PEUGEOT has been having it D for Damned tough in the D segment of late. Dat’s De big family saloon/hatch sector of the market typically dominated by Mondeo and Vectra/Insignia fleet sales in the UK.

The 405 was part of a sweet-handling success during a bit of a golden age for the French lion – but that was way back.

The 406 was capable if unexciting, although the full four-seat coupe version was to die for.

Order it in red and pretend it’s a Ferrari….

And although the 407 was a far from bad car, away from the largely loyal French market buyers did not find enough allure to compensate for the black-hole feeling of sitting in the back and that gaping maw of a grille.

But with the new 508, things are looking up once more.

It has already collected its first award, as Fleet World magazine’s best new car.

In the words of editor Steve Moody: ‘The 508 changes the game for Peugeot. A massive leap forward from the 407, it offers a premium brand level quality cabin, a range of frugal, refined and powerful engines all wrapped in a stylish bodyshell, taking the firm right back into the upper echelons of this vital fleet sector.’

Granted there’s the constant flow in and out of Horror cars, but there’s barely a repmobile fleet market here in Guernsey.

And most local buyers tend to plump either side of the segment either for something smaller or for something more ‘prestigious’.

So what does the 508 –  which replaces not only the 407 but also the larger 507 –  offer to tempt them?

Well it’s far from ginormous and feels, surprisingly, pleasantly compact on the road for a 2011 D-segment contender.

And staying away from the petrol engines – although the more powerful (156bhp) of the two 1.6 petrols does look interesting, developing as it does the same torque as its diesel cousin but even lower down the rev range  – the 508’s fuel economy and emissions will embarrass some much smaller cars.

Combined mpg figures range from 43.5 for that more powerful of the petrol powerplants to 64.2 for the 1.6 microhybrid stop/start diesel and CO2 from 109 to 154 g/km.

With our penchant for boating, fishing and owning dogs – and Er in Drawers’ insistence on the occasional bit of bad DIY – estate cars have a strong appeal locally.

Peugeot are well placed to take advantage with the svelte-looking 508SW and it was in one of these with the 1.6-litre 112bhp HDi diesels that Motor Mall let me loose the other morning.

Showroom appeal is strong and I am sure it would remain so in colours other than the Nero Black of the test car.

Getting in is no letdown. Peugeot has worked on hard on giving the 508 an upmarket feel – and succeeded.

Granted, the SW driven was in Allure specification – just one from the top of the five trim specs available on both saloons and station wagons.

But even setting enhancements like the charcoal half-leather seats aside, it was an inviting interior with that classy combination of black, piano black and discreet bright-metal highlights for which I am a sucker.

And those classy-looking backlit instruments come right across the range.

I am less convinced about the heads-up speedo display.

Instead of being projected onto the screen like others, it appears on a small glass screen that rises out of the dashtop when you turn on.

Problem is that it isn’t in the natural eyeline of the tall or long-bodied.

Still, managing with the conventional dials is no hardship.

A huge Panoramic glass roof lets light flood into the interior – unless you choose to shut it out with an electrically-operated blind.

That glass roof is standard on SW models only and they are worth buying for that alone – it comes on the top three models of the five-door range.

For a car that gives you change from £20K it felt expensive – and the range starts well below £17K.

Kit is comprehensive, with dual zone climate control (standard on all but the entry-level 508), powerfolding electric mirrors and electric windows all round – and all with one-shot operation, other makers please note.

The infotainment system includes MP3 and Bluetooth compatibility and satnav that includes local mapping.

Its functions are controlled by the sort of joystick/switch combination that is familiar in the executive sector but it proved pretty intuitive in use – it must be because I managed it without problems despite being constantly reminded that I am rubbish at IT (thank you, kids).

Cruise control and speed limiter – standard on most models – are among the plethora of functions controllable from the slightly flat-bottomed leather steering wheel.

Rear seat room is fine, with a centre armrest with cupholders, and the boot/loadbay is on the pace for the class: just over a metre long and almost a metre wide at its narrowest.

Dropping the rear seatbacks is simple despite that loadbay length, thanks to latches just inside the tailgate.

A quick pull of the latch and the seatback folds onto the cushion, giving an almost level load floor.

Estate cars come with loadbay cover, cargo net and even a dog guard but it’s not the tallest of loadbays so while your lumpy Lab might be happy with just the loadbay cover removed, wolfhound owners had best look elsewhere.

If you do get forced to carry heavy or dirty loads – I was once asked to collect 10cwt of sand, 4cwt of cement and a mixer in my lunch hour – the 508 SW does have an impressive bright-metal sill protector and underneath that floor lurks a full-size spare.

Unlike many these days, the Peugeot fires into life without the clutch being depressed – good drivers will in any case, I am sure.

And start-up is about the only time you can tell that an oil burner lurks under the bonnet.

The 1.6 112 HDi comes with a five-speed manual box although all other powerplants have six-speed gearboxes variously manual, electronically controlled manual or full-blown automatic.

Fifth gear gives about 30mph per 1,000 revs so it’s not going to be working that hard at the UK limit and I guess there’s no point lumbering the poor beast with an ultra-high sixth from which one would be forever changing down, although it is a pretty slick box.

Bald performance figures are respectable, with the benchmark metric sprint to 100km/h (62 in our money) taking 11.6 seconds, just 0.3 sec behind the 508 saloon.

Having the 180lb/ft of torque available from as low as 1,500 revs makes it a pretty eager companion, certainly when driven lightly loaded as I did.

Although all 508s share a common multi-arm rear suspension set-up, only the range-topping GT gets double wishbones at the front.

Other 508s settle for the familiar strut set-up, which is perfectly fine by me.

It’s turn-in is as sharp and accurate as any real-world motorist could want and if you do encounter understeer,  you are trying way too hard.

It’s easy to position on the road and the size feels the right side of daunting.

Importantly, Peugeot has managed to carry off its upmarket ambience and combine it with smart handling and a ride that is now more than acceptable over broken British tarmac.

Now is that relevant here?

Perish the thought.