We Brits are buying more cars than ever before but they are not the cars we used to buy. The nondescript family saloon that characterised the middle Englander as “Mondeo Man” is in decline. Business people supplied with a company car crave premium brands like BMW and Mercedes. Those who have to cope with the varying demands of children go for SUVs and MPVs. Even senior citizens are forsaking their comfy saloons for something sportier.

Another reason could be that family saloons are boring. By trying to turn itself into a Volkswagen Passat, the inconspicuous, inoffensive shape of the Ford Mondeo became even more anonymous. “All cars in this part of the market look the same,” says Frédéric Saint-Geours, the boss of Peugeot. “We think the time is right to offer something really different.” That car is the 407.

Peugeot, once the most conservative of car manufacturers, has succeeded with enticingly stylish models like the 206 and 307. Now its answer to the Mondeo, Vectra and Passat has a bold new look that cannot be mistaken for any of its rivals. The 407’s long nose, with a wide gaping grille and swoopy headlights, was inspired by a Ferrari, and the steeply raked windscreen and high coupé-like tail give it a racy stance. It is a quantum leap from the neat and tidy Peugeot 406 it replaces.

Inside, the 407 is more conventional, but the plastic mouldings are up to the current best standards and the curved centre console has the multitude of buttons and switches that buyers of posher cars expect. Thankfully, only the very top models feature faux-walnut; the aluminium trim in popular versions is more appropriate.

This car is likely to sell on its looks, but Peugeot wants it also to be seen as best in class for safety and driving quality. Euro NCAP crash-test findings are not yet available but the 407 has the ingredients for a five-star result to match that of its French competitor the Renault Laguna. Seven airbags are standard, including one under the steering column to protect the driver’s lower limbs, and that extended nose is designed to be pedestrian-friendly. Electronic stability control (ESP) is standard throughout the range.

To realise its driving ambitions, the 407 has a new layout for the front and rear suspension, much of which is made of lightweight aluminium. The springs and dampers are stiffer than they used to be on Peugeots of this size. That makes for sportier handling, with little body roll during fast cornering, but the 407 does not glide over bumps with quite the same comfort as its predecessors.

I drove two versions — the 136bhp 2 litre 16 valve HDi diesel and the top model with a 211bhp 3 litre V6 petrol engine. The latter has speed-variable power steering and an electronic damping system that adapts to the road conditions but may be too clever for its own good.

The standard chassis’s ability places it near the top of the medium saloon class, and while the steering does not have the fine precision of the Mondeo’s, in terms of stability and roadholding the 407 is clearly among the best.

Refinement — quiet running, smooth, easy controls — is a strong point, even for the diesel. The 136bhp HDi offers the choice of a six-speed manual or four-speed automatic transmission, while the V6 comes with a new six-speed automatic transmission.

Peugeot expects the diesels — the 136bhp 2 litre and a 110bhp 1.6 — to account for 80% of 407 sales. Both diesel engines have a particulate filter and meet the Euro 4 emissions standards, so the company-car driver avoids the 3% diesel tax surcharge.

There are six engines in all, including four-cylinder petrol engines of 1.8, 2 and 2.2 litres, and four trim levels. The opening price is £14,750 for the petrol 407 1.8S — a touch less than the equivalent Mondeo.

The 407 is three inches longer than the 406 and the extra length, ahead of the front wheels, can’t be seen from the driving seat, which could be a problem when parking. Otherwise the adventurous styling brings no disadvantage. The cabin space is fairly average for the class, but the boot is huge and the rear seats can be folded down in hatchback style.

And if the 407 saloon is still not radical enough to persuade you back to a four-door saloon, take a look at the estate version, the 407SW, that is coming in September. Apart from its unusual profile and tailgate arrangement, it has a large glass roof panel extending from that long, swept-back windscreen. Fans of the 406 estate, a capacious square-sided load lugger, will be dismayed, but I can see people attracted to the 407 opting for the SW for its greater versatility and its even wilder looks.

VITAL STATISTICS

Model: Peugeot 407 SE HDi 136
Engine type: Four-cylinder, 1997cc turbo diesel
Power/Torque: 136bhp @ 4000rpm / 251 lb ft @ 2000rpm
Transmission: Six-speed manual, front-wheel drive
Fuel/CO2: 47.9mpg (combined cycle) /155g/km
Price: £17,450
Verdict: Racy looks should sell the 407 and it's a worthy contender in a declining market

THE OPPOSITION

Model: Ford Mondeo 2.0 DCi Zetec 128, £18,050
For: Still sets the standards for driving experience among mid-market saloons
Against: Styling has been refined to the point of being boring

Model: Nissan Primera 2.2 dCi SE, £16,700
For: Cool, modern shape - the radical choice, until now
Against: Poor sales show that not many want to be that different