IF you are looking for a new car with a decent level of equipment and trim and a price tag under £10,000 you will find that the cupboard is almost bare.

One of the handful of remaining cars that fit the bill has an old name but is a new car. Vauxhall wants a slice of the growing affordable city car market and its new Viva undercuts the likes of Toyota’s Aygo and Skoda’s Citigo.

Vauxhall’s modern-day Viva is positioned below the firm's Corsa and priced to appeal to cost-conscious buyers seeking a practical and functional ownership experience.

That said, there’s no evidence of sackcloth seat upholstery in the Viva. Vauxhall is keen to impress that its new small car is anything but a compromise. There's leather to be found on the seats and steering wheel in the SL model tested here, plus the company's OnStar system, which includes a high-speed 4G LTE mobile wi-fi hotspot for up to seven devices, emergency response notification and stolen vehicle recovery technology.

Smartphone users are also able to connect their vehicle remotely with the OnStar app, called ‘MyVauxhall’. The app allows you to contact OnStar, view vehicle diagnostics, remotely lock and unlock the car, locate the car, honk the horn and flash the lights as well as downloading destinations to the in-car navigation system.

Power comes from the firm’s recently introduced 1.0-litre, three-cylinder petrol motor, while the five-door layout means rear space is useable.

If you need more space, you will probably look to the Viva's bigger brother, the Corsa, and if you want more style, then the Adam city car will be the one to choose. But the Viva will tick a lot of boxes for drivers seeking a small car.

The easy-on-the-eye yet stylish exterior package, with plenty of familiar Vauxhall design cues, is complemented on the inside by a functional yet attractive cabin complete with fuss-free fascia.

Competition in the city car market is fierce, yet the Viva’s five-door layout should appeal to buyers seeking a little more practicality. At the rear, the car’s small boot is what you might expect for something in this sector, but the rear seats - with surpringly decent legroom - fold to increase versatility.

Although on paper the 1.0-litre, 75PS petrol engine might appear weedy, the car will happily keep up with urban traffic and rarely struggles away from the city limits. You’d be advised not to be in hurry, but the payoff is a decent ride, slick manual gearshift and confidence-inspiring steering.

There's a tell-tale thrum from the three-cylinder unit at start-off, and plenty of fizz once you have picked up momentum, but the modest power means more gear changing to cope with situations.

Visibility is good and Vauxhall’s also done a sound job nailing the cabin ergonomics. And thanks to its modest dimensions parking is a breeze. Usability is key to attracting buyers, and the Viva’s ease of use that’s likely to continue to be appreciated long after the new car smell has gone.

Vauxhall’s headline-grabbing sub-£9,000 asking price for the entry-level Viva is also appealing, but you’d be wise to move up a trim level to access better entertainment kit and air con. Still, the base SE could hardly be viewed as poverty spec thanks to its six airbags, alarm, cruise control, heard mirrors and split-fold rear seats. The SL grade adds USB and Bluetooth audio connections, alloy wheels and climate control, plus a host of extra features to make you feel good about your purchase.

If you’re a fan of function over form and the current crop of style-led city cars leave you cold then the Viva is the car for you. It’s well equipped even in entry-level SE trim, but particularly in SL specification, and is both spacious and practical enough to perform well outside the safe confines of the city limit. Frugal and promising low ownership costs, the Viva is unlikely to be a strain on your wallet, too.