2006 Mazda Mazda3

What's new for the 2006 Mazda 3: The smaller 2.0-liter engine gets a slight power boost courtesy of variable valve timing, while the bigger 2.3-liter engine upgrades to a 5-speed automatic transmission. The existing i and s models get divided further with new Sport, Touring and Grand Touring sub-models.

It worked. Various sources have hailed the Mazda 3 as best or second-best in the compact car segment, and it's easy to see why. Its hardware is certainly first-rate. Both of Mazda's engines (a 2.0- and a 2.3-liter 4-cylinder) are smooth operators that endow the 3 with peppy acceleration. Quick steering and a tight, all-independent suspension give it sporty handling, and disc brakes make for smooth, sure stops on every model. With the bigger engine, Mazda even throws in a 5-speed automatic with a manual shift mode. Despite some road noise and ride firmness, the 3 drives like a car from a higher price bracket.

One could also argue that the 3 is the style leader. Along with its expressive body, Mazda's interior is a place full of tight, snappy controls and nice firm seats, plus one of the world's biggest gloveboxes. Upscale features like a telescoping steering wheel are easy to appreciate, and this is one of the only cars under $25,000 to offer a navigation system. On the downside, back seat legroom and trunk space are a bit tight, though still enough to get by.

Finally, the 3's reliability and resale value have always been very good -- well above the Mazda average. Put it all together and you have a car that's every bit as safe to buy as a Civic or Corolla, and likely more satisfying to own.