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Lexus IS250 SE

Individuality counts for a lot in the executive car market - which is why the popularity of BMW's 3-Series is a double-edged sword.

Great to look at, incredibly refined and without doubt the most comfortable and well equipped compact executive saloon on sale, the new IS is an excellent all-rounder. Add in superb build and sound residuals, and the Lexus is a strong alternative to German rivals. A limited engine range - with just one petrol unit available at launch - is the only thing holding it back.

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Individuality counts for a lot in the executive car market - which is why the popularity of BMW's 3-Series is a double-edged sword. It may well be a brilliant machine, but the sheer number on British roads puts some buyers off.

Since its launch back in 1999, the Lexus IS has been a solid alternative, with a fine mix of refinement, driver involvement and comparative rarity. The trouble is, rivals have moved the game on in the past few years - so can the new IS do the same?

Bigger all-round and with a fresh 2.5-litre V6 engine, the car goes on sale next month, from £22,400. In the US, there will be a 3.5-litre version, but in Europe we'll get a 175bhp 2.2 diesel, due in March, instead. A 5.0-litre V8 flagship, offering 400bhp, is expected later. Whichever you choose, the IS is striking, with some of the sleekest looks of any compact exec on sale.

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A low nose, rising waistline and high tail give it much more road presence than German counterparts. But what's really impressive is that, rather than copy rivals' style as it did in the past, Lexus is going its own way now.

Inside, the confident design continues. Distinctive dials make the dash appear classy and expensive, and material qual-ity is excellent, particularly the soft-feel dashboard. Our only gripe is the centre console, which shares too many buttons with sister brand Toyota.

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Measuring 175mm longer and 75mm wider than its predecessor, the IS is far roomier inside, but is still more cramped than class leaders. Up front, the driving position is widely adjustable, and the superbly supportive seats and small glass areas give the cabin a cosy feel.

Under the skin, the IS benefits from new double-wishbone front suspension and a multi-link set-up at the rear, most of which is made of lightweight aluminium. The Lexus rides better than any car in its class, gliding over bumps and smoothing out ruts with ease.

Minimal wind noise means this is a brilliant motorway companion, too, while accurate steering and agile rear-drive handling make it a far more entertaining driver's car than its predecessor.

Acceleration from the 204bhp 2.5-litre V6 is strong, with 0-60mph taking just over eight seconds. However, it's the engine's smoothness that impresses more, particularly when coupled to the seamless six-speed auto - which also offers steering wheel-mounted paddle-shifters. Specify this £1,000 option and the Lexus is more economical and emits less CO2 than the standard six-speed manual, due to closer gearing. Even so, figures of 31mpg and 214g/km mean business drivers will be better off with the oil-burning IS220d.

While prices appear steep next to German rivals, the new IS is superbly equipped. All models get eight airbags, cruise control, a six-CD player, keyless entry, climate control and alloys, while the SE adds leather and electric seats and the SE-L gets rain-sensing wipers.

But the best feature is the dealer network - voted number one in Auto Express's Driver Power 2005 satisfaction survey. Couple this with the fact that the new IS is better in every way, and it's a fine way to stand out from the crowd.

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