes it the most sought after

Servicing Due every 12,500 miles or 12 months, whichever is the sooner

Safety Side airbags an option on all models, but the Fiesta scores a respectable four stars in Euro NCAP crash testing

Security Engine immobiliser is standard but alarm is an option on all but top-spec Ghia and recently introduced Zetec S and ST models

Stereo CD standard on LX, Zetec and Ghia models

Boot space 253-litre boot is the biggest of any Fiesta yet; spare wheel is stowed inside the boot floor, protecting it from theft

Insurance Group 3 on the 1.25 petrol, group 4 on the 1.4 petrol and diesel and group 6 on the 1.6 litre petrol

Wheels Alloys are standard on Zetec and Ghia models

Brakes Front discs, rear drums, excellent antilock braking with EBD (electronic brakeforce distribution) as standard

Vital statistics

Model Ford Fiesta 1.4 TDCi
Engine Four-cylinder, 1388cc diesel
Power 68bhp
Transmission Five-speed manual
Fuel 64.2mpg (combined cycle)
Acceleration 0-60mph: 14.4sec
Top speed 102mph

The one to buy

Ford Fiesta 1.4 TDCi Zetec 5dr with air-conditioning, 2003 03-reg with 20,000 miles. Pay £7,275 from a dealer or £6,500 privately

Or for similar money

2003 53-reg Nissan Micra 1.5dCi SE
2003 53-reg Peugeot 206 2.0HDi Eco
2004 04-reg Fiat Punto 1.3 Multijet
2002 51-reg Honda Jazz 1.4i-DSI SE
2002 52-reg Citro‘n C3 1.4 HDi