2004 BMW 3 Series 325xi AWD 4dr Sedan (2.5L 6cyl 5M)
We've had our 325xi sedan for just over a year now (bought new), and we still absolutely love it. The BMW slogan "The Ultimate Driving Machine" is apt; this is an exceptionally well-designed car, whose handling and comfort are unsurpassed. If you want to forget you're on the road, buy a Lexus or Mercedes; if you love to drive and want to enjoy it, buy this car. And yet it doesn't sacrifice interior comfort--this is a luxury car at the same time in creature comforts. It's been highly reliable so far; the only problem we've had was the oil light coming on, which necessitated a replacement sensor (but which didn't affect driveability in the meantime).
Responsive steering; powerful brakes; a smooth, powerful engine; and an intelligent automatic transmission--in short, the driving components. It also handles wonderfully in snow and ice; the AWD and ABS can pretty much handle sheet ice. Off ice, it's almost catlike in its agility.
The trunk is a little small, and the sill is a bit high for long things (even with the flip-down rear seats); could use more storage space inside, and a hook to bungee the trunk closed; one front cupholder is largely obscured by the armrest. 325xi could use a little more torque at 0-20 mph.