LIFE'S looking tough. The mortgage is in arrears, the gas bill has just landed with a thump, the price of diesel is going through the roof and there are rich relatives to help out.

You need a new car but you can't afford much more than beer money.

Luckily, there's hope at your local SEAT franchise, where great deals are to be had on the out-going Ibiza.

That's right, the soon-to-be-replaced Ibiza.

SEAT's supermini has been around so long that this could almost be a used test but, as the saying goes, there is many a good tune played on an old fiddle and the Ibiza comes from a good (VW Polo) bloodline.

The Ibiza's final facelift came a couple of years ago when SEAT tried to give its smallest car some of the visual appeal of the Leon and Altea by adding a wrap-around front bumper, new headlights and a honeycomb grille. It could do nothing about the rather staid side profile, although the trio of tail-lights look nice from behind.

Changes to the interior were largely limited to a new fabric swatch and - drum roll please - a new gear knob!

Equipment levels have kept pace with the class, though, thanks to SEAT loading on the goodies as the Ibiza reaches its dotage.

Whichever model you buy you'll find 15-inch alloys, twin airbags and anti-lock brakes. Curtain airbags, ESP and bi-xenon lights reside among the options list.

There's nothing to worry about beneath the skin. The Ibiza is largely the same as the VW Polo, so it's tough and well screwed together, even if the cabin plastics leave something to be desired (one area where the new car is certain to score over its predecessor).

That slightly old-fashioned shape does liberate plenty of headroom in the front, although a gentle roof curvature reduces space in the back for taller passengers a bit.

Legroom is fine all round for this class, although my wife had to move her front seat further forward than she would have liked when our son was sitting behind. The seats offer good support and are comfortable on long trips.

When it was a bargain brand, SEAT cars used to be known principally for their huge boots. The Ibiza has a generous cargo area. The load lip is quite high, and the spare tyre has been replaced by an emergency can of foam tyre sealant, but there's a lot of useful room. More, in fact, than I found in the gargantuan Lexus GS 450h I tested recently. The seats split/fold but don't lie flat.

The boot is opening switch is neatly integrated into the SEAT badge but the hatchback gets dirty quickly and shutting it leaves your fingers mucky if you are not careful.

On the open road there's a bit of noise from the 1.2-litre engine, which uses three cylinders not four, but it is not unpleasant and cruising refinement is good.

There's no need to turn up the radio even at 70mph. New for this year is full iPod compatibility so you can plug in your portable music player for hours of tunes.

Performance is more than adequate.

The 1,198cc power plant makes the most of its modest 63bhp output.

Top speed is a shade over 100 mph.

A decent amount of mid-range helps the hatch keep up with faster (and costlier) cars.

There is plenty of grip and the chunky steering wheel is nice and meaty. The ride is firm - the Ibiza crashes, rather than glides, over the worst roads, a compromise younger drivers will be happy to make for the sporty manners.

Fuel consumption is good at almost 50mpg overall.

In fact, why bother with a diesel when a 1.2 petrol does almost as well?

But here's a strange thing, the fuel gauge reads in the opposite direction.

When the needle is pointing to the left the tank is full, when it's buried over on the right it's time to find a petrol station. Odd.

The Ibiza 1.2's carbon dioxide emissions are 144 g/km putting it in road tax band C (or £120 per year to you, squire).

The government's estimate of the 1.2's fuel costs per 12,000 miles is £1,207 and the tank range is around 400 miles. Not bad for a tiddler.

There is nothing wrong with the Ibiza's safety record, either.

It scored a solid four stars in the Euro NCAP crash tests and all five seats have three-pointed seatbelts and proper head restraints.

Child safety features include switchable airbags and ISOFIX connectors for a child seat.

But best of all has to be the price.

An Ibiza can be yours for eight grand, less if you haggle hard.

The impending arrival of the new Ibiza has made dealers a lot more amenable to a bit of horse-trading.

It may be small but that's still a lot of car for not a lot of money.

SPECIFICATION

Engine: 1198cc three cylinders
Max power: 63 bhp
Max torque: 83 ft/lb @ 3,000rpm
Max speed: 103 mph
0-62mph: 14.2 seconds
Average fuel consumption: 48 mpg
Road tax band: C
Equipment: Electric front windows, CD player wi iPod connection, power steering, air conditioning, alloy wheels.