The A-Class was a case of third time lucky for Mercedes - at least in terms of making a profit.

The groundbreaking first-gen A-Class was safe and extremely space-efficient. We called it "easily the most innovative front-wheel-drive car since the Mini", yet frumpy styling played a role in it becoming a €2.5 billion failure. Merc's second effort addressed notorious handling quirks but was no less ungainly.

The Mk3, however, was bang on the mark: Mercedes straightened its tie, pushed its glasses up, reopened the rulebook and built the most Volkswagen Golf-like hatchback it could, rather than a segment-bending innovation showcase. It was a roaring success.

It's still a good-looking car today, with neat creases, balanced proportions and a subtly sporting aura. Residuals remain strong, but you can now grab a well-looked-after example with reasonable mileage for less than £5000.

At 4.3 metres long and with a range of four-cylinder petrol and diesel engines driving the front wheels, the A-Class was engineered and specified to rival VW's benchmark and its trendsetting premium relation, the Audi A3.

You slide down into a W176 A-Class's heavily bucketed seats: the low roof and small door openings make it feel more like getting into a sports car than a posh family hatch. That was the point: Merc was trying to entice a younger and more dynamically inclined buyer.

It all feels luxurious and nicely finished without being exuberant. Good-quality plastics and premium switches are plentiful, and the 7in (8in with the 2015 facelift) infotainment system is right-sized, as is the smaller display between the sporty analogue dials.

The driving position is great, but the rear space is more compromised: the bulky seats and low roof make it quite claustrophobic, and the middle seat is for occasional use only.

The boot is also a touch small, at 341 litres, but the flip side of the reduced practicality is the compact feel on the road. The dynamics are excellent, and few would have expected Mercedes to release one of the best-handling hatchbacks of its day. The A-Class is immediate and direct, darting into corners and holding its line with tenacity. A BMW 1 Series seems stodgy by comparison and an A3 almost insipid. It's genuinely good fun to hustle down a B-road.

For those few readers who aren't keen drivers, you might lament the uncompromising stiff ride and poor sound insulation (improved with the 2015 facelift), which lets too much road and engine noise inside. SE and Sport models are firm, but AMG-lite trims can be uncomfortable on all but smooth roads. Adaptive dampers (available post-facelift) go only so far at taking the edge off the ride.

Another A-Class miss was the engine selection: none of the petrols or diesels stand out. That said, the 1.6-litre 156bhp A200 petrol gives a nice balance between economy and performance, and the 2.1-litre diesel became better refined post the 2015 facelift. The 134bhp A200d is efficient and punchy. Both engines are at their best when paired with the standard six- speed manual, although the seven- speed dual-clutch auto isn't bad. Worth hunting down is the rare A250. With 208bhp (215bhp in the facelift), it has Golf GTI pace with an unforgiving chassis that gives great agility when pushing on. It's a forgotten but worthy hot hatch.

What to look out for 

Interior: Check for rattles, possibly emanating from the centre console or, on early models, from the front seatbelt height adjusters, which were modified on later versions. Build quality was generally much better on facelifts, and additional sound deadening was welcomed.

Engines: Mostly reliable apart from typical particulate filter issues on the diesels. The 1.6 and 2.0-litre petrols and 1.8-litre (pre-facelift only) and 2.1 diesels are Merc units, while the 1.5-litre diesel is from Renault. It's a little underpowered (108bhp) but economical, reliable and no less refined than the bigger units.

Servicing: A noisy clatter on any engine indicates it's time for a new timing chain - it's normally due at 124,000 miles but often needs doing sooner. The A-Class requires servicing every year or 15,000 miles, whichever is first. The big service should be every four years. It's worth factoring this into the price if a change is due.

Gearbox: Jerky or delayed gearshifts could mean an issue with the automatic 'box - a seven-speed dual-clutch auto across the range. A service or replacement control unit should fix things.

Low-emission zones: All petrols are LEZ compliant, as are 2.1-litre diesels, from as early as 2013. The 1.8-litre diesel is not compliant, and neither is the 1.5-litre in the pre-facelift car (tell it apart by a '180 CDI badge', rather than '180d').

Also worth knowing

Trims range from SE to AMG Sport (AMG Line in the facelift) with Sport in the middle. Sport adds cruise control, auto wipers and 17in alloys to the standard electric mirrors, air-con and auto lights. AMG versions have a sportier bodykit and carbonfibre bits inside. Lots of features (LED lights, leather heated seats, a panoramic sunroof) are wrapped up in the two option packs, Premium and Premium Plus.

The 2015 facelift brought Dynamic Select, with a range of driving and suspension modes: Eco, Comfort, Sport and Individual. It also has the improved 'NTG 5.1' infotainment system that includes both Apple CarPlay and Android Auto hardware support - but not all models have it enabled.

Earlier models with NTG 4.5 can have it (expensively) upgraded, while later ones may just need a software update and cable.

Insurance groups range from 13 to 33. Vehicle excise duty is as little as £20 for the diesels, while the petrols are around £200.

How much to spend

£2000-£4999 Neglected and high-mileage cars, probably not worth the risk.

£5000-£8999 Good-condition, reasonable-mileage pre-facelifts, plus a few later cars in less desirable SE trim.

£9000-£14,999 Massive selection of facelift cars, the majority being automatic diesels. AMG Line commands a significant premium over Sport.

£15,000-£25,000 Late, low-mileage cars and a selection of bonkers A45s - a future classic in the making?

An owner's view 

Sioban Hall: "I love my 2017 A-Class. It's an A220d with the AMG Line bodykit. The only downsides are that it can feel quite stiff and noisy, but otherwise I like that it feels low and powerful like a sports car. So far it has been reliable and economical - I get almost 50mpg - and is the perfect car for my motorway commute."