What Car? Car of the Year 2006 - Best executive car

BMW 525i SE auto
Price: £30,175
Target Price: £28,217

There can be few cars more decorated than BMW's 5 Series. The previous-generation version won our executive title seven times and is the only model we've ever honoured with a lifetime achievement award. Today's Five continues to prove a worthy heir, having fought off all challengers for a third year.

A key ingredient in this success is the near-perfect balance it strikes between handling and comfort. You get sublime body control combined with strong grip and accurate steering.

This time around, we've chosen the recently improved 525i petrol model over last year's winner, the 525d turbodiesel, due to its superior refinement and because changes in the company car tax rules for 2006 mean all diesels (not just the dirty ones) will be hit with a 3% surcharge. A top-rate taxpayer who opts for a 525i with an automatic gearbox will have to hand the Exchequer just £62 a year more than his 525d counterpart, whereas 12 months ago the difference would have been more than £400.

Admittedly, at today's pump prices 525i drivers can expect to shell out £175 more than 525d drivers over 10,000 miles, but we reckon this is a comparatively small price to pay for the extra civility. The 525i engine emits a muted, but suitably sporty, growl under full acceleration, and is near-silent when you're cruising at motorway pace. Wind and road noise are also impressively subdued.

Space and build quality are hard to fault, with the Five providing ample head- and legroom for four, plus a large, practical boot. SE specification cars are a match for rivals in terms of luxury and safety kit, although we would recommend adding the automatic gearbox, leather upholstery and metallic paint to help residuals.

Highly recommended
Audi A6 3.0 V6 TDI Quattro SE Tiptronic
Price: £31,045
Target Price: £29,078

Mercedes CLS 320 CDI
Price: £43,000
Target Price: £43,000

Mercedes E280 CDI Classic Auto
Price: £33,630
Target Price: £31,197