Five of the Best Tax-Busting Cheap City Cars

CO2: 99 g/km

Price: £11,295.

The Fiat Panda might not have the most badge prestige on the city car block or the most dazzling looks, but the overall package it offers is really rather good. The range kicks off with the 1.2 Pop which costs £8,945, but while that engine is good, its CO2 output of 120 g/km leaves a lot to be desired.

For this reason, I recommend the 0.9 TwinAir model, which just qualifies for free annual tax.

The 0.9-litre engine is turbocharged and delivers its maximum torque of 107 lb /ft low in the rev range - this gives the Fiat Panda lots of flexibility, and the car has the potential to return up to 67.3 miles per gallon if driven conservatively. Lounge trim is second to top on the totem pole, with models boasting it benefiting from sportier looks and solid equipment.

Standard kit in the Fiat Panda 0.9 Twinair 85 Lounge includes air conditioning, heated electric mirrors, and MP3 / iPod connectivity.