Consumer Guide® Automotive places each vehicle into one of 18 classes based on size, price, and market position. Premium Compact Cars are similar in size but more expensive than Compact Cars. Premium Compacts have more standard equipment and an upscale image when compared to Compact Cars.

Our Best Buys in the Premium Compact Car class are the Audi A4 and BMW 3-Series. Our Recommended picks are the Acura TSX and Audi A3.

New or significantly redesigned is the BMW 3-Series.

After some two years of rumors, Lexus unwrapped a V8-powered IS at Detroit's North American International Auto Show in January. Badged IS-F, it's the first in a new high-performance series that will put Lexus toe-to-toe against Audi's S-models, BMW's M-cars, and assorted Mercedes-Benz AMGs. Lexus says its F-cars will enjoy significant power, handling, and styling enhancements over the mainstream models on which they are based.

The IS-F is due in early 2008 with a 5.0-liter V8 expected to make at least 400 hp. Shifting is via an 8-speed automatic transmission, lifted from Lexus' newly redesigned LS460 flagship sedan. Steering-wheel paddles are provided for manual shifting. To handle the big power increase over the V6 IS 350, the IS-F is upgraded to standard 19-inch wheels, specific sport-tuned suspension, and six-piston Brembo-brand brakes of larger size than brakes on other IS models. Pricing will be announced shortly before sales begin.

Meantime, sources still expect Lexus to add four-seat IS coupes and convertibles by 2010. Both should offer the same two V6 powertrains as sedans, and there may be killer V8 versions, but all-wheel drive seems unlikely. The convertible will have a hideaway hardtop. A fabric roof was originally planned, but Lexus reportedly went back to the drawing board once it learned of BMW's new 3-Series retractable.