Think the fact you only have £10,000 to spend on a new car isn’t enough to get anything decent? Think again. Even at the entry-level end of the new car market, there’s a wealth of choice out there – and ever-greater competition means the standard of cars at this level has never been greater.

The small car sector dominates at this price point. Not that this is something that should leave you feeling short-changed, because today’s city cars are remarkably well-rounded machines that take to motorways almost as happily as they tackle inner-city streets.

Here, we run through seven of our favourites. And, just to prove it’s not all sweetness and light at this end of the market, we also point out one car you most certainly should avoid…

7: Peugeot 108

Some of you may be aware that, for similar money, you can also get a Citroen C1 that’s all but identical to the Peugeot 108. Why do we recommend the Peugeot, then? Because it comes with more technology and offers buyers more opportunities to personalise the styling – often important considerations even at this end of the market.

Best buy: 1.0 Active 3dr

6: Vauxhall Viva

A name from the past, adorning a thoroughly modern little five-door city car from the big Vauxhall brand. The fresh-faced Viva rides well and drives nicely, and is powered by a super-smooth and eager 1.0-litre three-cylinder engine. There are niggles, though: rear seat space could be better and equipment levels of cheaper models are very miserly.

Best buy: 1.0 SE A/C

5: Suzuki Celerio

Small car expert Suzuki has shown just what a canny city car maker it is with the latest Celerio. Small on the outside but very roomy inside, the five-door city car is also fuel-efficient and well equipped. Even the entry-level 1.0-litre petrol engine is strong, making only the cheap interior something to grumble about.

Best buy: 1.0 SZ3

4: Seat Mii

One of the finest city cars on sale is also one that offers impressive value – but it’s the style aspect that Seat’s keenest to push with the Mii. You can get it both as a three-door and a five-door, although choosing rear passenger doors pushes the entry price over our £10k ceiling here. Luckily, even the cheapest 1.0 60 engine is decent in town and good on fuel.

Best buy: 1.0 60 Design 3dr

3: Volkswagen Up

You might be doing a double-take: yes, the Up is closely related to the Seat Mii. It’s similar to drive, although the interior does feel that bit posher in places – particularly if you choose the best-buy High Up trim. The new 1.0-litre TSI 90 turbo engine is impressive enough to shame cars costing half as much again.

Best buy: 1.0 TSI 90 High Up 3dr

2: Skoda Citigo

Yes, it’s triple-take time! The Skoda Citigo is also related to the Up and the Mii – and offers yet still better value. You get a car as talented as the others for less than either of them, meaning you can buy a desirable 1.0 60 SE with the added practicality of five doors for less than £10,000.

Best buy: 1.0 60 SE 5dr

1: Hyundai i10

Hyundai makes the best sub-£10,000 city car on sale in Britain. It’s compact, tall and has five doors as standard, while the interior is more spacious and refined than any rival. Recently updated, it now comes with even more standard kit, while the five-year unlimited-mileage warranty is another significant draw.

Best buy: 1.2 Premium SE

One to avoid: Renault Twingo

Don’t be lured by the pretty styling. Yes, the Twingo is impossibly cute to look at, but the on-road reality is comfort and refinement some way off the class leaders we’ve listed here. What a pity.