The little Lupo was introduced in 1998. It shared the same basic platform and shell of its less Wall-E looking cousin, the Seat Arosa. The Lupo was a better bet, though. It looked better and with a VW badge up front, it sold in bigger numbers, too.
It was a wise move by VW, as the car it once boasted as a being small - the Polo - was getting fatter by the year. You could probably park a Mk1 Polo in the boot of the current model, such is its expansion over the years.
Yes, the Lupo was a welcome breath of fresh air. It was fun, it was (despite its teeny, tiny dimensions) practical, it was cheap (in the VW sense of the word) and it looked great. Needless to say, it sold really rather well.
We used to have a Lupo when we worked for VW some ten years ago (damn, we're old) and we chuffin' loved it. Ours was a 1.0SE in silver, with a whopping 50bhp. Set the world on fire it did not. Get us where were going in comfort and safety, all while getting 5476mpg it did. It was a bloody hoot, too. With a wheel at each corner it fell right within the 'like a go-kart' handling cliché, and that was with a mere half-century of horses under the little bonnet. Invest in one with a 1.4 16v engine (75bhp, you speed demon, you) and you'll have even more fun. They even made a 1.6 125bhp, six-speed GTi version, which was a huge amount of fun. They're a bit more than £2000, though. Sorry.
The one for us, however, much as the above picture suggests is the diesel option. With a healthy dose of torque it's still a hoot to drive and with unimaginable economy figures it's perfect in a time when fuel costs about as much as a three bed semi in Reigate.
There's no shortage of cheap Lupos, so use your £2000 wisely and shop around. Find that low mileage one that's got full service history and so on. It'll pay dividends in the long haul. You might even get some change from your £2000, too. If you do, you could always treat it to some new shoes and suspenders...
So, go forth and enjoy fun, wallet-friendly, German motoring! You won't regret it, we assure you!