The Volkswagen Up has claimed the top prize in What Car? magazine's annual awards.
The Up model was named car of the year, for its combination of "refinement, quality, space and economy", according to the magazine's editor-in-chief, Chas Hallett.
He added: "It sets new standards for the £10,000 price bracket. It feels at home in town and copes admirably on the motorway - it is the right car for the time."
The Up won a further award for the safety of its braking system and the Volkswagen Golf claimed the title of best small family car for the fourth year running.
Readers of the magazine voted the forthcoming Jaguar C-X16 the most exciting car for 2012.
The Jaguar is set to be unveiled at the Geneva motor show in March.
But with an expected retail price of £50,000, the vehicle could prove to be seriously costly when it comes to car insurance.
The awards also proved successful for Audi, which won the best supermini prize for its A1, the coupe title for its TT, and the open-top award for its TT Roadster.
© Press Association 2012