BMW is building a reputation for performance value with its M Performance brand. Given how easy it is to spend £30k on a hot hatch these days, the M240i looks like great value at just over £35k.

Comparison with the outgoing 1M Coupé does the M240i no harm, either. Three years later, you get similar power and performance for a good £6000 less.

Nic Cackett

Nic Cackett

Road tester
The mechanical LSD needs to be standard and the Variable Sport Steering an option

Our sources expect residual values to be good but not brilliant – which is good enough. Expect it to fall behind the likes of the Audi TT, for example, in the residual value stakes.

Economy, meanwhile, is as good as it needs to be, given how much that fabulous engine gives you. On a touring run, our tests suggests economy in the mid-30s is realistic, which is a competitive performance.

One fly in the ointment: your BMW dealer will most likely charge a premium for fitting those M Performance accessories. The LSD alone could set you back more than £2500 all in. As a factory-fit option, we’d expect it to cost much less.

Save money on your car insurance

Top 5 Affordable sports cars

Find an Autocar car review

Find an Autocar car review