Peugeot 206..... ...handle like a car far more expensive and you should be able to pick up a new one pretty cheap due to the 207 having been released not long ago. Plus very roomy for a car of that class.
really? I drove a 106 for 4 years, ran it into the ground, only thing I ever had to do was replace the clutch, unsurprising due to the age of the car and my youthful driving. My mum had a 106 and now drives a 206, again, no problems at all. I've had a whiz round in it and was very impressed with the feel, handling etc. Only minor criticism was I didn't like the position of the handbrake, but overall a great car for the money imho.
RE: really? My dad had a 206 and never had problems with it, and now my sisters has one and no problems.
Skoda Fabia 1.9TDi Nippy, economic on the fuel, and essentially it's Golf part but the internal trim isn't as high a quality ... but then it costs a damn sight less.