Selling cars is a ruthless business, and few models that start out in life as a disaster are afforded a second chance to get it right. Somehow, though, Kia, the South Korean car company, pulled it off with its second-generation Rio. Whereas the first, 2001 model was so ugly that Jeremy Clarkson drew comparisons to an inside-out dog, the second Rio, in 2005, proved such a hit with critics and consumers that Kia quickly put up its prices.

Designed at the styling studio in Rüsselsheim, Germany, that Kia shares with Hyundai (which bought Kia in 1998), the second-generation Rio had little in common with its flimsy predecessor. Gone was the awkwardly proportioned, Ford Focus-size body, and in its place came a smaller, Ford Fiesta-sized supermini package that looked good.

Although the Rio became smaller externally, good packaging and a longer wheelbase stopped the interior shrinking. Reclining rear seats kept things as comfortable for those in the back as in the front, and there were thoughtful touches such as an uncommonly long stowage shelf beneath the dashboard that allowed passengers to stash away an umbrella.

Given its modest price, all versions — GX, LX and GS — were generously equipped, with electric front windows, air-conditioning and a decent JVC radio-CD player. The highest-spec GS variants added parking sensors, rear electric windows, an alarm and alloy wheels, all nice to have but probably insufficient to justify the £700 premium that used examples command.

Under the bonnet came new engines: a 1.4 litre petrol unit producing 96bhp and, for the first time, diesel power in the guise of a 1.5 litre 109bhp motor. The petrol may not be as perky as the diesel, but it will propel the Rio gamely and save the used buyer some £700 in the process. If you pile on the miles and want a diesel, you won’t be disappointed. It is capable of 60mpg in mixed motoring and emits 121g/km of CO2; in the summer the engine was retuned and the figure fell to 119g/km, bringing road tax down to just £35 a year.

That’s impressive. Better still are the Rio’s road manners. The driver of the old model would have found it more satisfying to get out and walk. The current car is substantially more refined. If there’s a hitch, it’s that the service intervals are rather close at 10,000 miles.

Although it is built to a budget, with a smattering of cheap, touchy-feely bits in the cabin, the Rio’s durability is unquestionable, and everything is clear to see and simple to use. For the most revealing indicator of the car’s ability and reputation, look no further than its residual values. Three years into its life, they are among the best in class.

OWNER’S VIEW

The diesel engine responds well and the brakes are excellent, but I manage only 50-55mpg, while Kia quotes 60mpg.

Ray Biggs, Oxford

NOTE THE FOLLOWING

BRAKES Check for worn discs on all models; diesel models give discs heavier use than do petrol models

CABIN Not the most luxurious in the world but compensates by being hard-wearing and well packaged

DIESEL ENGINE With common-rail fuel injection and a variable-geometry turbocharger, it produces good power while still meeting emissions standards

GEARBOX Five-speed manual is standard; owners report no problems. Optional auto on 1.4 litre petrol

SAFETY Euro NCAP score of four stars for adult occupant safety and three stars for child occupant safety

STEREO JVC radio-CD unit is standard but looks old-fashioned

WHEELS AND TYRES Check for dings and scuffs that can lead to uneven tyre wear or ruptured tyre walls

VITAL STATISTICS

MODEL Kia Rio 1.5 CRDi GS

ENGINE 1,493cc, four cylinders

POWER 109bhp

TRANSMISSION Five-speed manual

FUEL 60.1mpg (combined)

CO2 121g/km

ACCELERATION 0-60mph: 11.2sec

TOP SPEED 110mph

COST NEW (2006)£8,392

TAX BAND C (£120 a year)

THE ONE TO BUY Kia Rio 1.5 CRDi GS five-door 2006 06 with 20,000 miles. Pay £5,695 at a Kia dealer or £5,000 privately

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