If the Peugeot 407 SW had a BMW or Audi badge on it, you might expect to pay at least £15,000 more to drive it away.

The fact that it doesn’t means that you’re getting a vehicle which is every bit as enjoyable to own, only without the additional expense that comes with being a badge snob.

Introduced in 2004, the 407 SW (it stands for station wagon) is a medium-sized family estate which comes with lots of additional glass, including a panoramic roof, and a stylish exterior.

But while it might be an estate, it is a hatchback estate in the manner of an Audi A4 Avant, which means that there is a slight compromise of style over storage space as the rear end tapers in. That said, there’s still plenty of room for five people and a good-sized, deep boot complete with a parcel shelf for conceaeling valuables.

The car tested here is the top of the range and the GT level of trim means that it comes with loads of luxury additions, including the latest RT4 Multi Media System fitted as standard. Other bits of trim over the Sport model include electric seat adjustment, sports mesh grille, a colour display screen and a rear parking aid.

Once again, it feels just as nice as some far more expensive vehicles. But the best thing of all about this particular car is the 205bhp 2.2litre HDi V6 diesel engine, which is even smoother than a baby’s bum.

Coupled to a six-speed manual gear box, you’d go a long way to find another engine this responsive, entertaining and frugal.

In fact, the SW has a great sporting feeling for a car so big.

On top of all that, the 407 SW is incredibly good looking. I’d certainly consider one if I was in the market for something with the practicality of a traditional estate, yet the panache of a modern motor. It scores quite well on safety, with five stars for front/side impact, two stars for pedestrians and four stars for child protection.

The 407 SW range starts at £16,900 for 1.8 16V S five door and tops out with this model, which costs £26,250.

Autotrader has a 54-plate 407 SWs for as little as £5,950 (2.0 SE 5dr – 52,000 miles) while a one-year-old GT with 10,000 miles on the clock was selling for £17,495. A replacement 408 is due to arrive some time in 2010 but while the 407 SW might have been around for a few years now, it is not showing any real signs of ageing.

TECH SPEC

Model: Peugeot 407 SW GT V6 (2.2litre HDi)

Price: £26,250

0 to 62 mph: 8.8 Secs

Top speed: 140mph

Insurance group: 14E

Emissions: 156 g/km

Consumption: 45.5mpg