Verdict
The Peugeot iOn represents a new kind of motoring, where a customer can lease a car with very predictable running costs and no tailpipe emissions. It's best suited to short, frequent journeys.

Expert rating: 3.1

Pros
• Fixed price of ownership
• Quiet and relaxing to drive
• Seats four comfortably

Cons
• Only affordable to lease not buy
• Some rivals offer greater practicality
• The interior lacks design flair

1. Exterior: 3/5
The Peugeot iOn shares its looks with the Mitsubishi i-MiEV it's based on, so it's narrow and quite tall, which aids its aerodynamic ability. It also makes the iOn feel well-suited to the urban environment it's designed for. Every iOn has five doors and a hatchback boot, as well as privacy glass and alloy wheels.

2. Interior: 2/5
Despite its narrow body, the extra height gives the interior a surprisingly spacious feel, which can easily accommodate four people. The dashboard is on a par with other urban runabouts, with cheap black plastics, while the stereo isn't particularly well integrated into the dashboard.

3. Practicality: 3/5
The iOn is cleverly built with its batteries in the floor, so they don't intrude much into the interior. The 170-litre boot is adequate, but won't accommodate lots of luggage. It's much more practical than the MINI E, but the Nissan LEAF has a 330-litre boot.

4. Ride and handling: 3/5
The iOn has been optimised for city driving, where it feels wieldy and has a tight turning circle. The ride is reasonably comfortable and there's not too much body roll. We'd need further time with the iOn to assess its abilities on faster country roads, where fewer owners are expected to take their iOns.

5. Performance: 3/5
Electric cars are in their element in the city. Gentle acceleration increases the range to around 70 miles, but this is easy as there are no gear changes, so speed increases smoothly. A full recharge takes six from a household power supply, but a special charger gives an 80 per cent charge in 30 minutes.

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6. Running costs: 5/5
The iOn can be leased for £415 per month over four years or 40,000 miles, including servicing. So, in theory, all you'd pay is around £2 for recharging. Peugeot claims the saving in fuel cost of a conventional vehicle is around £1,500, while a driver travelling into London would save £1,696 in Congestion Charge payments annually and up to £2,000 in parking charges.

7. Reliability: 4/5
With the car looked after by Peugeot during its four-year lease, any reliability issues should be taken care of. The battery, single-speed gearbox and motor are simple and require little maintenance. The Mitsubishi I-MiEV has been on sale since last year in the UK, and no serious problems have arisen.

8. Safety: 2/5
The iOn is a four-star Euro NCAP car, which is disappointing in a class full of cars now routinely being awarded five. It features six airbags, anti-lock brakes (ABS), electronic brake force distribution (EBD), emergency brake assist (EBA) and electronic stability programme (ESP).

9. Equipment: 3/5
There's only one grade of iOn being sold in the UK, so there are no trim levels to choose from. It's fitted with remote central locking, electric front and rear windows, Bluetooth, USB, CD player, climate control, fog lamps, leather steering wheel, folding door mirrors, tinted rear windows and alloy wheels.

10. Why buy? 3/5
With the price of fuel at an all-time high, many will be considering their options. If you live in the city and make regular short journeys, a fixed monthly price with minimal recharging costs could be tempting.