In 2014, a friend and I went to Italy for a holiday. There, we were blessed to be able to hire a Fiat 500 1.2 Lounge Automatic, which was like the one in the picture (I think it may have been a slightly different shade of grey). The so called 'Nuova 500' was released on the 50th anniversary of the original model in 2007, and is still in production today in slightly modified form.
The one we drove in Italy had a 1.2 litre engine, developing around 69 bhp, which was perfectly adequate for Italian city conditions, but somewhat lacklustre on the autostrada and also hills. The automatic gearbox did not help matters either, being one of the worst units I have ever encountered. It was slow to respond, often seemed to have incorrectly spaced rations, and was not very smooth at all. The manual override option didn't seem to help very much either...
Although my lady wife loves the exterior styling (as do most ladies I seem to talk to), the interior of the car is cramped, poorly laid out, and has some quite low quality scratchy plastic. The boot and rear seats are also very small, although it is possible to easily fold them down. The rear visibility is also surprisingly compromised for such a small car, and so I would recommend parking sensors.
The ride and handling are no more than adequate, and the steering is quite vague in comparison to lots of other cars which cost less money and offer more space (Ford Fiesta, MG3, etc.). The other engines in the range (such as the interesting two cylinder Twin Air) are apparently better, but the 1.2 was a major disappointment being rough, only average for fuel economy and not particularly powerful.
The 500 is up against some seriously talented three door competition in Britain, such as the Mini, the Audi A1, the Citroen DS3 and the Vauxhall Adam. Most of them offer more space and a better drive, although the 500 does come in some nice colours and is relatively competitively priced. The biggest problem, however, is within Fiat's own range.
The 500 has only been facelifted since its launch in 2007, but the 2003 Panda, on which the 500 is based, was more comprehensively redesigned 2012, and was always cheaper and more spacious. I don't know what the reliability statistics are for Fiat these days, but they didn't used to be very good, so I reserve judgement on that. Online surveys don't seem to indicate it is any better than average, however.
In comparison with the amazing 1957 original, which is still a marvel of design and packaging, the current 500 is a disappointment. It may cheaper than many rivals, but it is not as talented as them. With limited space, a weak entry level power unit, some poor quality interior trim (albeit with a nice design), and price thousands more than the more practical Panda, I don't find I can recommend it.
For those after a car of this size and style, I would recommend an Audi A1, or, for those on a more limited budget, the Vauxhall Adam. Both have the some of the style, but much more of the substance.