Totally redesigned for 2006, the 'baby' Lexus, and especially this IS250, is the entry-level car in the line-up, with the base model just under-cutting the ES350. There are minor updates for 2008, including leather heated front seats in the all-wheel drive model, a new finish for the standard wheels, illuminated mirror adjustment control and back-lit sill plates, along with a coin holder.

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The 250 is motivated by a 2.5 liter V6 engine, which replaced the Supra-based inline-six of the first generation. The small engine makes 204 horsepower at 6,400 rpm along with 185 lb-ft of torque at 4,800 rpm, thanks to its high compression ratio of 12.0:1 and variable valve timing. The least-expensive IS250 comes with a six-speed manual transmission that drives the rear wheels. The next step up adds a six-speed automatic, and the most expensive IS250 throws an all-wheel drive (AWD) system on top of that.

Fuel economy, as estimated by the EPA, is 21 mpg in the city cycle and 29 mpg on the highway. Interestingly, the manual transmission returns worse mileage, at 18 mpg in the city and 26 mpg on the highway. The automatic AWD car is rated at 20 mpg city and 26 mpg highway.

Standard safety fare is generous and includes airbags, traction and stability control in addition to anti-lock brakes, brake assist and electronic brake force distribution. Eight airbags as well as a tire-pressure monitoring system are part of all IS250s as well. Comfort touches include a 13-speaker Lexus Premium Sound System with a six-disc in-dash changer with auxiliary iPod/MP3/WMA port.

The list of optional equipment is even longer, and includes sport tuned suspension, aluminum trim on the interior, a different front fascia, 18-inch wheels, leather interior with heated and ventilated seats, a voice-activated navigation system with rear parking assist and Bluetooth, a radar-enforced Pre-Collision System with Dynamic Radar Cruise control, parking assist, moonroof and more.

The above are either available bundled as packages or as stand-alone additions.