2006 BMW 3 Series

Is it conceivable that BMW's reign as king of the compact-sport-sedan hill may not be eternal? The 3 Series has long provided a fast-moving target for wannabe competitors, but either this latest variant didn't reach far enough out or its assailants have greatly improved their aim.

Our 12 judges enjoyed throwing the 330i around our twisty 33-mile road course. Logbooks gushed with praise for the neutral handling dynamics and permissive stability-control nanny. The weighty but communicative steering drew raves (our tester had the base, noncomputerized helm), as did the powerful and reassuring brakes and supportive front seats that give a welcome hug. The BMW has a tight, controlled, almost spring-loaded feel when driving. There's nothing lazy about its steering or suspension. BMW still holds the high ground in the chassis department with the peerless way in which it draws handling raves, while providing a supple, compliant, and comfortable ride.

But Lexus's latest IS 350 has the 330i outgunned in the power department, its new V-6 throbbing out 306 horsepower to the silky Bavarian straight-six's 255. While there's no stick offered with the big motor at Lexus, its paddle-shifted six-speed auto works exceptionally well, and a few testers dared to criticize the BMW's stick for longish throws and a reverse position that can be confused for first.

Another Bavarian vulnerability is the interior design, which was seen as one of the most somber and ordinary of all the premium-class COTY contenders. There were ergonomic nits to be picked--from the stubby electronic turn-signal switch to the multistep start procedure to the stereo that's a threat to anger management--even in this iDrive-free test car.

Consider all the above in light of 330i pricing that struggles to undercut $40,000 and can top $50K (expect real-world 325is to sell for about five grand less), and the 3's reign looks decidedly vulnerable. But for now, long live the 3.