2002 Best Luxury Car Under $40,000

For having such a genteel name, the "entry-luxury" segment of the automotive market is a damned bloody arena. Each model year is marked by one automaker or another going once more unto the breach in some new way. Some, such as Cadillac, initiate a radical new design language; others, such as Jaguar, rely on endearing visual cues from ancestral models; still others, such as Audi, go longer, wider, and taller.

And then there is our winner, the handsome and familiar car you see above. Changes this year to the BMW 525i-the $36,595 sedan and the $38,395 wagon-are subtle, building on the basic goodness of the 5-series chassis. That's the BMW way. This All-Star award, then, is proof that sometimes the best battle strategy is simply to sharpen the sword you have.

Although the 525i is first in the 5-series lineup, nothing at all about it feels entry-level. The magic of the 5-series family-of every BMW product, perhaps-is that each variant has a distinct and compelling personality. So choosing the 525i, with its smaller engine, can be justified by something greater than its smaller price tag.

Still, how does a five-year-old car triumph over such a crowd of talented newcomers? And how can the base 5-series model subdue so many trimmed-out and powered-up veterans (including BMW's own stellar 3-series models)?

This All-Star award does prompt some tough questions. Rest assured, however, that the answers are all found in the same place: behind the wheel.