Just like Kylie and Dannii Minogue the VW Lupo and Seat Arosa share much of the same DNA but one seems to grab the headlines more than the other. In the case of these two superminis it’s the cheeky little VW that has the biggest following.

Launched in Britain in February 1999, the smallest member of the VW family sits on chopped-down Polo underpinnings. At 11ft 7in long and just 5ft 5in wide it is certainly compact, although front-seat passengers will not feel cheated. A height-adjustable driver’s seat and steering wheel, plus a good range of adjustment fore and aft, give the car the feel of a larger model.

High-quality plastics and fabrics throughout the cabin complete the illusion and, provided you are looking forwards, you could be convinced you are driving a car from the next class up. Only when you cast your eyes towards the rear seat do you realise this is a very compact car. Get comfy in the front and the rear legroom disappears. You’re better off considering the Lupo as a two-seater with a rear seat that more often than not will be used to supplement the small boot.

On the road the car’s short wheelbase is soon apparent and over poor surfaces the ride is choppy. Get on smooth motorways and the situation improves, provided you’ve plumped for an engine that can keep up with the traffic. There is a broad range of power to choose from, starting with the entry level 1 litre engine producing 50bhp and culminating in a 125bhp 1.6 litre GTI petrol model. In between there are a brace of 1.4s. The 1.4 petrol comes with 75bhp or 100bhp (in the Sport model), the 1.4 diesel Sport produces 75bhp. There’s also a 1.7 litre diesel with 60bhp on tap.

Unless you restrict your motoring to urban adventures then the 1 litre models are best avoided — the economy (around 50mpg in mixed motoring) may look appealing but the effort required to keep the car moving soon becomes tiresome. Similarly, the 1.7 litre diesel lacks the torque and acceleration that many supermini diesels now offer (although its economy will approach 60mpg).

It’s the 1.4s that get my vote. The petrol is smooth and eager in either form, and while the diesel is a little less refined, it’s super-economical and satisfyingly torquey. With second-hand prices for the petrol and diesel Sport derivatives virtually identical it is a case of pay your money and take your choice.

Equipment levels are reasonable but not exceptional across the range. ABS brakes came as standard only on the Sport and GTI models.

Overwhelmingly, car buyers chose the Lupo over the cheaper and better equipped Seat. The Seat cost around £1,000 less than the Lupo when new and is now around £1,750 cheaper. Much of that premium is explained by the Lupo’s twin headlamp design, which gives the car a prettier face, together with the VW badge, which adds status.

Running a Lupo should be reasonably cheap. Servicing can be easily managed by a non-franchised dealer and with a 12-year corrosion guarantee, courtesy of the galvanised body, it should stay looking cute well into the next decade.

• Boot space The boot offers just 130 litres of space but the split-fold rear seats can liberate extra room — provided you don’t have to carry rear passengers

• Power steering Standard on all models from January 2000

• ABS An option only on all but the Sport and GTI models

• Door hinges Front door pins are prone to failure and can be expensive and fiddly to repair

• Engine Timing belt tensioners can fail on the 1.4 16V petrol engine so check they have been replaced on higher mileage examples

• Safety Lupo scores a respectable four stars in the Euro NCAP safety tests

• Bodywork Galvanised body panels endow the car with a 12-year corrosion warranty

• Stereo A good-quality stereo was a standard fit on all models but it is a cassette player, not a CD head unit

• Cabin Swimming pool-blue backlit dials give the cabin an upmarket feel

• A 2002 52 Volkswagen Lupo 1.4 TDI Sport with 60,000 miles. Pay £4,995 at a franchised VW dealer or £4,250 privately

‘Trade’ is what a dealer would pay to buy your car; ‘retail’ is what you would pay a dealer. Multitronic and tiptronic models fetch about £800 more than manuals

Alternatives

Figures based on CAP December 2005 edition

 © Jason Dawe Productions Limited October 2006