The entry-level X-Type sedan was introduced for the 2002 model year, and it quickly became Jaguar's best-selling car. The X-Type is a joint effort between Jaguar and Ford; built from an altered Ford platform and utilizing 20% Ford parts. This engineering union has been the target of much criticism, as many reviewers have jeered the X-Type for not living up to Jaguar's expected level of quality (materials-wise) and refinement. However, it can be had for less than $30,000. A new model-the Sportwagon-debuts this year, as perhaps the logical next step in a progression of Jaguar firsts. All-wheel drive, a relatively low sticker price, a five-speed manual transmission, and a station wagon were all once foreign concepts for Jaguar. Now, courtesy of the X-Type, all are realities.

Jaguar would dump the 2.5 liter engine in 2006, but it will be used once again to power the X-Type's base model. This engine produces 191 horsepower and 180 pound-feet of torque, and can be mated to either a five-speed manual or a five-speed automatic transmission. The larger power plant is the 3.0 liter V-6, making 227 horsepower and 209 pound-feet of torque. Both transmissions are also available with this engine, which is also under the hood of the Sportwagon. Regardless of the engine choice, drivers can expect mixed driving fuel economy around 22 to 25 mpg.

All models come standard with luxury and convenience items like leather upholstery, wood trim, full power accessories, keyless entry, automatic climate control, a power driver's seat, cruise control and heated mirrors. Available option packages include Vanden Plas (3.0 only), Sport, Weather and Premium (which includes a moon roof and a power passenger's seat). A navigation system is a stand-alone extra.

Buyers have been pleased with the X-Type's overall performance. The gas mileage is the best of any Jag, and despite the smaller V-6 engines, the mid-size sedan is surprisingly quick. Test drivers also liked the car's sporty feel and nimble handling capabilities. The availability of AWD is another favorite feature for many drivers. However, there is a consensus that many of the interior materials and components are not up to Jaguar standards, and the cost of option packages quickly eliminates the car's value.