The sixth-generation Ford Fiesta (often called Mk6 in continental Europe and Mk5 in the UK) marked a complete break from its predecessor thanks to an all-new platform offering significantly increased interior space and first-class road handling. Launched in 2002, it benefited from a major facelift in late 2005 (Phase 2) which corrected its main flaw: a low-end plastic interior finish, replaced by soft-touch materials and a modernized design. Mechanically, this generation sealed the partnership with PSA (Peugeot-Citroën) for the diesel engines (TDCi), which offer excellent fuel efficiency but require increased vigilance regarding maintenance over the years.
The Ford Fiesta Mk6 is an excellent used city car, provided you choose the right engine. If you are looking for a diesel, the 1.4 TDCi is the most rational choice: it is very economical and its main ailment (injector seals) is inexpensive to repair if caught in time. However, the 1.6 TDCi should be avoided unless you have an impeccable service history (annual oil changes, turbo sieve removed), otherwise repair bills may exceed the car's value. In any case, opt for a facelifted version (Phase 2, after late 2005) to benefit from a much more appealing interior and more reliable electronics. Absolutely avoid the Durashift automated manual gearbox.