I stood with Peter, who delivers many of the cars I test, and we looked at the 500 just after it had come off the trailer. Now, I like to think that we're both manly men, able to discuss beer and football for hours on end (or at least we would be if I had any interest in either), but something about the little Fiat had clearly pointed us in the direction of fluffiness. "You just want to hug it, don't you?" I can't remember which of us said this - a phrase which I don't think either of us had ever used about a car before, and would not expect to again - but I do know that the other agreed immediately.The 500, if you didn't already know, is a throwback to a previous model in the same way that the MINI and the Volkswagen Beetle recalls earlier cars with the same name, and the Chrysler PT Cruiser more generally refers to 1930s American cars which were converted into hot rods after World War II.It was of great help to Fiat that the 500 of half a century ago was perhaps the cutest mass-produced car in the history of the motor industry, but even without that advantage I'd have to say that the designers have done a superb, possibly unrivalled job of giving a 21st-century car the flavour of a familiar classic.I expected everyone I knew to fall in love with the 500 as soon as they saw it, and most of them did - occasionally to the point where it seemed that a change of underwear might be advisable. Others were less convinced, and I suppose this is one of those cars which you either "get" or you don't. Fair enough: I would happily spend hours surrounded by kittens, but wouldn't walk five yards out of my way to see a puppy, yet plenty of people have the opposite opinion, which they're welcome to. So with the 500 - some will be indifferent to it, others will think it's a masterpiece.The 500's visual character is as important as it is successful. To some extent it doesn't have to be a particularly good car, at least to anyone who thinks that the looks justify the purchase. If you look at it in a detached manner, though, it is indeed a good car. I've been critical of several Fiat models in the past (resulting in a suspicion that I've fallen out with members of the company's PR department, which isn't true at all), and if I thought the 500 was a failure beneath its exterior charm I would say so.But no. It has many very good points, and the bad points aren't too bad - or at least I would be prepared to live with them in return for having such an appealing little car parked outside my house. (Ah, you see? It's so difficult to avoid returning to that theme.)Foremost among the good points is the fact that in 2007 the 500 became the smallest car tested by Euro NCAP to score five stars for adult occupant protection. That couldn't have happened without some really serious engineering, though it has to be said that the child occupant and pedestrian protection ratings were greatly inferior - you wouldn't want to land on the bonnet if one of these things ran into you, for example.There is, however, a great feeling of solidity to the 500. Everything feels properly constructed and well put-together; there's no hint here of earlier small Fiats which seemed as if they might break in half if the wind changed direction too abruptly. And there's plenty of equipment: the test car came in the range-topping Lounge trim level, so it had 18-spoke 15" alloy wheels (with - hurrah! - sensible-profile tyres on them so as not to harm the ride), extra chrome, a 50/50 split rear seat and a few other bits and pieces not available as standard on the Sport and the entry-level Pop.The Lounge and the Sport share the Blue&Me handsfree system which includes Bluetooth capability, voice recognition, a digital audio file player and steering wheel-mounted controls. This system has become common in the Fiat range, though I can't help thinking how utterly outlandish it would have seemed when the original 500 went on sale in 1957, or even when it went out of production in 1975.The interior - which is nearly as triumphant a piece of design as the outside - looks great, comes in a wide range of colour combinations, has very supportive seats and offers loads of room even for tall front occupants. There's much less room in the back, and with a capacity of 185 litres the boot isn't particularly useful, but if you rarely carry passengers and don't need to cart a lot of luggage around the place these things are not going to be a problem.Less forgivably, the steering wheel isn't adjustable for reach, which makes it difficult to find a truly comfortable driving position, and the rear visibility is absolutely terrible.At present, there are three engines in the 500 range. You can choose between 1.2- and 1.4-litre petrol units, but the test car had the third option of the excellent 1.3-litre Multijet turbo diesel. With just 75bhp available in the form used here, the Multijet isn't particularly strong, but it's certainly economical, with an official combined figure of 67.3mpg and a corresponding CO2 rating of 110g/km which leads to low annual Vehicle Excise Duty and a smile on the face of the present Mayor of London.The 500 is small enough for noise suppression to be a bit of a problem, and there's no doubt that Multijet makes its presence felt constantly (though there's a school of thought which states that it's a better choice than the quieter petrol engines for precisely that reason, since it recalls the gruff and unrefined clatter of the original 500).The lack of size also creates an issue of ride quality; there's a bounciness to the front end which is the inescapable result of fitting a heavy engine in the nose of such a short car. It's bearable most of the time, but you want to watch out if you're travelling quickly over a series of bumps.I don't think the suspension people could have done much about that, but it's obvious from the situations in which the car's basic layout was less important that they have done their work well. On fast but twisty roads (ones without too many bumps, at least) the 500 is splendidly sporty. It doesn't do much in the way of acceleration between the bends, but it behaves very nicely through them, with decent turn-in followed by a nice balance across the apex as the rear easily and unfussily mimics what the front has just done.Peter didn't come to collect the 500 at the end of this test; John did that instead. "I'll be coming for it on Wednesday morning," he said on the phone. I tried to persuade him not to bother, and to leave the car with me for as long as possible, but he made it very clear that that was more than his job was worth. Pity.There are a few things to complain about with the 500, but in most ways it's a very good little car, and - to me anyway - by far the best looker in its class. And the fact is that I want one. Engine 1248 cc, 4 cylinders Power 75 bhp @4000 rpm Torque 107 ib/ft @1500 rpm Transmission 5 speed manual Fuel/CO2 67.3 mpg / 110 g/km Acceleration 0-62mph: 12.5sec Top speed 103 mph Price From £11219.00 approx Release date 21/01/2008