Everyone’s familiar with the Golf and Polo, but the newest member of the Volkswagen family has yet to gather the same following. Launched in spring 2006, the Fox is the baby of the range and is also the cheapest. By building it in Brazil, VW was able to price the three-door hatchback at as little as £6,452 when new. Today the same car is worth about £4,650 on dealer forecourts and less privately.

The range comprises two petrol-engine versions, a three-cylinder 1.2-litre producing 54bhp and a four-cylinder 1.4-litre with 73bhp. Despite a glacial 0-60mph time of about 17sec, it is the 1.2-litre engine that has the most character. It sounds good, revs freely and can return about 45mpg, which, given the fact that there is no diesel option, makes it the most economic choice.

On the road, the Fox conveys a familiar VW sense of quality. Road and wind noise are well suppressed and although both engines can get raucous when worked hard, under normal driving conditions they are capable. Where the car excels, however, is in town. The light steering and nimble handling come into their own, and the engines feel quite nippy.

It may be most at home in the city, but the Fox doesn’t exactly cut a dash as you steer through chic metropolitan boroughs. The conservative styling lacks the cute looks of the Lupo, which it succeeded, but what the Fox lacks in looks it makes up for in space. Longer than the Lupo by 1ft, the Fox will comfortably seat four adults. The absence of a centre rear seatbelt, though, means four is the limit. With a high roofline and slightly raised seating position the Fox creates an interior more akin to a mini MPV than a supermini. On the higher-grade Urban model the rear seat slides fore and aft to offer different legroom and boot space combinations.

Standard equipment levels are good: all models boast twin airbags, antilock brakes, CD player, tinted glass and illuminated vanity mirrors. For about £400 more, the Urban Fox offers electric front windows and central locking. Presumably in an effort to simplify production, VW priced any extra options prohibitively high to dissuade their selection. With air-conditioning adding nearly £1,000, for example, the tactic appears to have worked: the chances of finding a used car with extra equipment are slim.

Lack of luxuries aside, the better than average residual values, good fuel economy and proven reliability make a strong case for the Fox as the unsung star of the VW family.

Vital Statistics

Model Volkswagen Urban Fox 1.2

Engine 1198cc, three cylinders

Power 54bhp

Transmission Five-speed manual

Fuel 46mpg (combined)