Fiat has grown the 500 family with its 'Magic Power Wagon' which can seat seven. Matt Kimberley, PA motoring writer, gets an early drive.

The Fiat 500 is a brand in its own right. Arguably in some ways the 500 badge transcends Fiat itself and the Italian company isn't daft – it's spreading that name round with new models that aim to capture some of the 500's verve.

The 500L MPW is the next stage of the 500 family expansion. One of Fiat's nicknames for it is the 'Magic Power Wagon' – once you've finished giggling I'm sure the kids will genuinely love going for a ride in a car that sounds as though it belongs in a Disney film.

Joking aside, the 500L MPW – it actually stands for multi-purpose wagon – has an extra 20cm grafted on to the same chassis as the standard 500L, giving it enough boot space for two occasional-use rear seats. They don't come as standard but can be added for an extra £800 or so to create what Fiat calls a 5+2 layout. The legroom in the two rearmost seats is tight so they're best reserved for the smallest children in the car. They also reduce the five-seater version's 560-litre boot by 70 litres when folded flat. With them raised the luggage space is negligible as in most seven-seat cars.

This is the smallest seven-seater you can buy at 4.35m long and 1.78m wide excluding the mirrors. Its high roof and shoulderline make it look bigger than it is, but you're glad of the slimline dimensions driving in town. It's surprisingly nimble as you dash into side streets and doesn't feel like a people-carrier... until you fill it with screaming kids.

While space in the third row of seats is tight, the middle bench seat has lots of space for heads, shoulders, knees and toes, with a driver of more than six feet leaving plenty of room behind even for adult legs. The seats are unusually soft and comfortable in an age of firm padding, and despite the rather odd-looking 'inscription' style upholstery graphics, the front five seats are very likeable.

The clutch for the 1.6-litre diesel model is sprung just heavily enough to offer appropriate resistance but lightly enough to make low-speed ratio-shuffling a breeze for your left leg but the gear shift itself is more notchy than some rivals, and takes a slightly firmer push to locate a cog in the widely-spaced gate.

Family cars need to be practical and the 500L MPW delivers. There are upper and lower gloveboxes, which offer loads of storage space, and shelves and bins of various shapes and sizes that would be fit for loose change, receipts and gadgets. Not so practical on the higher-spec Lounge model is the fact you can't see the cruise control stalk behind the steering wheel. It's not difficult to use 'blind' but it takes a bit of trial and error.

The 104bhp 1.6-litre diesel engine is hardly a powerhouse, but has useful punch from around 1,900rpm on the stylish rev counter up to about 3,200rpm. It was brand new during the test so you can expect it to loosen up at both ends of the rev range as the miles go on. There's a more powerful 1.6 diesel, but the low-powered 1.3 struggles to pull the MPW's mass.

The 500L MPW has an endearing quality about it regardless of its small flaws. It does a job and it feels cheerful, which makes it a relaxing and pleasant car in which to take the kids to school, parties or the beach. Like the 500 hatchback it's highly customisable and handy touches like the movable boot floor, in-boot hooks, additional 12-volt charging sockets and large tailgate lip 'seat' make it a real-world star.