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BMW 3-Series

Buying a performance car is a fraught business. Sure, you get driving pleasure, but you must also contend with high running costs and hefty fuel consumption, not to mention rocketing insurance premiums.

No bones about it, we've got a soft spot for the 330Cd. Its combination of effortless power delivery and incisive handling makes it the best BMW Coupe bar none. It's a highly refined cruiser, and the 3.0-litre common-rail motor even sounds good under load, while running costs are far lower than the equivalent petrol car's.

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Buying a performance car is a fraught business. Sure, you get driving pleasure, but you must also contend with high running costs and hefty fuel consumption, not to mention rocketing insurance premiums.

But we've found a route around all these hassles: take the diesel option. Consider the new BMW 330Cd. It averages 43.5mpg on the combined cycle, yet has a top speed of 150mph.

As many driving enthusiasts have already discovered, the Bavarian manufacturer is right at the cutting edge of oil-burning technology. Its engines are as good, or in some cases better than, the equivalent petrol models.

The company recently launched its first diesel coup�, the 320Cd, while later this year a 535d will be unveiled, complete with twin turbochargers and 272bhp. But for the time being, it is the stylish looks of the two-door 3-Series, teamed with the firm's 3.0-litre second-generation oil-burner, that will be causing problems for petrol rivals.

That's because it's a great car. The combination of coup� body and the best diesel engine in the business is a convincing one. The styling of the BMW Coup� may not be overly dramatic, but it's a tidy piece of design which incorporates a practical interior. A full four-seater with a decent boot, the BMW's driving position and seats are impressive, and the cabin is finished to a very high standard.

However, it's what happens when you twist the ignition key that makes the 330Cd so special, as there are no indications that you've kicked a diesel into life, so silent and free from vibrations is the engine. You'll soon guess what fuels the 330Cd when you hit the accelerator, though, because from 1,400rpm onwards the Coup� takes off on a 410Nm wave of torque - that is 45Nm more than an M3!

We have no doubt this is BMW's fastest diesel model so far, and it feels substantially swifter than the claimed 7.2-second 0-62mph time suggests. In fact, in real driving conditions on British roads, the 204bhp car is no slower than the 343bhp M3 - it really is that fast. The diesel's ride is far better, too, yet it isn't lacking in the thrills department.

There's no need to change down through the gears for corners; instead, let the powerplant's ample mid-range punch do the work. It's a very satisfying experience, not least due to the balanced chassis and accurate steering.

The gearbox also has a rewarding action, but with a powerband that stretches from 1,500rpm to nearly 5,000rpm, there's little need to use it. And all the time you can relax in the knowledge that you're achieving more than 40mpg. On a long run it'll get you to your destination more quickly than the M3, too, as the 330d will squeeze 605 miles out of a tank of diesel. By comparison, the high-performance petrol car will have to fill up around every 329 miles.

But most buyers will have one main reason for choosing the 330Cd - and that's the tax benefits. As the unit emits only 177g/km of CO2, this model sits in the 21 per cent tax bracket, which could potentially save a company car driver enough to pay for a decent holiday.

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