Fiat has been busy dividing its line-up of vehicles into two distinct camps - ‘rational’ and ‘emotional.’

On one side of the fence are the lifestyle models, including the growing 500 range and the exciting new Fiat 124 Spider.

On the other side, you’ll find cars that are based on functionality and value for money, including the all-new Fiat Tipo, tested here.

The Tipo is the Italian car maker’s latest family hatchback, and the car is clearly designed to offer good value for money.

The first thing you notice when you get inside the Tipo is that it’s exceptional roomy for a hatchback.

Indeed, it’s capable of accommodating three six-feet-plus adult passengers in the rear - thanks to class-leading legroom and excellent headroom.

It’s dimensions - 4.37m long, 1.79m wide and 1.50m tall - were especially useful on a festive family day trip from Yorkshire to London and back, with the car offering great comfort and refinement for a vehicle in this class.

Its boot capacity is also claimed to be best-in-class, with a volume of 440 litres.

On the move, the Tipo serves up a smooth driving experience.

The soft suspension combines with a very comfortable driving position to create a relaxed feel.

The handling is pretty true, with nicely-weighted steering giving an element of confidence to the driver.

However, you do notice a bit of body roll in the tighter bends.

Meanwhile, the chassis seems to smooth out all but the very worst bumps on minor roads.

UK buyers get a choice of petrol and diesel engines and, as well as the hatch bodystyle tested here, there’s an even more roomy estate version available.

The 1.6-litre MultiJet Turbo Diesel version produces 120bhp and 320Nm, offering brisk acceleration and feeling adequate for most everyday situations.

At motorway speeds, its pulls comfortably and seems to use very little fuel.

If you rev the engine hard, the noise is significant, but the engine note remains in the background when the car is driven more gently.

In terms of looks, the Tipo’s styling is smart and understated. Distinguishing features include a sporty, wide grille, flanked by narrow headlight units.

There are also numerous flowing lines which give the car a sharper look.

In many respects, its appearance is relatively attractive but not especially memorable.

Inside the cabin, the materials are robust, although there are plenty of harder plastics on show.

For the driver’s convenience, there are numerous cabin compartments with a variety of shapes to store personal objects, smartphones, game consoles, bottles and coins.

There is also a handily-located USB port for charging and connecting devices.

The dashboard is well laid-out, with the driver able to reach the secondary controls without having to take their eyes off the road.

Another plus point is the visibility, which is easily as good as any of its rivals, if not better.

Its thrifty running costs - notably fuel consumption of just over 76mpg on the combined cycle - are bound to add further appeal to an already-competitive vehicle.

The fact the Tipo is available at such a competitive price is partly because it is manufactured in Bursa, in Turkey, at a plant known for its high-quality and cost-effective production.

If you’re looking for a spacious hatch on a budget, the range starts from just under £13,000.

Of course, the Tipo is aiming for success in a highly-competitive segment, aiming to overcome rivals such as the Volkswagen Golf, Ford Focus, Vauxhall Astra and Renault Megane. However, it’s not hard to see how its combination of design, perceived quality, comfort and versatility propelled the Tipo to the prestigious Autobest ‘Best Buy Car of Europe’ in 2016.

The lowdown

ENGINE: 1.6 MultiJet II Turbo
Diesel 120hp
PRICE: £16,995
TRANSMISSION: Six-speed
manual gearbox
ACCELERATION: 0-62mph in 9.8
seconds
TOP SPEED:124mph
ECONOMY: 76.3mpg combined
and 98g/km emissions

Will's Ratings

PERFORMANCE: ****
ECONOMY: *****
RIDE/HANDLING: *****
SPACE: *****
EQUIPMENT: ****
SECURITY: ****
VALUE: *****
OVERALL: *****