Kia’s new K4 lifts the bar for small cars — but the bargain days are over

There is big news on the small car scene.

And it’s a traditional ‘good news, bad news’ story.

It’s good news for people who want a good car, but less good for people who want good value.

Why? Because Kia, which has been a go-to choice with its baby Cerato for more than a decade, has left the bargain basement.

It’s created a new contender called the K4 which is more like a Volkswagen Golf and has a starting price of $32,090.

That’s a world away from the $15,000 bottom line that got the Cerato moving, with help from Australia’s first seven-year warranty in 2014.

So the price point has been surrendered to Chinese imports, both combustion and electric, as people also choose SUVs well ahead of conventional compact hatchbacks.

Still …

The K4 is a lovely drive thanks to suspension tuned by Australian guru Graeme Gambold, it has a classy cabin and plenty of standard equipment.

Of course, I was driving the fully-loaded Sport+ and the bottom line jumps just over $40,000 by the time you put it on the road. And that’s a lot of money for people who grew up in the days of $13,990 pricing for the Hyundai Excel.

The Kia newcomer is available as a sedan and five-door hatch in three trim levels with a choice of two engines. The walk-up through the prices and equipment opens with the S, followed by the Sport at $36,690 and the Sport+ at $39,090.

Something to remember is the basic S only gets a 4-Star ANCAP safety rating, where the others get a full 5-Star tick.

Even the base model gets a keyless entry with button start, LED lights, wireless connectivity, auto safety braking, a 12.3-inch touchscreen  and 16-inch alloys.

At the top end there is synthetic leather trim, electric driver’s seat with memory and larger alloys.

Mechanically, the basic engine is a 2-litre petrol with CVT auto and claimed economy of 6.1 litres/100km, while the hero car has a 1.6-litre turbo with 142 kiloWatts and 265 Newton-metres with an eight-speed auto.

For people raised on hatchbacks, the K4 looks good. The quality is good, too. But it has a very annoying speed alert that bongs and bongs, although you can turn it off – until you re-start the car.

The front seats are supportive, the dash design is modern and classy – without allowing the infotainment screen to totally dominate – and there is lots of standard ’stuff’.

Driving the K4 Sport+ is very enjoyable. You must hit the ’sport’ button on the steering wheel to wake the engine, which can be dozy if left by itself, but the gearing is good and it has shift paddles. Braking is strong, it rides well even on poor surfaces, and the cornering response is great for the class.

I nearly forgot to mention the rear door handles, which are awkward to find and use – like the Toyota CH-R – and there is not much legroom in the back seats.

But those are minor niggles on an impressive car which is priced against the small-car pack – think Corolla, Mazda3, Hyundai i30 – and delivers solid value.

KIA K4

Price: from $32,090 ($39,060 Sport+)
Engine: 2-litre four-cylinder, 110kW/142nm (1.6-litre turbo, 142kW/265Nm)
Gearbox: CVT auto, front-wheel drive (8-speed auto)
Safety: 4-Star ANCAP (5-Star Sport+)

The tick: an impressive step up.