Best Luxury Sports Car - BMW M3

4.0-litre coupe6-speed manual $156,000

BMW has put a heap of work into its M3 coupe, and the results are simply remarkable - whether tootling on the road or tearing up the racetrack.It was always going to be an interesting stoush this year in the battle of the affordable supercars. Last year, Audi's excellent allwheel-drive V8 RS4 sedan prevailed.

This year it had to contend with the return of a much-revised BMW M3 coupe, with a raft of electronic driving aids and a lightweight V8 replacing the venerable straight-six engine. Both cars won the hearts of the judging team for their competence and sheer driving pleasure, but when the numbers were crunched the M3 regained its top spot on the podium - a position it's occupied several times before.

Some would say it's heresy but the new M3 is no longer powered by the aurally exquisite, torque-rich straight-six, but a high-revving, hi-tech V8. It's lighter than the six-cylinder it replaces and makes a meaty 309kW at a heady (for a V8) 8300rpm. And it's a ripper. The 4.0-litre V8 has eight individually controlled throttle butterflies, race car-style, as well as BMW's double VANOS camshaft control, which helps the engine get a 'second wind' and sweetly sing at better than 8000rpm. Its on a par aurally with the previous sixes. Some might say it's better.

The 400Nm of torque is also impressive; but importantly, 85 per cent of the pulling power is available through a 6500rpm rev range, which means constant gear swapping is unnecessary. But there's a slick, close-ratio, six-speed manual anyway, for maximum effect when the red mist descends, which is something to be aware of when the conditions are right.

Unlike many high-performance cars, the new M3 coupe is equally adroit on the road as the racetrack, with amazing grip, poise, suspension control and balance, thanks to the 50/50 weight distribution. Even mid-corner bumps at high speed on constant-radius corners don't unsettle this Beemer. A carbon-fibre roof that saves 22 kg, lowers the centre of gravity and assists body stiffness is evidence of how serious BMW is in optimising chassis dynamics these days. The M3 has tarmac-tearing brakes: great pedal feel and modulation and devastatingly effective retardation, even after sustained heavy braking. And this car is the first to feature Brake Energy Regeneration.

The ABC judges aren't fans of BMW's iDrive but will concede it's been made significantly more user-friendly. And while also not fazed by new technological bells and whistles, we were mightily impressed by the new 'M-Drive' feature which, via iDrive, allows the 'pilot' to select various combinations and thresholds of the steering force, damper control, throttle sensitivity, traction control and stability control. Once programmed, these features are instantly engaged by a button on the steering wheel.

This is a genuinely impressive feature that enthusiast drivers will love. You can dial up a setting to suit the conditions and your level of skill. You can have everything switched on and looking after you or partially/totally disabled for the ride of your life, especially on a racetrack. M3 is an amazingly competent, comfortable and rewarding sports saloon that happily 'tootles' around town and offers supercar performance and thrills when given its head.

Finalists Audi RS4 Quattro; BMW 335i Coupe 3.0

Source: www.australiasbestcars.com.au

Best All-Terrain Four Wheel Drive - Land Rover Discovery 3 SE TDV6

2.7-litre turbo-diesel wagon6-speed auto $74,990

They don't come much bigger than the Land Rover Discovery. But if it's serious four-wheel driving you're after, they don't come much better either. Australia is a place where 4WDs often are used to their full capability. At the serious end of the 4WD market, competition for the car buyer's dollar is particularly fierce.

However, as the engineering and design of 4WDs has improved, buyers no longer need to accept a compromise between off-road capability and on-road comfort and performance. Accordingly, the judges were again impressed with the well-rounded performance of the Land Rover's 'Disco' 3 diesel, which again scored top of the most rugged class of all.

Land Rover Discovery 3 diesel is clearly at the quality end of the all-terrain 4WD market. It gives buyers the best list of standard features, along with the highest levels of safety and security in the class. While that means some additional dollars lost to depreciation, it is not the most expensive vehicle in the class. Prospective buyers can rest assured that once they are comfortable with the dollars, they will have one of the best-engineered 4WD vehicles on the market.

Notably, however, the warranty on offer is still nowhere near the best in this category. Although the general ride and handling characteristics of the whole of this segment has improved over the past couple of years, the Discovery has made the most ground with a tangibly better on-road handling and driving feel. This is not just the result of good suspension geometry, but good wheel control through the full range of travel, more accurate steering than expected in this group and adjustable air springs, all of which help belie its size and weight.

The V6 diesel engine is the pick of the Land Rover powerplants, providing good performance as well as good fuel economy, which is no mean engineering feat. But the diesel comes at a hefty $11,000 hit to the wallet compared to its petrol sibling. The strong pulling power of the diesel is complemented by the refined six-speed automatic, and the driveline always feels smooth. A feature of the Discovery's 4WD system is the ability to adjust the suspension via a selector dial on the centre console to cope with different road and off-road conditions. There is also an electronic hill-descent control button.

At full suspension height, the approach and departure angles, as well as the overall ground clearance, will handle even the worst bush tracks, while the degree of selectable suspension control means it does not dance around at higher speeds on corrugated roads. The Discovery's generous cabin space is complemented by some clever interior design work. This is particularly evident in the good seating comfort throughout and the adult space available in the third-row seats.

Also, the rear-seat folding mechanism, which transforms the rear into a useable hard floor, is a work of art. Discovery has grown in girth over the years and it now weighs 2.4 tonnes. Like most large 4WDs, it is not only less environmentally friendly but is also a noticeably more cumbersome vehicle than a conventional wagon to live with around the suburbs. But if a full-size 4WD is the only thing on your shopping list, or towing is a prime requirement, then this is one of the best vehicles for the job.

Finalists Mitsubishi Pajero VRX CDi; Toyota Prado GXL Diesel

Source: www.australiasbestcars.com.au

Best Mid-Size Car Under $28,000 - Honda Civic VTi

1.8-litre sedan 5-speed manual $21,490

Consistency across judging criteria keeps the ever-accessible Honda Civic at the top of its class for the second year running. Buyers looking for a mid-size car under $28,000 have never had it so good, with such a wide range of excellent vehicles to choose from. Any one of the top half-dozen or so cars in this class could have been a winner.

They all have individual strengths and appealing features. Separating them was a tough job for the judges, but when all the scores were in and the class weightings added, it was last year's winner, the Honda Civic VTi, that edged out two recent releases, Hyundai's all new i-30 and the latest incarnation of the faithful Toyota Corolla. Civic is the consummate all-rounder. It's not necessarily the best at everything but scores well across most criteria.

Accommodation wise, the Civic is a typical 4/5-seat mid-size sedan. An open cabin design with well-laid-out controls and appropriate frontseat shaping sets the scene for a comfortable driving experience. The unique two-tier dash features a clever forward-mounted speedo with a large, easy-to read digital display. Civic looks and feels like a more expensive car. By building it in Thailand, Honda has managed to keep the price very competitive, while maintaining the company's customary high-quality standard of manufacture. Mechanically, it's a refined package that is smooth, quiet and easy to drive.

There are a couple of stronger performers in the class, but the Civic VTi is still better than most. In traditional Honda fashion, the 1.8-litre four-cylinder engine is a free-revving, technically sophisticated unit that delivers reasonably energetic performance in a clean and economical manner. Its on-road ability suits the type of daily commuting a vehicle could normally expect to encounter. The ride is comfortable, yet well controlled over almost any road surface, while the handling is surefooted on the highway. It's just as much at home in city traffic or squeezing into a tight parking spot.

To identify a significant weakness is not easy. As the entry-level model in the Civic range, however, the VTi does take a few short cuts, including a single-piece folding bench seat, intruding boot hinges and the absence of electronic stability control. The level of standard equipment in the VTi falls short of many of the others in the class, but it still has most of the big-ticket items. Minor equipment updates for this year's model include a fully lined boot and auxiliary MP3 input for the audio.

In such a competitive category, where an affordable price is crucial and buyers still demand high quality, the Honda Civic has both sides of the equation well covered and is a worthy winner.

Finalists Hyundai i30 SX CRDi; Toyota Corolla Ascent

Source: www.australiasbestcars.com.au

Best Small Car - VW Polo TDI

1.5-litre turbo-diesel, 4 cylinder, 5-speed manual, 5-door hatch. Price: $22,990

The Volkswagen Polo TDI proves once again that power, features and fuel economy are the key ingredients to a successful small car. Despite the emergence of a serious new competitor in the revitalised Mazda2, the Volkswagen's diesel Polo picked up a second consecutive Best Small Car gong in 2007.

Although its considerable price premium (at $22,990, some $6000 over the other finalists) lost points in the pricing and depreciation criteria, the smallest VW scored well in the other critical scoring areas (running and repair costs, fuel consumption and environment) to snare a comfortable victory. Not surprisingly, frugal fuel use is a strong point thanks to relatively light weight and an impressive 1.9-litre, turbo-charged, diesel, four cylinder engine mated to a five-speed manual transmission.

We criticised the lack of an automatic transmission last year and it's still not available. Once, turbo-diesels weren't anything to get excited about in any vehicle, let alone a small car. But the new breed of Euro diesels are beauties, offering minimal emissions, no smoke, good power and oodles of useable torque. The Polo's powerplant delivers a modest 74kW but, as with most diesels, it's the meaty 240Nm of torque, spread between 1800rpm and 2400rpm, that impressed the most and helped the Polo match the performance score of the excellent Mazda2 engine.

And it's one of the quietest oil-burners around too, both inside and outside the car. Being a modern engine using the latest computerised engine-management technology, there is little evidence of the dreaded turbo lag. In fact, the little VW can wheel-spin away from the lights or out of tight corners if you're not careful with the right foot. In design and function criteria, the Polo scored well for its practicality and was unmatched for its ergonomics. Four doors are very practical, helping entry and egress for the comparatively spacious interior. The wide opening rear hatch gives easy access to the luggage area.

And while not getting the highest score for handling, the Polo was not disgraced on the scoreboard or on the road. It is zippy, nimble and easy to manoeuvre, whether in the shopping centre or on a bit of twisty road. And it does this without compromising ride quality - the Polo outscored all finalists in this criteria. Speaking of quality, the Polo has it in spades. It's evident from the moment you jump inside and the doors close with a reassuring 'clunk'. The safety and luxury equipment are impressive for a car in this class, and features like the reach and height adjustment for the steering column help to justify the price premium.

While the Polo's diesel variant triumphed in 2007, its petrol-engined sibling also performed strongly, scoring a top-seven finish and even out pointing the diesel in a couple of areas. It would take a long while to even get close to recouping the extra outlay over its competitors, or even the petrol Polo - but the diesel Polo is a better drive and a class act. And what price do you put on that?

Finalists Mazda2 Neo 1.5; Toyota Yaris YRS 1.5

Source: www.australiasbestcars.com.au