The recent launch of the all-new Ford Fiesta has seen an upsurge of interest in it as a used car. Which comes as no surprise because in the four years it has been on the Australian market it has carved out a neat little niche for itself.

After years of importing the Festiva small car from South Korea, Ford made the very smart move of switching to its European branch of Ford as the source of the Fiesta. Imported from April 2004, the car has already built up a reputation amongst those who look on driving as a pleasurable experience, not simply a chore.

These people love the on-road feel of the Fiesta, marvelling at its sharp handling, good ride and the ability of the car to communicate its feeling through the steering wheel. Australian drivers have long liked European machinery and Ford was able to provide one of its best small cars to these people without charging an excessive premium over the cost of a car sourced from Asia.

Ford Fiesta’s styling is neat and fresh, a further example of Ford’s ‘edge’ styling that first appeared in the mid-90s and which still looks fresh today.

Fiesta is sold as a three-door or five-door hatchback. There are no sedan or station wagon variants on offer. Even in five-door format it has a sporty look, though it has to be said that the smart appearance of the three-door gives it real appeal to the sporting driver. Entry to the back seat of the three-door isn’t too difficult, so kids can be carted on a routine basis, but if you’re thinking of using it to carry adult friends you may be best advised to stick to the five-door. Once in the back seat, occupants will find it reasonably spacious. The front seats are larger than average for a car in this class and are reasonably comfortable, though some may find them on the firm side in the traditional German manner.

The Fiesta comes in three variants, all with the same 1.6-litre engine and drivetrain options. The LX is available with either three or five doors, the semi-sporty Zetec comes only as a three-door, while the Ghia is only sold as a five-door as befits its upmarket aspirations.

June 2007 saw the introduction of a very special model to the Fiesta range. Fiesta XR4 is a genuine hot hatch, not just a dressed up pretender. The front of the three-door body has a lower spoiler, and there are stylish side skirts and a rear diffuser. Inside, there are sporting seats with leather bolsters. The dash has coloured inserts to match the trim shades and the instrument dials are done in a neat white-on-black scheme with a real sporting flair.

The XR4's big Duratec 2.0-litre engine makes plenty of mumbo that really sparkles in a light car like this. Some will be disappointed that the only a five-speed gearbox is used. However, it has nicely chosen ratios and the change action is slick and positive. The XR4 has lowered suspension and rides on Pirelli P-Zero tyres. Ride comfort is good for the hot-hatch class.

These small Fords are laid out in a routine manner so the good home handyperson can do a fair bit of their own work. The underbonnet area isn’t any more cramped than in the average small car, which means access to some areas can be awkward – stand by for blood on the knuckles…

Insurance premiums are about average for the small car class, which makes them pretty reasonable for a fully imported European car. Some companies may charge more for the XR4 hot-hatch but others don’t really differentiate provided the driver has a good on-road record.

Ford Australia introduced an all-new Fiesta to Australia in December 2008. With a completely different slant in the styling department to the just superseded model it seems sure of success in the ever-tougher new-car sales race. Naturally these aren't on the used-car scene at this stage, but it may be worth keeping an eye out for early-release demonstrators as dealers are very keen to find customers in these hard economic times. However, be aware that these near-new cars will be traded later as 2008 models even if you bought them

WHAT TO LOOK FOR

Fiestas are holding up well during their relatively early days in Australia with no inherent defects that have come to our notice. We don’t anticipate any problems but be aware that European made cars aren't quite to the near-immaculate standards of Japanese ones.

Look over the interior for signs of damage, the back seats may be the first to suffer if bored kids have been stored back there.

Rust isn't going to be a problem unless a car has been poorly repaired after a crash. Look at all the lower body areas to be on the safe side. If you do see any problems either call in a professional, or find another car.

Make sure you get a Fiesta with an engine that displays easy starting and smooth idling characteristics.

Listen and feel for a manual gearbox that hesitates or crunches during fast changes.

A Fiesta XR4 that has been hammered is one well worth passing up on… Look for uneven tyre wear, changes to the suspension, an excess of over-the-top accessories and additional instruments.

HOW MUCH?

Budget on spending from $7000 to $11,000 for a 2004 Fiesta LX three-door; $9500 to $15,000 for a 2004 Ghia; $11,000 to $16,000 for a 2006 Zetec three-door; $12,000 to $17,000 for a 2007 Zetec five-door; and $13,000 to $19,000 for a 2007 Ghia.

CAR BUYING TIP

Shop around for insurance and finance with as much care and attention as you do the car itself.