Having driven a standard 1.1 Saxo Phase 2 and a 1.1 106 with lowered suspension and induction, I can honestly say it's a brilliantly fun little car. The Saxo, which is basically the same car underneath, should be and apparently is just as fun to drive. BUT, the build quality is a joke. My mate's had nothing but bother with his, though he does rather thrash the arse of it.
I dunno, it's like any car really. You can get reliable one's, you can get complete dogs and sometimes it's just the luck of the draw. If it's in good nick, no serious rust and the like and at the right price it could be a good bet. But as has been said, the insurance company don't like them.
106s if I remember correctly actually have a better rep with them. Could maybe get cheaper insurance and almost as much speed in a Quicksilver or an XS 1.6, which has basically the same engine as the VTR.
If you want a change from your Punto but want to stay Italian, could also go for a later model. The mk2 and 2b don't apparently handle as well as your one, but having never tried the earlier model, I can't really give an accurate opinion. I do know my 1.2 8v hated bumps and most corners though the steering and general refinement on the motorway and the like was really good. Probably a 1.4 16v would be the best option in the engine range as it's perhaps the most trouble free engine with decent enough power for the car and none of the variator issues that can creep up with the HGT. It's also pretty cheap on insurance and looks fairly decent in standard trim
