A NEW year bargain is on the way from Hyundai as the Korean car maker goes head to head with the big names.
Hyundai is pitching its new i20 supermini directly at the likes of the Ford Fiesta and Vauxhall Corsa.
It's quality territory and cars of this ilk make up the largest part of the British car market.
Unashamedly brazen, Hyundai is launching the new model on January 15 priced from £8,645 for a five door version undercutting its key competitors by more than £1,000.
To up the ante, the basic i20 features a 1.2-litre petrol engine capable of averaging more than 50mpg and comes complete with air conditioning, central locking and even a glovebox cooler as standard.
This is more than a warning shot across the bows. The 1.2-litre i20 is really rather good to drive and - if you can put up with plenty of black plastic in the facia - remarkably cost effective.
It comes with a five year warranty, will cost £90 a year to tax from April and low mileage versions are predicted to retain almost half their value over three years.
Like the Fiesta and Corsa, the i20 has sharp body cuts in its design to add appeal. As little cars go it's bigger than average and can seat six footers front and back while boot space is adequate at 295 litres.
In mid-range Comfort trim, priced from £9,445, the cabin is brightened up with either red or blue upholstery panels in the doors and the car also comes with a trip computer, folding and heated door mirrors and iPod connections as standard.
For the price it's high specification and top value for money.
Moreover, the Korean reputation of being cheap and cheerful is dispelled with good build quality and a ride on a par with European models.
The 1.2 engine is particularly impressive and tuned to provide power at low revs. It develops 77bhp, can muster a top speed of 103mph but feels much livelier than its official 0 to 60 time of 12.9 seconds.
Claimed average fuel economy is 54.5mpg with CO2 emissions of 124g/km - greener than its competitors - and although it is available only as a five speed manual, the performance is more than adequate. Neither does it run out of steam at motorway cruising speeds.
Safety features include six airbags and anti-whiplash head restraints and Hyundai is confident the i20 will achieve the more stringent 2009 five star NCAP standard once all models are fitted with electronic stability controls as of February.
Three door models will be available in the Spring priced from £8,195.
While the 1.2-litre Comfort is predicted to be the most popular, the i20 range will also include 1.4-litre petrol versions priced from £,9,495 and 1.4 diesels from £9,995.
Although the diesel will cost only £30 a year to tax and is capable of 64mpg, Hyundai reckons it will have limited appeal to the private buyer.
Performance, even from the more powerful 90bhp diesel version, is a relatively sluggish 13.6 seconds for the 0 to 60 while a lower powered 75bhp model will take more than 16 seconds.
It is the smaller engined petrol versions which have most appeal and with value for money paramount at the moment the i20 is a car which really will make an impression in the new car market.