Oh, what a year! It certainly started better than it finished for the motor industry, but it has seen the launch of some stunning new cars. The fact that several of these cars of the year are small, economical, city cars is perhaps indicative of these turbulent times.

Car of the year...Ford Fiesta

Who would have guessed that the old Fiesta would be reborn in such style? Ford’s supermini went down a storm when it was unveiled earlier this year, and many believe it should have been crowned European car of the year (Vauxhall’s new Insignia won it).

At a time when many customers are downsizing, Ford was well placed with Fiesta and the new Ka (due on sale in January) which are hi-tech, appealing, and highly fuel-efficient vehicles.

The all-new Ford Fiesta is not just the most dramatic and distinctive Fiesta ever, it also marks a significant landmark in Ford’s history.

Since the first Fiesta was launched in 1976, more than 3.4 million have been sold in the UK, proving the enduring popularity of the model’s style, efficiency and value for money.

Fiesta starts at £8,695 and spans 1.25 to 1.6 litre engines.

It’s my car of the year, just edging out the Fiat 500.

Fiat 500

At last. A really desirable Fiat.

OK, that’s a little harsh on Fiat considering the Grande Punto and new Panda are breathing new life into the brand.

But it’s the 500 which is really doing the business for Fiat, offering MINI-like qualities for nearly half the price.

The 500 range stunned customers and industry commentators alike when it was launched with an entry-level price of just £7,900 for the 1.2-litre Pop in January. The list price rose to £8,100 in the summer. However, the new VAT tariff of 15 per cent means that the price has dropped again, to £7,929.

“It has been praised for its style, eco-friendliness, road manners and economy,” says Elena Bernardelli, marketing director, Fiat UK.

“Now the Fiat 500 has reaffirmed its terrific value for money with this latest list price.”

Vauxhall Insignia

Who would have thought it? Car of the year – a big Vauxhall.

In a year when small was beautiful, the Insignia surprised everyone by becoming European car of the year.

In one of the hardest-fought contests in recent years, Vauxhall’s Insignia has taken the honours, polling an impressive 321 votes.

The 59-strong jury of senior motoring journalists from 23 European countries voted the Insignia first, with the Fiesta and Volkswagen Golf coming in second and third respectively.

Steve Cropley, editor-in-chief of Autocar, COTY’s British-based sponsoring magazine said: “We are delighted to be able to deliver good news at such a tough time. The market’s the toughest we’ve seen for 20 years, but nothing alters the fact that the Insignia is a great car...it deserved to triumph, and it did.”

Vauxhall unveiled the Insignia at this year’s British International Motor Show, where its sporty silhouette, class-leading aerodynamics and innovative technology earned it praise from customers and media alike. It costs from just under £16,000.

Volkswagen Scirocco

There’s nothing like nostalgia! MINI and Volkswagen Beetle proved that long ago.

Now the new Volkswagen Scirocco is back on the market.

It’s competitively priced at just under £21,000 and it has looks which blend the memories of the old Scirocco with a very modern appeal.

There is just the one model, a 2.0 litre petrol, which is a shame. I imagine a potent diesel would go down very well indeed.

It is sleeker than the Golf, on which it is based, and much more desirable. If you wanted to be critical you would question rear headroom and the compact boot, but then no-one buys a coupe to be practical.

Toyota iQ

The Toyota iQ is certainly innovative. When you see one for the first time, it’s bound to leave a lasting impression.

In fact, I’ve bent the rules to include it in the list of cars of 2008 because it doesn’t officially hit the streets until early January.

It was conceived before the recession was upon us, but it is certainly a cost-effective car which may do well in constrained times.

The iQ is a small car but it is well-equipped. It has anti-lock brakes, Electronic Brakeforce Distribution, Brake Assist, a stability system traction control as standard.

It is the world’s smallest four-seater car, and VAT reductions make the Toyota range even better value for money. It starts at £9,295.

The iQ won the 2008 Japan Car of the Year award. The judges praised the iQ for its space efficiency and design, particularly the iQ’s capacity for seating four people within a body less than three metres long, as well as its combination of high levels of safety and low CO2 emissions.

Audi R8 5.2 litre V10

OK, not everyone can splash £100,000 on a sports coupe, but if you ever do win the Lotto (or become a fourth division footballer) the R8 is the sensible option.

Not that a car which costs the price of a house is ever really sensible, but the R8 is certainly more car for your money than you might get from Ferrari, Porsche or possibly Jaguar.

It comes as a 4.2 litre model at £78,195, which has been around for a couple of years now but there is now a super-powerful 5.2 litre V10 on the way at just under £100,000.

You would be advised to stick with the cheaper version for it does everything you could want, but if you want the ultimate sports car, then the V10 is extraordinary. It is a supercar but it’s easy enough to drive for it to be an everyday car. I wish.