Here is the car Renault is pitching against the big-selling Ford Focus, Volkswagen Golf and Vauxhall Astra – it’s the new Renault Megane.

With a less extreme exterior and improved quality and refinement over its big-bummed predecessor, Renault could be on to a winner.

Renault Megane slide show

While the last Renault Megane sold well in Europe, its brave and original design meant it stayed in UK showrooms for longer before finding buyers.

Many, who might have admired the Megane from afar, would still be more likely to spend their hard-earned on a more traditionally shaped Volkswagen Golf.

In these times of economic uncertainty Renault designers can be forgiven for erring on the side of caution this time.

The all-new bodywork is handsome, but the Megane hatchback fades into the traffic around it. More arresting is the three-door Megane Coupe in bright orange paint we tested back-to-back with this car.

Smooth operator

So, like the Golf, Focus and Astra, the Megane hatchback now has a staid design, and Renault is hoping for more sales as a result.

But is it any different than its competitors to drive?

Happily, it is. The Megane feels more cosseting from behind the steering wheel than its Germanic rivals.

Its suspension feels less stiff and its seats have softer cushions. The gearchange is light and so is the steering and operation of the pedals.

The driver can gather pace and travel along with the minimum of fuss in a quiet and relaxing cabin.

This isn’t a car which feels artificially ‘sporty’, and attributes including its quiet engines, long gearing and light beige interior (on our Privilege test car) lend it an atmosphere which will appeal to customers after comfort, not racing stripes.

Its suspension is a development of the previous car, and despite more old-fashioned roots than some competitors, it serves up a relaxed ride over rough roads.

The steering is well weighted and the Megane turns into corners precisely, gripping keenly until its limits are reached, at which point it gradually understeers.

We sampled the 1.9-litre, 130bhp diesel engine with a six-speed manual gearbox. It’s capable of 0-62mph in 9.5 seconds and a top speed of 127mph.

Renault Megane slide show

Perhaps more important is its combined fuel consumption of 55.4mpg and emissions of 134g/km. It finds itself in tax band C, with an annual cost of £120.

Driving gently the 130bhp diesel is amongst the quietest we’ve tried, only becoming more vocal higher in the rev range.

There is plenty of pace on offer too, pulling the Megane briskly out of corners and making overtaking quick and safe.

Quality feel

The dashboard of the new Megane is a big improvement, with an excellent level of fit and finish and good quality materials which are pleasant to the touch.

Our only criticism is the grey plastic surround on the Renault sat nav screen, which makes it look like it should fold away, even though it’s fixed.

The steering wheel can be moved in height and reach, and the seats are fully adjustable too, so anyone can get comfortable.

Practicality is improved thanks to more boot space – it’s grown from a measly 330-litres to a more generous 372-litres.

We also noticed the front head restraints are well positioned to help avoid whiplash type injuries.

There is a full complement of airbags and Renault claims the Megane body shell is the safest of not just any car in its class, but of any car on sale.

When it’s crash tested by EuroNCAP, Renault will be hoping for the full five stars.

So does the Renault Megane make a good buy? Yes, if you like a car which is quiet and relaxing to drive, with light steering.

It’s competitively priced, and there should be some good deals available, but it will be worth keeping an eye on depreciation figures over the next few months – the last Megane lost more of its value over the first three years of ownership than its top rivals.

Key Facts

Model tested: Renault Megane Hatchback dCi 130 Privilege
On the road price: £18,795
Price range: £13,995 – £18,795
Date tested: November 2008
Road tester: Andy Goodwin