Fiat Panda (2004 – 2012) Review

The second-generation Fiat Panda not only outshines its older and younger siblings, but also pretty much every rival, making it one of the best city cars of its era. As our Fiat Panda review explains, it may be the only used small hatchback you’ll ever need.

The Mk2 Fiat Panda is more well-rounded than its utilitarian Mk1 predecessor in every sense.

It pulls off the neat trick of wearing four doors with ease, which even today many of the best city cars fail to do. It has an unusually tall glasshouse, removing all feelings of claustrophobia from the cabin.

And its chubby, vertically-cut rump not only introduced vertical tail-light clusters to the world, but also keeps the car’s overall length to the bare minimum.

The list of rivals for the Mk2 Fiat Panda became increasingly extensive over its nine year lifespan, and include the second-generation Ford Ka, sensible Honda Jazz and cheap and cheerful Hyundai i10.

Others included the Vauxhall Agila, Citroen C1, Toyota Aygo, Peugeot 107, Kia Picanto, VW Fox and Smart Fortwo.

Perhaps the strongest contender would have been the even cheekier Renault Twingo, had the company not foolishly decided to spurn RHD variants).

The Mk2 Fiat Panda first appeared in 2004 and promptly claimed the European Car of the Year award – a rare occasion when the accolade went to a deserving winner.

And everything that was good about it then remains a positive today. It’s rugged, durable and, but for the tiny boot common to all city cars, remarkably spacious. Indeed, some 68% of its overall length is devoted to the passenger compartment – a figure unmatched by any rival.

A choice of 1.1 and 1.2-litre petrol engines was all Fiat’s engine department originally had to offer, so the subsequent introduction of a 1.3-litre Multijet diesel unit and a mildly sporty 100PS petrol engine proved welcome additions. The 1.2-litre petrol engine is quoted as returning almost 57mpg, the 1.3 diesel nearer 65mpg.

The Fiat Panda’s a doddle to drive, further enhancing its city car credentials with a ‘City’ button that takes all the weight out of the steering for easier urban manoeuvrability.

Yet we really can’t write off the Fiat Panda as merely an urban runabout: not only does it ride extremely comfortably on the open road, but it also handles with surprising panache, devouring long distances with an easy lollop more usually associated with much larger cars.

The Mk2 Fiat Panda was launched in a choice of three trim levels – Active, Dynamic and Eleganza. Priced from just under £7000, it was something of a bargain, the pick of the bunch being the Dynamic AirCon, which added air-conditioning and a CD player for just under £8000.

This is still a hugely popular car, so a used bargain may prove pretty hard to find.

If you’re looking for a newer version, check out our review of the 2012 Fiat Panda here.

The Fiat Panda pulls smoothly and cleanly from low speeds, and the close-at-hand gearshift is probably the best in city cars of the time.

The clutch is appropriately light and progressive for a car in this class, the turning circle is just nine metres, and the ‘City’ button takes all the weight out of the steering for effortless three-point turns.

On the open road, the Fiat Panda’s relatively firm suspension springing gangs up with particularly comfortable front seats and the added squish of respectably tall tyre walls to deliver an excellent ride that soaks up bumpy roads and potholes with aplomb.

The Fiat Panda is much more controlled in corners and on roundabouts than many other cars of this size, which is especially impressive given its tall profile. Though clearly no sports car, the Fiat Panda is an engaging drive that’s actually capable of putting a smile on your face.

Nor will it drive you dotty on the motorway, combining surprisingly quiet, comfortable cruising with – in 1.3-litre Multijet diesel guise – a range of almost 600 miles.

Not even the performance of the Fiat Panda 100HP will make you feel remotely as though your trousers are on fire but, despite a pretty relaxed state of tune, all the engines in the range will bumble happily around town and cruise fairly effortlessly at 70mph.

Punting out a modest 55PS and (as with all engines in the range) mated to a five-speed manual transmission, the entry-level 1.1-litre petrol engine will amble from 0-62mph in about 15 seconds.

Although efficient, there seems little point in choosing it when the 61PS 1.2-litre unit is quicker – both to 62mph by one second and, more importantly, through the gears – and marginally more economical.

ECO versions of these engines reduce CO2 emissions to just 199g/km and increase fuel economy to 57mpg without any reduction in performance. 

The 1.4 litre 100HP petrol engine is mildly diverting, adding a ladleful or two of added amusement to the fun already found in lesser engined Fiat Pandas.

0-62mph in 10 seconds may not be much to write home about, but it will definitely put a smile on your face on your favourite B road.

The only diesel on offer is the 1.3-litre, 71PS Multijet, which boasts considerably more low-down pulling power than the 1.1 and 1.2-litre petrol units, helping it reach 62mph in 13 seconds.

Capable of 65mpg, and more on a longer run, it’s incredibly frugal, but you will have to pay a premium for it both at the pumps and in the dealership these days.

The Mk2 Fiat Panda only scored three stars in the Euro NCAP crash tests, which is disappointing for a relatively modern car.

Nonetheless, it was the first car in its class to offer no fewer than six airbags as standard on some models, with driver and passenger airbags standard across the range.

Even the 1.2-litre Dynamic model is fitted, as standard, with ABS and brake assist, and more expensive versions are equipped with side airbags and stability control as well.

The Fiat Panda is not the most obvious choice if towing is a priority, but it’s possible. It is only rated to tow trailers up to 400kg (unbraked) or 900kg (braked).

Just 3538mm long, the Fiat Panda still manages to devote nearly 70% of that length to passenger accommodation, with four doors accessing four spacious, comfortable seats.

There’s stacks of headroom in the back, but the price you pay for that is just 206 litres of loadspace. Flopping forward the rear bench seat increases that to 861 litres, but if you want 50:50 split/folding seats, you’ll have to hunt out the posh Eleganza trim level.

Flip up the diminutive parcel shelf for better loadspace access and it clicks into the vertical position, meaning you’ll inevitably forget to lower it again until you drive off and discover you can see nothing through the rear view mirror. And this is a slight pain, because you need the ignition key to open the tailgate…

The driving position’s a tad upright, which is somewhat enforced by the absence of reach adjustment to the steering wheel. But the front seats are extremely comfortable and the view out through the vast windscreen is excellent.

The tall-sided design means that rear seat passengers aren’t cheated out of a view either.

Protruding from the bottom of the centre console, the gear lever’s delightfully close to hand, adding some fun to driving.

In fact, about the only beef we have with this interior is the need to leave the car’s sidelights on in daylight to illuminate the driver’s instrument binnacle, or the dials are unreadable. Happily, the lights go out when you switch the car off, so there’s no threat of a flat battery.

The open bin on the passenger side of the dashboard could do with steeper sides to prevent anything you put in there leaping into the footwell at the first corner. But the glovebox is a respectable size, even if the door pockets are not.

By modern standards, the Fiat Panda’s unremittingly grey interior looks and feels somewhat sub-standard.

But all is as tough as gristle and the switchgear and controls lose none of their easy, positive action with age. Everything you need is on that centre console chin, including the front electric window switches.

Topped by a CD player, the console is sensibly laid out, the ventilation controls in particular reminding us of how much, in this touchscreen age, we miss the use of a well-engineered knob.

The interior colour scheme doesn’t get any more exciting as you climb through the trim levels, and the only shot of colour on offer is from the two-tone seat fabric. But what impresses most is how well screwed together everything is – it’s toddler proof and rattle free.

There’s not much to report here. The Active entry level grade is equipped with a cassette player, and higher grades thereafter replace that with a CD player.

But there’s no USB connectivity, so you can forget about charging your phone, let alone playing any music stored on it.

What you’re left with then is the 2004 staple of small hatchbacks – an AM/FM radio with four speakers. Still at least you’ll never take your eyes off the road to hunt down a podcast.

The market’s awash with 1.1-litre Mk2 Fiat Pandas, which is fine if you’re happy with a car that couldn’t pull the skin off a rice pudding.

But if you want to enjoy your driving a little more we found a 2009 1.2 Dynamic with 73,000 on the clock for £2595, and a 1.2 Eleganza from the same year with just 38,000 miles logged for £5490.

If diesel still floats your boat – and it does suit the Fiat Panda well – we unearthed a 2008 1.3 Multijet car with only 20,735 miles on the clock for £3495.

The 1.1-litre petrol engine will return 56.5mpg, as will the larger 1.2-litre engine. The 1.3-litre Multijet diesel unit returns a handsome 65mpg average.

On a longer run, it can return an impressive 76mpg, which means, with a 35-litre fuel tank, an outrageous range of up to 586 miles is feasible. Not bad for an urban runabout…

The Fiat Panda Mk2 scores well in the CO2 emissions stakes, with an average of 126g/km across the range. The 1.3-litre diesel produces just 114g/km of CO2, making it one of the cleanest cars of its type.

Two ECO versions of the Fiat Panda became available during its lifespan, the Active ECO and Dynamic ECO, the former powered by the 1.1-litre petrol engine, the latter the 1.2-litre unit. Both versions emit just 119g/km of CO2.

Annual road tax is merely £30 for 1.1, 1.2 and 1.3-litre diesel models. From a servicing perspective, parts prices are affordable and availability not an issue, so the brunt of the cost will be down to labour rates.

Head gasket failure was a problem on early cars. The timing belt should be replaced every 36,000 miles, so a service history is vital. Otherwise you should watch out for leaking suspension dampers, failing clutch master cylinders and iffy electric power steering.

Between 2004 and 2012, the Fiat Panda Mk2 remained available only in five-door guise, with a choice of 1.1, 1.2 and 1.4-litre petrol engines and a single 1.3-litre Multijet diesel unit. All engines were mated to a five-speed manual transmission.

At launch, three trim levels were available – Active, Dynamic and Eleganza.

The 1.1-litre Fiat Panda Active is a perfectly good machine, but it does without the Dynamic trim level’s ABS with brake assist.

The Fiat Panda Dynamic is a far better proposition with standard equipment including ABS with brake assist, a CD player, electric front windows, driver and front passenger airbags, power assisted steering with a ‘City’ button and 50:50 split/folding rear seats.

The Fiat Panda Eleganza adds niceties such as alloy wheels, front foglights and heated mirrors.

Subsequent additions to the range include Fiat Panda Dynamic AirCon, with air-conditioning, Fiat Panda Dynamic Skydome, with a ‘hole in the roof’, and Fiat Panda Dynamic Sound, with an upgraded sound system. The Fiat Panda 100HP variant did exactly what it says on the tin, as did the Fiat Panda Dynamic 4x4.