Peter Stevens should be a proud man. Not only did he design what for many years was the world’s fastest road car, the McLaren F1, he also crafted the equally exhilarating and somewhat cheaper Lotus Elan.

While it may not exhibit quite the same acceleration or top speed as the McLaren, the Lotus does deserve its place among the motoring greats. It offers superb performance and unbelievable handling for a reasonable price.

Because it was designed and built after Lotus had fallen under the ownership of General Motors in the mid-1980s, the Elan also enjoyed levels of development and investment never before lavished on a Lotus model. It not only boasted a turbocharged 165bhp engine but also front-wheel drive. To some purists these factors diminished the car’s true sporting credentials. In reality, given Lotus’s strategy of minimising the car’s kerb weight, they meant that when it came to corners the Elan was the undisputed master. Even today few cars can keep up with it through the bends. Sixteen years after its launch — and with the advent of the later Elise and Exige models — used Elan prices have reached an all-time low, with early examples changing hands for as little as £5,000. However, it’s worth doing your homework before you fork out.

While Lotus aficionados will declare that the Elan is one of the best built Lotuses ever, the statement is relative. Many owners will explain that Lotus stands for “Loads of Trouble, Usually Serious” and in many respects those stories are true. A used Elan may be a good buy in Lotus terms but it’s not going to be as trouble-free as a Mazda MX-5.

While engines and gearboxes are both pretty strong it’s essential to check the turbocharger. If the exhaust smokes when the car accelerates hard it can signal the need for a new turbo, and that means a big bill. And while the fibreglass body panels won’t rust, the Elan’s steel chassis can. Even though it is galvanised, knocks and scrapes can cause premature corrosion.

Potential buyers are also wise to test drive several used examples before they part with any cash. I remember driving my first Elan in 1996, a part exchange against a Porsche 911, and was horrified by the scuttle shake, turbo lag and trim rattles. Convinced the Elan was a dog, I sold it to a Lotus dealer who I thought could put the car right before retailing it, only to be phoned a few days later to be told they were delighted with the car and that it was one of the nicest they had bought.

There is also debate among Lotus aficionados about which model to buy. The original cars, produced 1989-92, were lighter, more powerful and therefore quicker than the S2 that came along in 1994. The S2 cars lost 10bhp due to the addition of a second catalytic converter but did offer some additional benefits in terms of improved seals around the soft top, larger alloy wheels and more feel to the steering.

Today a good early car can fetch just as much as an S2 — used prices having more to do with a car’s mileage, service history and condition than its registration date. But my advice is to hunt down as late a car as possible — soft tops, chassis and suspension components all degrade as the car gets older so you minimise the risk of a big bill.

Gearchange
Gearbox is strong but its cable and linkages can impair change quality

Timing belts
Can become brittle on low-mileage cars and should be changed every four years or 50,000 miles, whichever is the sooner

Antifreeze
Should be changed every 24 months to stop corrosion of the heater pump

Headlamps
Check pop-up headlamp motors work

Insurance
Group 16 insurance but specialist limited-mileage policies can make premiums very reasonable

Suspension
Wishbones are prone to rusting and can be a major cost

Colours
Green and yellow cars are highly desirable but check red cars carefully as the factory paintwork is prone to fading

Roof
Leaky roofs are an Elan feature, despite improvements on the S2 cars

Service history
Don't just accept a service book with a few stamps, insist on viewing the original invoices to confirm the work was carried out

Exhaust
Check for cracks on the downpipes

Rear brake discs
Prone to rust if the car covers few miles

Doors
Complex construction makes the internals prone to rattles

Driveshafts
Hard-driven cars can suffer from heavy wear

Model Lotus Elan S2
Engine Four-cylinder, 1588cc turbo
Power 155bhp
Transmission Five-speed manual
Fuel 42.2mpg @ 56mph
Acceleration 0-60mph: 7.3sec
Top speed 131mph

The one to buy

1996 P-reg Lotus Elan S2 with 60,000 miles on the clock. You'll typically pay £9,795 from a reputable dealer, or about £1,000 less if you purchase privately

Or for similar money...

2002 02-reg MG TF 1.8 VVC 160
2001 Y-reg Mazda MX5 1.8i S
2001 X-reg Toyota MR2 1.8 VVTi
1994 L-reg TVR Cerbera 4.0
1988 E-reg Morgan Plus Eight

Values: Lotus Elan S2

Source: estimates based on confidential CAP black book prices. 'Trade' is what a dealer would pay to buy your car; 'Retail' is what you would pay a dealer