What is it?

Fiat's retro city car is both a tribute to the original Cinquecento - which turns 60 in 2017 - and a modern icon for the Italian brand. It's classic style has proven successful and spawned the larger 500X SUV (and 500L small car in overseas markets) forming the cornerstone for the brand.

Despite its diminutive size, it's positioned at the higher end of the city car market, in terms of price, and competes as a stylish alternative to the better value mainstream minis like the Mazda2, Kia Rio and Toyota Yaris.

There is also a range of high performance Abarth models based on the 500, but we'll focus on the regular models for this review.

How many models can I choose from?

Fiat offers the 500 in two different bodystyles, the regular model and the 500C, the most affordable convertible on the market today.

Both the 500 and 500C have matching line-ups with Pop and Lounge models powered by a 1.2-litre four-cylinder petrol engine producing 51kW/102Nm.

It comes standard with a six-speed manual transmission but you can option a five-speed robotized manual for an additional $1500.

What do they cost?

500

Pop - $17,990

Lounge - $19,990

500C

Pop - $21,990

Lounge - $23,990

Any options that I need to know about?

There are lots of personalisation options you need to know about. Style is key with the 500 so Fiat offers a range of alloy wheels, stickers, side badges, seats and even key covers to make your 500 your own.

Is it expensive to own?

It is more expensive than your average city car. Although it is covered by Fiat Chrysler Australia's Mopar capped price servicing program the costs are high er than average for the city car class. Over the first three years you'll pay $1141.48 for your first three visits to the dealership.

Any issues I need to know about?

Fiat may not have a great reputation for reliability but the latest 500 seems to have turned a corner for the brand. We aren't aware of any major, long-term problems with the little car.

Which is the most economical model?

Not surprisingly the small engine is pretty good on fuel, sipping just 4.8-litres per 100km. If keeping your fuel bills down is top priority, pick the Pop.

Which is the safest model?

This is where the 500 is starting to show its age (the car has been on sale since 2009 without major mechanical changes) with none of the latest active safety equipment available. So that means no autonomous emergency braking, no forward collision warning, no blind spot monitoring and no rear cross traffic alert - even as an option. Cruise control is standard on the Lounge model though.

Instead safety is limited to full airbag protection for all passengers plus the usual stability control and anti-lock brakes. Both the Pop and Lounge models are as safe as each other, but there are better-equipped small car alternatives when it comes to safety.

While the engines may be modest in terms of performance, the small size of the 500 means they feel zippy enough on the road. The 1.2-litre does, however, need to be revved to get the best out of it because it feels a touch lazy at low revs.

To get the best the engine we'd recommend sticking with the standard six-speed manual. While manual transmissions may not be favoured in Australia it is the preferred option in the 500 because not only is it a nice gearbox, with a smooth action, the 'automatic' option is no good.

The five-speed robotized manual may offer a two-pedal set-up that looks like a traditional auto, but it's, as the name explains, a manual gearbox that changes gears via computer control. So it generally offers jerky shifts and requires a unique driving style; in effect you have to drive it like a two-pedal manual, as you have to pre-empt the shifts and lift off the throttle to smooth out each change.

As for how it drives, again there's not much to choose between the Pop and Lounge. Both offer light but responsive steering and nicely balanced handling, for a city car. It's not class-leading by any stretch but it rides well for such a compact car.

Should I buy one now?

Obviously end of financial year sales are over now, but Fiat is currently offering drive-away deals on the 500/500C. You can get into a Pop manual for $19,000 and a Lounge manual for $21,000, while the 500C Pop can be had for $23,000.

Where's the sweet spot?

While there isn't much differences, mechanically or safety-wise, to split the Pop and Lounge, our preference is to go for the better-equipped model. The Lounge manual is the Sweet Spot in the range, offering all the style you're after and the best on-road performance.

• For more information, visit our Fiat showroom.