Fiat reliability today is nowhere near as disasterous as it has been in the past. Fiat are also something of an expert in the production of small capacity diesel engines as well - other manufacturers buy them from Fiat rather than developing them on their own.
I think some people look at the running costs of a car on a monthly basis (the finance repayments, fuel costs, tax etc) rather than the total ownership cost, to justify buying new. I have to say, that reading the OP, it seems he made the decision to change for financial reasons, but missed many of the bigger costs involved in owning a new car.
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