IN the past, it was easy to tell the difference because one body type was noticeably lower than the other. But things are different now – so much so that if height were the only arbiter, the Peugeot 307 estate would be right on the cusp.

Seeming to stand just as tall as the Nissan Almera Tino MPV it has just replaced on our long-term test fleet, this mid-sized hold-all is well-endowed when it comes to interior space – always an important factor in the business market.

Though officially a compact model, the lofty 307 is particularly roomy, and I'm starting to appreciate the practical benefits of a clever cab-forward design that somehow manages to be a lot bigger on the inside than it appears on the outside.

##307estatelong--none##

One of the biggest cars in its class, it has a high seating position and this, combined with a massive MPV-type windscreen, provides the driver with a commanding view of the conditions ahead, which is good for road safety.

But the 307 scores highly in more practical areas too. Despite having the demeanour of a fairly upmarket car, this estate quickly converts to load-carrying mode and provides a wide, flat floor that is low enough to be easy to load from the rear tailgate and the rear doors. And four sturdy tie-brackets on the floor also make it easy to secure the cargo.

While the standard of finish on our top of the range S version is good, the overall visual effect is marred by a loose piece of trim on the dash panel. During night-time driving, however, I'm more concerned by an intermittent surge in the charging system. When it happens, it increases the intensity of the headlamps for just a few seconds at a time and it's puzzling, because no other electrical equipment seems to be affected.

However, the 307 has no mechanical gremlins and it is performing well, with running economy improving as the major components bed down. Driven gently, the 110bhp engine returns comfortably in excess of 50mpg, and making greater use of its lusty output fails to take the figure lower than 48mpg.

Company car tax bill 2004/05 (22% tax-payer): £50 per month