The entry price of the Fiat 500 range has been lowered dramatically, with a new base model Fiat 500 Pop priced from just $14,000 drive-away.

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The Fiat 500 range, which previously started from $18,300 for the 0.9-litre TwinAir, has been extended to eight grades, which include the 1.2-litre and 1.4-litre four-cylinder petrol models as well as the turbocharged two-cylinder TwinAir.

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Fiat says the $14,000 driveaway pricing is all about making the 500 more accessible to a broader range of customers. It puts the 500 in direct competition with the Volkswagen Up!, which starts at $13,990 plus on roads.

“The launch of an expanded 500 range is the next step in our repositioning program for Fiat vehicles by making the 500 model obtainable for a wider cross section of car buyers, including those entering the new car market for the first time,” said Veronica Johns, President and CEO of Fiat Chrysler Group Australia.

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The Fiat 500 range is available in three trim levels: Pop, Sport and Lounge. Each is available as either a hatchback or cabrio. There’s also a limited edition Fiat 500 Gucci.

The Pop and Sport hatchbacks are available with a manual transmission (five-speed for the 1.2-litre, six-speed for the 1.4-litre), with the availability of a 'robotised' transmission, which is essentially a manual transmission that has been automated (but it isn't an automatic transmission in the traditional sense).

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The rest of the range is only available with the Dualogic automated manual transmission, which means the 0.9-litre TwinAir engine is no longer available with a manual transmission.

Its new entry price makes the Fiat 500 the cheapest European car in Australia. The base Fiat 500 Pop sips just 5.0- or 5.1L/100km in automated manual or regular manual respectively. The drive-away price includes all exterior colours, air conditioning, seven airbags and a six-speaker audio system with Bluetooth and USB input.

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From January-May this year Fiat has sold just 336 Fiat 500s. During the same period Volkswagen found 1232 Up! buyers. Fiat expects 500 sales to rise sharply and rapidly once the new pricing restructure takes hold.

Read: Fiat 500 Review.

Fiat 500 Specification:

Pop

  • ABS anti-lock braking with EBD (Electronic Brakeforce Distribution)
  • Driver and front passenger airbags
  • Side airbags
  • Head-protecting side airbags
  • Driver’s knee airbag
  • Electric front windows and door mirrors
  • Air conditioning
  • Dualdrive electric power steering
  • Trip computer
  • Height adjustable driver’s seat
  • Front passenger under seat stowage
  • Seat-back pockets
  • Folding rear seat
  • 14-inch steel wheels with wheel cover

Sport

In addition to the Pop specification, Sport adds:

  • Sports body kit & rear spoiler
  • Sport function/button
  • Sports seats with red stitching
  • Flat bottom sports steering wheel with red stitching
  • 15-inch sports alloy wheels
  • Larger ventilated front disc brakes & larger rear brakes
  • Fog lights
  • Dark tinted glass

Lounge

In addition to the Pop specification, Lounge adds:

  • Fixed glass roof with sun blind
  • Climate control air conditioning
  • Start&Stop system
  • Chrome bumper accents
  • 15-inch multi-spoke alloy wheels

Fiat 500 Pricing:

  • 500HB Pop 1.2 Fire (51kW/102Nm; 5.1L/100km) MT – $14,000 drive-away
  • 500HB Pop 1.2 Fire (51kW/102Nm; 5.0L/100km) MTA – $15,500
  • 500HB Sport 1.4 Fire (74kW/131Nm; 6.1L/100km) MT – $16,900
  • 500HB Sport 1.4 Fire (74kW/131Nm) MTA – $18,400
  • 500HB Lounge 0.9 TwinAir (63kW/145Nm; 3.9L/100km) MTA – $20,300
  • 500HB by Gucci 1.4 Fire (74kW/131Nm) MTA – $23,200
  • 500C Pop 1.2 Fire (51kW/102Nm; 5.1L/100km) MTA – $17,900
  • 500C Sport 1.4 Fire (74kW/131Nm) MTA – $20,800
  • 500C Lounge 0.9 TwinAir (63kW/145Nm) MTA – $22,700
  • 500C by Gucci 1.4 Fire (74kW/131Nm) MTA – $25,650