New Fiat 500 available for under £8,000 OTR

The new Fiat 500 will have a starting price of £7,900 when it goes on sale.

A new budget car from the Italian manufacturer, the Fiat 500 will go on sale in January.

While the 1.2 litre Pop model has an entry level price of £7,900, a highly specified Lounge version of the car will sell for £10,700 - including air conditioning and alloy wheels.

"There has been widespread speculation about Fiat 500 prices this year and we're delighted now to be able to reveal them," says Elena Bernardelli, marketing director, Fiat Group UK.

"We wanted to create a classless car for everyone, that was not just about being a well-known badge, and with this pricing structure I believe we have introduced a model to the UK that will be within the reach of a wide range of customers."

The car comes with a choice of three efficient engines - a 69 bhp 1.2-litre, a 100 bhp 1.4-litre petrol or a 75 bhp 1.3-litre multiJet turbodiesel.

There are also three trim levels, Pop, Sport and Lounge.

The entry level model comes with ABS, four airbags, radio/CD/MP3 player, electric windows and power steering.

The options list also includes ESP, glass sunroof, metallic paint and parking sensors.