2008 Premium Compact Cars
Volvo's C30 premium compact hatchback is new for 2008.

For full-line manufacturers of premium cars, a company's entry-level compact is almost always its most popular model. Buyers can usually get most of the luxury features offered on the top-line cars--along with the manufacturer's prestigious badge and dealer's kid-glove treatment--for a fraction of top-line prices.

What to Look For in a Premium Compact Car

As with any compact, size matters. Premium compacts suffer the same limitations as their non-premium counterparts in terms of interior and cargo space, so making sure you and your intended passengers can fit and live in harmony is of utmost importance. In most cars in this class, an average-size adult can fit behind another average-size adult, but one or the other might not enjoy spacious accommodations. Cargo room is also limited, so for many buyers, the same money would be better spent on a loaded midsize car, or a lower-priced premium midsize car.

Four-door sedans dominate the class, but many models offer a wagon, and one offers a four-door hatchback. Three two-door convertibles, a pair of two-door coupes, and a lone two-door hatchback are in the mix as well. Note that it's difficult to access the rear seat on two-door models, and all have a rear seat that can hold only two passengers, who typically get less legroom.

Many cars in the premium compact class exhibit a sporting flair, but some buyers may not appreciate the sacrifices made to attain it. Low-profile tires fitted to those snazzy large-diameter wheels make the ride suffer. The combination may look great, but especially when the wheels are combined with a stiffer sport suspension (as they often are), the car may ride harshly over bumps. Since it could take some looking to find bumpy patches on a dealer's preapproved test-drive route, scouting out bad pavement in advance is advisable. Also, these low-profile performance-oriented tires are often considered "summer tires," which means they aren't designed to grip well in snowy or cold conditions. If that's something you'll likely encounter, make certain you get all-season tires, or switch to all-seasons or winter tires during the cold months.

Most buyers of premium compacts aren't as price-sensitive as those considering traditional compact cars, but that doesn't mean they don't want good value for the money. Some premium compacts don't come standard with what many feel are required premium features, and adding them can be expensive. A competing model that has a higher base price but comes nearly loaded may end up costing less in the end.

Best Buys and Recommendeds

Best Buys
Audi A4
BMW 3-Series

Recommendeds
Audi A3
Saab 9-3

Also, cars that include free scheduled maintenance can save you hundreds or thousands of dollars over the life of the plan. If you intend to own the car for more than four years or 50,000 miles--the length of all bumper-to-bumper warranties in this class--a car with an extended powertrain warranty may offer peace of mind if nothing else.

One more point. Possibly due to the plethora of complex electronic gizmos offered on today's premium cars, some models in this class have earned below-average scores in recent reliability surveys. While that doesn't mean a failure will necessarily leave you stranded, it might mean more trips to the dealer's service department. Making sure a free loaner car is included with the warranty--or if not, is written into the sales contract--might make these events less inconvenient.

Safety Concerns

All cars in this class come standard with nearly every modern safety feature, including ABS, traction/antiskid control, front side airbags, and curtain side airbags. The Audi A3 and A4 also offer optional rear side airbags, and the BMW 1- and 3-Series along with the Saab 9-3 offer an OnStar-like assistance system. If you live in a snowy area, all-wheel drive might be considered a safety feature, and it's available on all models except the BMW 1-Series and Acura TSX.

Out of the Ordinary

There are a number of features available on these cars that aren't commonly offered outside the premium class. Seat and mirror memory stores the settings programmed by two or three different drivers and is handy when multiple people use the car. Wireless cell-phone link detects the presence of a Bluetooth-enabled cell phone in the car and transmits the signal through a dash-mounted microphone and the car's speakers. Keyless access and starting automatically unlocks the door as the driver approaches and allows starting the car with the push of a button, all with the key still in pocket or purse. Adaptive cruise control automatically maintains a set following distance. Steering-linked headlights (also called Adaptive headlights) turn in the direction the front wheels are pointed to improve nighttime visibility around corners. Blind Spot Information System senses when a vehicle is in your left or right blind spot and illuminates a warning light on the appropriate side-view mirror.

Satellite radio and a navigation system are offered on nearly all vehicles in this class. Beware the latter, however, as the necessary screen often takes up space on the dash normally reserved for the audio (and sometimes, climate) system. As a result, those controls have to be incorporated into the navigation screen, which almost always complicates their use, and may even relocate the CD player to a less-convenient location.

On the Horizon

Although it's a bit early for much 2009 model-year information to have leaked out, there are a few upcoming changes that have either been officially announced or are strongly rumored.

The Acura TSX will be redesigned for the 2009 model year, as will the Audi A4. BMW's 1-Series coupe, which was introduced in spring 2008, is due to be joined by a convertible version by summer. In the fall of '08, the larger BMW 3-Series will likely add a turbodiesel six-cylinder engine, the first in the premium compact class. Jaguar's X-Type will be dropped after the '08 model year, and no replacement is scheduled. Lexus is due to add a coupe version to the IS line for 2009, and Mercedes will likely add a V8-powered C63 to the C-Class.

That's a lot of movement in less than one-year's time, an indication of how hot and competitive the premium compact segment has become. As such, it doesn't appear as though the popularity or importance of this class is likely to diminish any time soon.

Available Premium Compact Features

Adaptive cruise control: BMW 3-Series, Lexus IS

Blind-Spot Information System: Volvo C30/S40/V50

Cooled front seats: Lexus IS

Cooled glovebox or center console: BMW 3-Series, Saab 9-3

Flex-fuel engine (can run on E85): Mercedes-Benz C-Class

Heated rear seats: Audi A4

High-performance versions: Audi A4 (V8-powered S4 and RS 4), BMW (turbo six-cylinder M3), Lexus IS (V8-powered IS F),

Hill-holder clutch: BMW 3-Series

Keyless access and starting: BMW 1- and 3-Series, Lexus IS, Volvo C30/S40/V50

OnStar-like assistance system: BMW 1- and 3-Series, Mercedes-Benz C-Class, Saab 9-3

Remote convertible top operation: Saab 9-3

Remote engine start: Volvo S40

Retractable hardtop convertible: BMW 3-Series

Second-row integrated child seat: Volvo V50

Standard run-flat tires: BMW 3-Series

Steering-linked headlights: Audi A4, BMW 1- and 3-Series, Lexus IS, Saab 9-3