What Car? Car of the Year 2006 - Winner Car of the Year 2006

BMW 320d ES 4dr
Price: £23,695
Target Price: £22,260

Usually, this is the tricky bit. Choosing an overall champion causes more headaches than any other Car of the Year decision. This year, however, the discussion was short and to the point. The BMW 3 Series emerged as a clear winner.

We'd expected BMW's compact executive contender to be good, but we didn't expect it to be this good. In recent years, the best compact execs have been separated by the smallest of margins. The BMW, especially the 2.0-litre diesel version recommended here, has raised standards more than we thought possible.

Whatever your priorities, it delivers. The 320d is every bit as sharp as you'd expect of a BMW. It's still the keen driver's choice, yet it combines this driver appeal with an impressively supple ride.

Refinement, however, is the area in which BMW has really rewritten the rules. This used to be Mercedes' patch, but now BMW is the quietest car in the class, making it the preferred choice for any journey you plan to tackle. An empty road, a city at rush hour, a long haul on the motorway – we'd take the BMW every time.

Any 3 Series is good, but the 320d is the pick of the crop. The 163bhp 2.0-litre diesel hits the sweet spot of performance, fuel economy, low emissions and refinement. There's little reason to spend extra to obtain one of the more powerful engine options.

The BMW isn't the only car this year to make us sit up and take notice. The Mercedes S-Class is once again the best luxury car you can buy, but you'll need exceptionally deep pockets to buy and run one. The Mazda MX-5 has rejuvenated the roadster class, but it's not a car you'll relish driving on every journey in every weather.

No other new car is as great in so many ways as the 3 Series.