Would you rather have a used Daewoo or a second-hand Chevy? Just over two years after General Motors took over Daewoo, it rebranded its European car line-up Chevrolet. The Daewoo Matiz became the Chevrolet Matiz, and with it began an era in which the name of one of the world’s most famous marques adorns the rumps of some of our smallest cars.

At just less than 5ft wide and 11½ft long, the petite Matiz is a featherweight. So despite being offered with a three-cylinder 800cc engine, this is a 90mph car capable of mixing it in the outside lane. Pick the larger 1-litre unit, and you’re looking at the best part of 100mph. Not that many drivers would challenge theirs to such vigorous exertion — just like its Daewoo counterpart, the little Chevy is happiest in the urban jungle.

With town driving high on most buyers’ agendas, the option of a four-speed automatic gearbox looked appealing. But be warned: with just 52bhp in the 0.8-litre, performance suffers badly, and the open road becomes a test of nerves.

Back in the city, though, the Matiz is in its element: a tiny turning circle, great visibility and a narrow body make it ideal in traffic. Safety is dealt with by twin front airbags, antilock braking, and Isofix child-seat attachments on both rear seats, all of which help it earn its three-star Euro NCAP crash-test rating.

Despite its budget feel, the cabin withstands the ravages of time. The hard plastic interior looks utilitarian, but it is durable and well engineered.

With slab sides and thin doors, the Matiz wastes none of its inches, and has a clean and pleasant appearance. Despite Chevrolet’s insistence that its Matiz has significant enhancements over Daewoo’s version, it would take an expert to find them. And when a 2005-registered Chevrolet fetches some £300 more than a virtually identical Daewoo, it suggests that buyers are keener on the American name. If your budget allows, a quite fresh 2006 1.0 SE+ model with just 20,000 miles can be yours for £3,000.

With the current interest in CO2 emissions and fuel economy, the Matiz is perfectly engineered for today’s recession-hit thrifty times. Most versions fall into the £120-a-year bracket for road tax, while an Eco version of the 0.8-litre sneaks in below 120g/km, qualifying it for tax of just £35 a year.

Chevrolet Lite, as Daewoo was once called, could soon become one of GM’s better-selling model lines, and that’s all thanks to the recession.

Owner’s View

The Chevy Matiz, my first real car, drives well and looks cute.

Olivia Katherine, Nailsea, Somerset

Vital Statistics

Model Chevrolet Matiz 1.0SE+

Engine 995cc, four cylinders

Power 65bhp

Transmission Five-speed manual

Fuel 50.4mpg (combined)

Acceleration 0-62mph: 14.1sec

Top Speed 97mph

CO2 137g/km

Road Tax Band C (£120 per year)

Cost New Now £8,350

Need To know

Cheap insurance

Group 2 for 0.8-litre models, group 3 for 1-litre versions

Cylinder head gasket

Check for coolant or compression loss on 0.8-litre, which is prone to faults if often used for long motorway trips

Engine bay noise

Buzzing from engine bay often due to incorrectly routed cable under bonnet.

Exhaust

Infrequently used low-mileage cars suffer rusting due to moisture build-up

Rear seats

The 60:40 split fold is a standard feature of all Matiz versions

Rear Suspension

Rear-suspension noise follows Chevy’s attempt to free more cabin space

Servicing

Timing belt and tensioner should be replaced at 40,000 miles or four years

The one to buy

A 2007 07 Daewoo Matiz 1.0 SE+ with 20,000 miles. Pay £4,150 at a main dealer or £3,700 privately

or for similar money

2002 02 Toyota Yaris 1.0 VVT-i CDX 5dr

2004 04 Honda Jazz 1.4i DSi 5dr

2004 54 Seat Ibiza 1.2 5dr

2007 07 Daihatsu Charade 1.0 5dr 2008 08 Perodua Kelisa 1.0 GXi SE 5dr