In late 1999, the Ibiza was heavily facelifted in terms of design and engines.
Some have considered the 1999 model the third generation Ibiza and with good reasons.

Part of the VW family, the new Ibiza featured a completely new interior design with VW quality finishes. The all-new dashboard was nicely angled for the driver, while all controls had a great feel to them. Everything was nicely placed and the overall quality of the materials used was unusual for a supermini.

The new Seat Ibiza featured a new split grille and refreshed taillights, as well as revised funky taillights. The redesigned bumpers now featured black moldings to protect them from scratches. All these changes, together with the 16-inch alloys gave the car a more aggressive look than before. If the 90s’ Ibiza looked just like a box on wheels, the 1999 model had a curvy and sleek design.

While the Ibiza was not a fast car, it had a little fun factor and felt faster than on paper.

Offering good value for money, the Ibiza came with standard air-conditioning, electric windows, and central locking, besides the great built quality.

All engine options were carried over from Volkswagen and the customers could choose between numerous options, including a powerful 1.9-liter Diesel unit with 90 hp.

Even with 90 hp, the Ibiza was hardly hot hatch materials. However, the low fuel consumption was hard to beat.

The Ibiza was a budget car as it was cheap to buy, cheap to run, but still felt solid and pulled really well.

Even in terms of interior room, the Ibiza offered more than the Ford Fiesta or the Citroen Saxo.