We review the Smart Fortwo from price to economy and all its features

THE new Smart Fortwo launched last year was a huge improvement on the model it replaced.

Although it was hard to spot the differences from the outside, it really was a big jump forward in every way.

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Little car, big improvements … New Smart Fortwo is miles better

Despite its cute appeal, the original had faults that put people off — the worst of which was a jerky semiautomatic gearbox that had the car lurching through the gears with all the subtlety of Kerry Katona's figure.

The steering and ride were poor while the handling and motorway stability were a long way from acceptable for anyone who even slightly enjoyed driving.

But the styling and basic concept of a small car with bags of character and a surprising amount of practicality for two were spot on and that's what owners loved. So designers did no more than tinker with the distinctive shape.

They tweaked the twin headlights and front grille and made minor changes to the rear lights — so it remained instantly recognisable.

The Fortwo was much improved inside as well, I still found the fabrics and plastics a bit lacking in quality. That's where the Limited Two edition really makes this Smart much more appealing.

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Smart all round … great new Fortwo

It's already based on the higher spec Passion model and gets a luxury interior with cognac brown leather heated seats, three-spoke leather sports steering wheel with gearshift, leather gear knob and velour floor mats with leather trim.

A rev counter and clock have also been added.

On the outside, Smart have given the limited editions a unique choice of paintjobs, special badging and sixspoke alloys. There are also three optional extras — electric power steering (£310), lockable glove box (£20) and Smart sound system with extra speakers, subwoofer and MP3 interface (£200).

The cockpit comfort is matched by its on road ability. But compared to the old model, have the Smart engineers delivered the ride and comfort to make it a proper car? The answer is yes, particularly the new five-speed clutchless gearbox that has an automatic mode selected by a button.

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I drove the Fortwo cabrio and it also has the option of using the gear lever for manual changes that are twice as quick and dramatically smoother, especially for daily city driving.

The steering feels more accurate, although it still understeers.

It's not a quick car and doesn't like to be pushed either and will only hit a top speed of 90mph — it is a city car after all.

Around town the ride comfort is fine and the Smart is now perfectly acceptable on motorways, particularly at the official 70mph speed limit.

The big question mark is the price. The Limited Two edition cabrio goes on sale on September 1 at a whopping £11,745 with all the bells and whistles, while the coupé starts at £9,525. That's a big leap from the starting price of £6,840 for the standard Fortwo — which is already £1,000 more than its fourseat city car rivals.

However, perhaps buyers might think it's a worthwhile initial outlay when you consider the long-term savings compared to its opposition. It's simply Smart all-round.