While it should be the automotive equivalent of a mullet (mixing neither business nor party correctly), the entry-level luxury sport sedan has become the default option for American buyers who need a lady in the streets and a freak on the track.
Until recently, buyers in this category had two options: the BMW 3 Series or something that wasn't as good as the BMW 3 Series. But times have changed and BMW's spot at the top of the pecking order is as unstable as it's ever been. The base engine is now a turbocharged four-cylinder, and challengers to the throne are getting exceptionally good.
Back in March of 2012, the 328i barely beat two very good cars to defend its position. Now, there are two new challengers that may give it even more trouble: the 2014 Lexus IS and the 2013 Cadillac ATS.

So we picked a price, mandated that all entrants have an automatic transmission and a sport package, and set out to find which is the best $45,000 sport sedan: the 2014 Lexus IS 250 F Sport, 2013 Cadillac ATS 2.0 Premium or the 2013 BMW 328i M Sport Line.
The Reigning King: 2013 BMW 328i
BMW's iconic 3 Series got a thorough redesign for 2012 that brought with it dramatic new headlights, an updated interior with a cockpit angled toward the driver (by 7 degrees, says BMW), a larger footprint, more interior space and most importantly, a new 2.0-liter turbocharged four-cylinder hooked to an eight-speed automatic.
This new 240-horsepower power plant doesn't mean this 3 Series is any cheaper, though, as it starts at $37,745. Tacking on the necessary-for-this-test M Sport Line trim (18-inch wheels, summer tires, sport suspension, sport seats, special wheels) adds $3,850 and gets dangerously close to our limit. BMW finished off the budget with the Premium package and heated front seats for a total cost of $45,745.

The 328 has standard dual-zone climate control, auto stop-start and an iPod interface, but there's no navigation system. No back-up cameras/sensors either. No shift paddles. No goodies.
This is as basic a 3 Series as you're likely to find short of a custom order.
Back in the Game: 2014 Lexus IS 250 F Sport
Lexus went all out with the 2014 IS 250 and only charges an $855 premium over the outgoing model. For $36,845, the new IS gets HID headlights, LED daytime running lights, Drive Mode Select, wheel-mounted shift paddles, the wonky Remote Touch Interface mouse-thing, dual-zone climate control and a 4.2-inch multi-information display.
Part of the IS 250's value supremacy is due to the lone powertrain option: a 2.5-liter V6 making 204 hp and 185 pound-feet of torque bolted to a six-speed automatic. In fact, it's virtually the same V6 that Lexus offered last year. And every year since 2005.

Even in normal trim, the new Lexus IS a looker. Add on the $3,115 F Sport package and the design goes from sculpted to downright jacked. Most notably, a wicked one-piece grille fills in the more pronounced spindle grille. Backing up the striking looks of the F Sport's appearance are a sport-tuned suspension, 18-inch wheels with performance tires, sport seats and a slick sliding tachometer derived from the mighty LFA.
Upping the cool factor, this IS 250 F Sport is equipped with the Navigation package with Mark Levinson stereo ($3,225), and a $600 blind-spot monitoring package.
The Lexus offers a ton of features, and a sport pack, for only $43,785.
A Challenger Appears: 2013 Cadillac ATS 2.0 Premium
While not exactly a square peg in a round hole, this 2013 Cadillac ATS needs some edges rounded off to properly fit into this comparison. Bought for our long-term test fleet, this ATS carries an unfortunate sticker price of $51,510. Getting it into our test range isn't hard.

With a starting price of $35,795 with the six-speed automatic and 272-hp, 2.0-liter turbocharged four-cylinder, the ATS makes a compelling price argument. To get the required sport tuning you have to upgrade to the $45,790 ATS 2.0 Premium (including destination). This trim level also gives the buyer a mechanical limited-slip differential, CUE infotainment/navigation system, performance eight-way power front seats, rear park assist with camera, 18-inch wheels with summer tires, HID headlights, Bose premium stereo, automatic wipers and, well, you get the idea. It's loaded.
For the sake of comparison, we had to disregard the $3,200 Driver Assistance package, and we'd happily forget the $850 polished wheels (nice, machined aluminum ones in the same size are standard). If we remember it has a sunroof and heated seats and refuse to use the driver assistance stuff, this car has an effective as-tested price of $47,440.
BMW 328 |
Cadillac ATS |
Lexus IS 250 |
|
| Price as tested | $45,745 |
$47,440* |
$43,785 |
| 0-60 (sec.) | 5.4 |
6.3 |
7.5 |
| Quarter-mile | 13.8 @ 97.7 |
14.5 @ 93.9 |
15.6 @ 89.0 |
| 60-0 braking (ft.) | 109 |
112 |
118 |
| Slalom (mph) | 67.7 |
70.4 |
67.8 |
| Skid pad (g) | 0.90 |
0.89 |
0.84 |
| Edmunds fuel economy (mpg) | 25.0 |
21.0 |
21.5 |

3rd Place: 2014 Lexus IS 250 F Sport
In short, Lexus brought a teaspoon to a gunfight.
Consider the track test numbers. At the 60-mph mark, the Lexus is more than a second behind the Cadillac and more than 2 seconds behind the BMW. At the end of the quarter-mile, the Lexus has closed a bit, but the gap is still nearly 2 seconds. To put that into perspective, the acceleration difference between the BMW and the Lexus is the same as the one between the IS 250 and the Toyota Prius. You think Prius drivers are slow? That's how every 328i driver is going to feel about the IS 250.
Where the Lexus does trump the BMW is in steering feel and precision. We'll say it again: The 2014 Lexus IS 250 F Sport has better, more precise, sharper and more communicative steering than the BMW 3 Series. Unfortunately, thanks to substandard Bridgestone Turanza ER33 tires, most of that communication is, loosely translated, "Please slow down. I have no grip. Here's some understeer!"
The precision steering and taut body controls helped the Lexus barely edge the BMW in the slalom. On the road, the listless engine combined with the gripless tires keeps the Lexus from keeping up, let alone leading. Head into a corner at the same pace as the other two and you'll understeer across the lanes into enemy territory. Slow down too much and you're forced to rely on the engine, which never delivers.
Slow-in, slow-out isn't fun and it isn't fast. It's not terribly fuel-efficient either, as the Lexus returned 23.4 mpg in our 116-mile test loop and 21.5 combined.
Though Lexus is seriously outgunned with its entry-level powertrain (there is, of course, an IS 350, but there are also a BMW 335i and a Cadillac ATS 3.6), it takes the cake in terms of interior refinement and build quality. Highlighting the all-new interior are the F Sport-specific seats, which swaddle the driver in a cushy leather bucket that deftly blends comfort and performance in a way we wish the nonadjustable suspension could manage.
The Lex's interior is dominated by the mouselike Remote Touch interface. When equipped with the Mark Levinson/Navigation package, this controls a 7-inch screen with the Enform App Suite as well as advanced radio controls, climate controls (primary controls are on the center console), personalization features and, of course, navigation. In theory, a remote-touch device is a solid idea allowing more freedom than a scroll wheel with none of the hassles of a touchscreen. In practice, it's the worst of both worlds. Thanks in part to the harsh suspension, picking a correct spot for the mouse is difficult and once you've incorrectly clicked, there's no hard "back" button. Further, as all of the icons are the same dull colors, differentiating among them without serious eyes-off-road time is difficult.
Though it gets a ding for the Remote Touch system, Lexus scores well on the rest of the interior. The cockpit isn't tight, but it's narrow and driver-focused. The backseats were second best in this test, with tolerable headroom for a 6-plus-footer. Trunk space is listed at 13.8 cubic feet, the most voluminous of the group.
Make no mistake, the 2014 Lexus IS 250 F Sport is a very good car, if an imperfect sport sedan. Many buyers will find it easy to forgive the lack of grip and power in exchange for the low cost of entry and the exemplary, if awkward, interior.
It's a good value, but in the end it was edged out by...

2nd Place: 2013 Cadillac ATS 2.0 Premium
The Cadillac and Lexus were neck-and-neck in this comparison until the very last minute. The Lexus bests the Cadillac in feel, feedback, build quality, seats, interior space and price. Those are hard hurdles to clear.
Credit the Cadillac's 272-hp engine for mowing down some reservations, while the rest were dispatched by the Caddy's ride quality and the ease-of-use of its cabin.
Whereas the IS 250 turned in decent handling results and then got walked on the road, the Cadillac took everything we dared to throw at it regardless of the venue. The operative word there is "dare," as the Lexus looks to have stolen all of the feel from Cadillac, as there's simply no sensation through the wheel. The only way to know you still have any grip left is to check and see if you're still on the road. Yes? Good. Go faster next time.
Trying to hustle the 2013 Cadillac ATS on a technical drive is a bit like trying to ride a mule while drunk: It's sure-footed and trustworthy, but damned if you're still not a little spooked. We found out on our test track just how good our Cadillac ATS handles if you just repeat the mantra "I think it can, I think it can" and push.
Turning in a vicious 70.4-mph slalom performance, the Cadillac ATS barely looked flustered. Flick the adjustable magnetorheological shocks into Sport mode and the ATS turns from damsel to daredevil. Compliance goes to nearly nil, ride quality gets abusive and the Cadillac sticks to the road like a week-dead possum.

Once again, when putting that grip to use, the Cadillac lacks positive driver interactions, as the engine sounds as if it was sourced from John Deere. Industrial or not, the Cadillac's power plant produces a full 68 hp more than the IS 250 and 32 more than the BMW, while returning 21 mpg during our testing. On the 116-mile Edmunds test loop, the ATS returned a 2nd-place 25.5 mpg.
Unlike the IS 250 F Sport, which is always in aggressive mode and therefore gets jittery and unsettled on broken pavement, the ATS's multimode suspension does exactly what it's supposed to. Either of the settings on their own would be the death knell for a car in this test — one too firm, one too soft and bouncy — but on-the-fly adjustability makes it work.
The final stake in the IS 250's heart came when comparing its interior with the ATS. While the IS's seats, steering wheel and instrument panel are vastly superior to those found in the ATS, Cadillac's User Experience (CUE) touchscreen is more usable, and requires less time with your eyes off the road than the remote touch mouse in the Lexus. This feature includes an 8-inch display screen that controls navigation, audio, car settings, climate and a host of apps including Pandora. It works very much like your iPad, but slower and with an annoying, unnecessary confirmation vibration. With a faster processor, CUE could be a knockout. As is, it's a front-runner. The buttonless center console keeps Cadillac's interior design cleaner, less polarizing and easier to figure out than the Lexus.
Lexus wins back another point from Cadillac in both rear headroom and cargo capacity. The Cadillac, with 10.4 cubic feet of cargo space, is dead last and the rear headroom is dismal. If lugging things or carrying rear-seat passengers is a priority, this will be a concern.
Without the FE3 suspension and the turbocharged engine, the 2013 Cadillac ATS would have clearly fallen to the IS 250. Until Lexus ups its engine game, the Cadillac is the better car. Then again, when it comes to our first choice there is a clear winner.

1st Place: 2013 BMW 328i M Sport Line
Putting a BMW in 1st place in a comparison is like going to NYC for a slice of pizza or Chicago for a hot dog; it's so common it's almost cliché.
It's also the right decision.
This despite the fact that the 2013 BMW 328i M Sport Line was the least well-equipped car in this comparison test and carried the second-highest price. The haters will say that the price difference is a BMW-badge tax, but a quick drive in the 328i shows where the money really goes.

Through our slalom, the BMW's suspension was softer than we'd like and hated the rapid transitions. On the open road, where 600 feet of left-right-left-right exchanges at nearly 70 mph are a rarity, the BMW is by far the quickest and most confidence-inspiring. Even using its aforementioned mantra and the knowledge of a higher slalom speed, the Cadillac and its 272 hp simply can't hang with the BMW.
While we'd like to see paddle shifters at this price and with an M kit, the push-to-downshift shifter works perfectly, instantaneously firing off rapid, rev-matched downshifts. There's no debate here, as the eight-speed automatic and turbocharged engine in the 328 is the best powertrain in the segment. The wall of torque is endless and the throttle response is dead-on.
Like the Lexus, this BMW has a nonadjustable suspension. Unlike in the Lexus, however, this proved an asset, as the BMW was the most comfortable around town and the most forgiving of surface imperfections. Humps and dips that caused hysterics in the other two were well damped in the BMW. BMW's exceptional front seats also earned their stripes here. The IS's seats wow in the first 20 minutes, but after hours on twisty, real-world roads and sprawling highways, the 328i's buckets were the ones we pined for. Wonderfully adjustable with almost orthopedic support and solid thigh support.
The BMW didn't win this on powertrain alone. The interior impressed us as well. Lexus has all of the flash in this segment, while BMW has all the class. The instrumentation is old school, but it's clear, precise and uncluttered. Similarly, the rest of the interior controls are designed to be used by a driver while the car is in motion. HVAC buttons are on the center console and have a positive action. Same goes for the main stereo controls. Advanced audio and car controls are hidden behind a 6.5-inch display.
And after a decade of tinkering, iDrive borders on intuitive and features the crisp graphics and easy-to-use menus that Lexus and Cadillac have yet to master. Lexus and BMW are still in the just-past-Beta phase of development on their infotainment systems, while BMW has firmly established technology. Even without navigation or apps, the system still impresses with speed, clarity and ease of use. It doesn't matter how neat a feature is on the showroom floor. If you can't use it while driving, what's the point?
BMW also offers 13 cubic feet of cargo volume, with in-trunk levers to fold down the rear seats for even more carrying capacity. Rear seat passengers were also most comfortable in the 328i. Nobody was wearing top hats, but nobody needed to crane their neck to scary degrees as they did with the Caddy.
Finally, the BMW wasn't simply the fastest of the group, it was also the most fuel efficient. During our test we averaged 25 mpg and on the 116-mile Edmunds test loop, the 328i managed an astounding 33.6 mpg. Those are numbers that any compact car could be proud of, let alone one that can run 13-second quarter-mile times at the track.

It's this combination of supreme powertrain performance, class-leading ride quality and predictable, confident handling that vault the 2013 BMW 328i to 1st place in this comparison and an "A" grade in Edmunds recommended ratings. Both the 2014 Lexus IS 250 F Sport and 2013 Cadillac ATS 2.0 Premium received "B" ratings.
So BMW won out again, though by the skin of its turbocharged wündermotor. The writing may be on the wall, but for now the BMW 3 Series is still a step ahead.
BMW and Lexus provided Edmunds cars for the purposes of evaluation. Edmunds purchased the Cadillac ATS for the purpose of a long-term evaluation.
The Edmunds TCO® estimated monthly insurance payment for a 2013 BMW 3 Series in CA is:
Most Recommended Comments
By realitycheck3
on 05/12/13
11:10 PM PST
It is getting old how biased your opinions of BMW's are. Running either stripped down or overly optioned out competition to better the BMW's standing is becoming clear to your readers and it's just plain old now. For example: The 2013 Cadillac ATS 3.6L RWD can be purchased currently for $45,990 with nav and all options which would easily trump that $45,745 2013 BMW 328i M Sport Line which you just happened to leave out the MANY options that any normal person would have to pay extra for pushing a comparable 2013 BMW 328i M Sport closer to $49,931. Almost $4k more with far less performance or quality. Like I said, start comparing apples to apples and start providing some honest reviewing Edmunds. Your losing readers for a reason.
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By fortstring
on 05/13/13
1:15 AM PST
realitycheck3 makes a good point. You could have easily optioned an F-Sport IS 350 and still undercut the price of the base BMW 328i. Hm, thanks for checking me there, realitycheck3.
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By 1987xjug
on 05/13/13
9:06 AM PST
What a crappy review. First of all everyone on the planet drives the BMW so there is no uniqueness to having that car. The IS is just plain hideous as are most Japanese cars and your comments about build quality, interior, seats, steering wheel and instrument panel are vastly superior" is really subjective. I've driven Mercedes for years and evaluated the 3 Series, and the ATS but ignored the ugly Lexus. The ATS is a much more attractive car and unique in so many regards. In real world driving by real people the ATS is more than a match for the 328 especially in terms of power plant, efficiency and interior. The BMW is bland and characterless. As a matter of fact as you rightly point out the ATS out performs both cars and returns better mileage. The trunk space is more than adequate and with the folding rear seat, voluminous. Personally I hate what the government did to the taxpayers and giving away GM to the UAW, but this is a damn fine car that is world class in every respect. I love my Black & Red 3.6 Premium and the upgraded wheels you shunned are stunning.
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