The newest entry in the extremely competitive premium compact saloon category is the third generation of Lexus’ IS sedan that brings with it a sharper design with more character inside and out, along with the promise of improved dynamics.

It doesn’t have an easy job as all contestants for the title in the segment have many strong points, with the BMW 3-Series, now in its sixth iteration, having the added bonus of being the most recognized and successful player for almost three decades now.

Naturally, the Teutonic 3-Series is the car to beat for the throne and it is this model that Edmunds put the Lexus IS up against in its latest comparison test, while also adding the new Cadillac ATS for good measure.

In particular, it chose the basic U.S. market models of the three competitors: the BMW 328i M Sport that features a 240hp 2.0-liter turbocharged inline-four; the Cadillac ATS 2.0 Premium with a 272hp turbocharged four-cylinder and the Lexus IS 250 F Sport with a naturally-aspirated 2.5-liter V6 rated for 204hp.

For all its improvements and in what concerns the entry-level version of the IS, the Lexus model couldn’t come on top of the other two challengers, but according to Edmunds, it is worth noting the testers found that the Japanese car’s steering feel and precision “trumped” the BMW, something that should have the Bavarians worried…

For the full test results, check out the video that follows.

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