Why, when a near identical Citroën C1 would cost less, would anyone choose a new Aygo? This had to be one of the questions asked during the planning phase for the baby Toyota. And, in response, arguments about Toyota’s superior quality and reliability were surely put forward by the marketing bods. Until the car hit the streets no one really knew quite how buyers would react.

Three years on and both sales and residual values speak for themselves. The Aygo is the most desirable of the trio of superminis that also includes the Peugeot 107, all produced at the same plant in the Czech Republic. Launched in March 2005, just ahead of its rivals, Toyota dealers had three months of selling time before the Citroën and Peugeot hit the market. With just one engine option and two trims, the VVT-i and VVT-i +, potential Aygo buyers had few difficult decisions to make. The 1 litre three-cylinder engine put economy before performance.

With just 68bhp but plenty of character, it loves to rev and when nipping between the traffic it gives the impression of terrific pace while maintaining only modest speed. But take the Toyota out of the city and that buzzy engine note becomes intrusive on motorways. Although engineered to a strict budget the Aygo flatters buyers with a respectable list of standard kit. The entry level VVT-i enjoys twin front airbags (the passenger side can be deactivated for child seats), antilock braking with electronic brakeforce distribution and a CD player with MP3 compatibility. For around £400 more, a used + model gains electric front windows, split-fold rear seat, side airbags, Isofix child seat attachment and remote central locking.

A Sport model, introduced in July 2005, may have no extra power but the attractive alloys and trendy rev counter do the trick for most buyers; although, disappointingly, air-conditioning still remained an option. At just 11ft 2in long the Aygo is 11in shorter than a BMW Mini but its “long” wheelbase and tall body style offer a surprising amount of space. Front seats will easily accommodate a pair of six-footers, while the steering wheel, which is adjustable for height and reach, ensures the driver is comfortable. Rear seats are compromised in such a compact car but short journeys are perfectly realistic provided your guests are good humoured.

Toyota’s innovate engineering is well expressed in the Aygo. The tailgate is a simple glass panel, reducing weight while still ensuring the car has good structural strength. The downside is a high loading lip, but with the Aygo unlikely to be bought by those seeking regularly to carry large, heavy loads this is unlikely to be a problem. The cabin abounds with additional storage space, making the Aygo a small car with a capacious interior.

Of course the Aygo is all about economical motoring and with a great little diesel engine on offer from Citroën it was only a short time before Toyota put it in the Aygo. Producing just 54bhp but with the potential for fuel economy approaching 70mpg, the diesel Aygo instinctively seems the one to buy. But think long and hard: secondhand diesel Aygos command a premium and your fuel will cost you more. Consider that the diesel models achieve only around 7mpg more than an equivalent petrol one and you can see that buying one may not represent any real saving; a conclusion that Toyota also drew when the diesel was discontinued from sale in 2007.

Despite being built to achieve a low list price, when you drive an Aygo you never feel short-changed; just like the original Mini, it’s an inexpensive car that presents no shame for even the wealthiest of owners. Leave the Bentley at home and take the Aygo to the rail station car park and no one is likely to comment.

That is the Aygo’s greatest achievement. Not only has it remained distinctive from its Citroën and Peugeot rivals, it has become the most desirable of the trio, and for many secondhand buyers it could represent a cheap, reliable and cool motoring solution.

Bodywork Extensively galvanised, the Aygo comes with a 12-year antiperforation warranty

Boot The 139 litre boot is par for the supermini segment, growing to a very useful 751 litres with rear seats folded

Bumpers Composite material used in bumpers is very resilient and can reform after an impact, disguising damage behind, so check the car carefully

Diesel engine Whining and whirring sound from the 1.4 litre diesel unit can signal a timing belt tensioner problem, get it to a dealer urgently

Gearbox Standard five-speed manual with optional MMT (multi-mode manual transmission), a clutchless alternative, available on some petrol models

Power steering Electric power steering comes as standard

Rear windows Pop open rather than rise and fall within the door frame

Safety The Citroën C1 scored four stars for both adult and child occupant safety in the Euro NCAP tests, putting it among the best in class. Euro NCAP says it expects the Aygo to have the same ratings

Tailgate Glass rear screen looks good and reduces engineering costs but leaves a high loading sill

Vital statistics

Values Model Toyota Aygo+ 1.0 VVT-i 3dr

Engine 998cc, three cylinders

Power 68bhp Transmission Five-speed manual

Fuel 61.4mpg (combined)

Acceleration 0-62mph: 14.2sec

Top speed 98mph

CO2 emissions 108g/km

Road tax band B (£35 for 12 months)

Cost new today £7,450

The one to buy

A three-door 2006 06 Toyota Aygo+ 1.0 VVT-i with 20,000 miles on the clock. Pay £5,350 at a dealer or £4,950 privately

Mileage 10,000 20,000 40,000 2005 05

Trade £4,025 £3,775 £3,325

Retail £4,995 £4,750 £4,295

2006 06

Trade £4,600 £4,325 £3,825

Retail £5,625 £5,350 £4,850

2007 07

Trade £5,200 £4,875 £4,300

Retail £6,275 £5,950 £5,395

Or for similar money

2005 55 Smart Fortwo Passion auto 2005 55 Renault Clio 1.2 Extreme 3dr 2006 06 Peugeot 107 Urban 3dr 2006 56 Nissan Micra 1.2 Initia 3dr 2007 07 Citroën C1 1.0i Vibe 3dr