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The third generation was introduced in 2004, and it is completely different from the previous two. Abandoning the sedan format, the Toledo Mk III has a very controversial design, penned by Walter de'Silva. It is a compact MPV with the Altea's front section and a rear end inspired in the not very successful Renault Vel Satis, paying homage to the original Toledo's hatchback/sedan rear. All pretense of a sporty identity was thrown out, in favour of a more upscale and alternative image. A large 500 L (DIN) boot is its most interesting feature. Under the bodywork, the Seat Toledo uses the same underpinnings as the VW Golf Mk V.

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