A short personal anecdote first. While catching up with an old motoring media colleague in Melbourne a while ago, I lamented the steady decline of the traditional large car, pointing out just how accomplished they are for long drives across a big country.

After taking another sip of his coffee, my colleague said Australian society had changed. He said to take a look around. What most people needed was something easy to park in urban streets, comfortable and convenient for trips around town and inexpensive to run. The longest trip many of them would make was to the airport to fly out to Milan or London. The fact is, he was right.

It was with this in mind we took the little Fiat 500 Pop from Peter Stevens this week. 

The Fiat is indeed small although not nearly as tiny as the classic Fiat 500 of the 60s and 70s. In fact the new 500 is more than half a metre longer, 30cm wider, and 70 per cent heavier than its spiritual ancestor.

That said, the little Italian is still one of the two or three smallest cars on the market.

The 500 Pop is powered by a 1.2-litre inline four, which is good for 51kW of power and 102Nm of torque. That might not sound like much but the engine is more than twice as large as the 500cc unit which powered the original Fiat 500 and it doesn't have to push around a lot of metal. The default transmission is a crisp five-speed manual ideally suited to the car.

Driving around central Ballarat, the Pop is nimble in traffic and delightfully easy to park. 

We popped out onto the open road and found it perfectly capable. On the Western Highway it buzzed along comfortably at 110kmh with 3000 revs showing on the tachometer, so trips down to Melbourne are no great stretch. It also handled a longer trip up to Maryborough along some wet and windy roads with ease.

The cockpit is intimate but not cramped for the driver and front passenger, although there is limited room in the back. For a tall adult, the rear seats would be just a little too cosy for anything other than a short trip.

The layout of the interior is also appropriately retro: elegant, neat and easy to use. Controls are well laid out and feel nice and solid. The look is far more interesting and individual than most cars of a similar size. 

Most importantly, the little Fiat feels very well put together and has all of the appropriate safety features. It is cheap to run and relatively cheap to own. 

For those whose lifestyle revolves around town with trips down to a nice Italian restaurant and the odd drive out to the country, the Fiat 500 Pop is all the car they will ever need.

* Your local dealer is Peter Stevens Fiat Alfa Romeo, phone: 5336 8777 

Fiat 500 Pop