How much fun can you have with 69hp?

The answer, I discovered after a week in a Fiat 500 Lounge, is more than I imagined.

Even with the less fashionable 1.2-litre naturally aspirated petrol engine, rather than the peppy 875cc TwinAir, the 500 still managed to bring a smile to my face.

Fiat’s chic city car had a facelift last year and, though you’d have to look hard to spot the subtle changes, there's a new chrome strip, larger elliptical daytime running lights and, on the top-spec Lounge model I tested, a studded lower grille.

The rear lights now form a ring around a body-coloured panel and, as customisation has always been a big part of the 500's appeal, there's two new exterior colours and alloy wheel designs to choose from.

You can even choose from a selection of body wrappings that include camouflage, butterflies or 'Scottie', which is what my test car was wearing.

Inside the dash colour matches the exterior, a constant reminder that I would have much preferred the Smooth Mint to the Glam Coral. Don't get me wrong, it's a lovely colour, but it's just not me.

The seating position remains uncomfortably high, with far too little adjustment in either seat or steering wheel to get the driving position spot on and there’s a distinct lack of lateral support which is particularly disappointing considering how much pleasure it is hustling the 500 along.

There’s still room for improvement, in places at least, when it comes to cabin quality and the new infotainment system. It does, however, feature Fiat's Uconnect interface which brings with it Bluetooth handsfree calling and audio streaming. DAB radio will set you back an extra £100.

Tom Tom make excellent sat navs and the £350 system in the 500 is no exception. The mapping is top notch, the user-interface is intuitive but – you knew there was going to be a but didn't you – it's not as slick as the competition's.

There are three trim levels available: Pop, Pop Star and Lounge.

Pop has stop-start, electric windows, aux in and USB ports, steering wheel mounted controls and LED daytime running lights.

Pop Star adds air con, heated door mirrors, 15in alloys and 50/50 split-folding rear seat.

The top-of-the-range Lounge includes rear parking sensors, leather-bound steering wheel, front fog lights, unique 15in alloys and Uconnect .

Space in the rear is, unsurprisingly, limited. Although it is possible to squeeze four adults in the car I can’t say I was disappointed that it wasn’t me riding in the back. The boot is small, just 185 litres, but that should be enough for a weekly shop. Fold the rear seats flat – split folding rears are only available as an option on Pop models – and that increases to 550 litres.

The steering is light - lighter still if you select city mode - and while there’s a considerable amount of body roll thanks to the softer set-up, the 500 holds its line well through the corners.

The damper settings ensure that it regains its composure quickly over larger bumps and provide the 500 with the tools to be a competent long-distance cruiser. Its ambitions in that department are reined in a little by the 1.2-litre petrol engine which can feel a little underpowered on longer journeys. It needs plenty of revs to pull away thanks to a noticeable lack of torque and that same deficit can make trying to overtake tiresome.

Refinement is on the right side of okay. Wind noise and tyre roar are noticeable at higher speeds but don’t render conversation impossible.

The Fiat 500 is as much a fashion accessory as it is automobile but it’s still a capable machine.

There’s still room for improvement, but it’s fun to drive with endearing, and enduring, looks unless, like my test car, it’s wearing one of your grandad’s tank tops.

Fiat 500 Lounge

Price: £12,800

As tested: £15,300

Engine: 1.2-litre

Transmission: 5-speed manual

Max power: 69hp

Max torque: 75lbft @3,000rpm

Max speed: 99mph

Acceleration (0-62mph): 12.9sec

Urban: 51.4mpg

Extra urban: 65.7mpg

Combined: 60.1mpg

Emissions (CO2): 110g/km

For more information visit www.fiat.co.uk