The '843' generation Lancia Ypsilon (often considered the 3rd generation if the Autobianchi/Lancia Y10 is included) is a premium 3-door city car, based on the proven platform of the Fiat Punto II (Project 188). Designed to appeal to an urban clientele looking for luxury and personalization (two-tone paintwork, Alcantara or leather interiors), it stands out for its comfort and neo-retro design. Facelifted at the end of 2006 (new bumpers, white taillights, Blue&Me connectivity), it enjoyed great success in Italy and Western Europe. While its interior finish is flattering, its Fiat technical underpinnings guarantee affordable maintenance, particularly on the petrol engines (FIRE family) which constitute the most relevant and reliable choice for this model.
The Lancia Ypsilon III (843) is an excellent used city car provided you target the right version. It is imperative to favor the petrol engines (1.2 or 1.4 FIRE) with a manual gearbox. These versions are formidably reliable, economical to use, and benefit from cheap spare parts thanks to the Fiat parts bin. On the other hand, stay away from models equipped with the D.F.N. automated gearbox (exorbitant repair costs) and avoid the 1.3 Multijet diesels if you mainly drive in the city, otherwise you risk suffering timing chain breakages or chronic clogging. Before buying, checking the proper functioning of the electric power steering is the number one checkpoint.