Only in the last few decades has BMW cultivated a high-end image; step back into the brand’s early days as a mainstream automaker in North America and you’ll find simple, pure sporty cars devoid of the luxury trappings now expected from a premium German brand.

In a lot of ways, the brand’s entry-level 320i model harks back to that era — but that’s not necessarily what BMW has intended.

Slotting in below the 328i at $32,750, the 320i saves buyers about $4,500 – but its real purpose is to lure in those interested in leasing a new BMW. Blessed with the deservedly high residual values that come with the brand’s blue and white roundel badge, the 320i can be yours for three years for a relatively low payment every month.

But is it worth it? We slipped behind the wheel to find out.

What is it?

Visually indistinguishable from the brand’s 328i, the 320i has been detuned to 180 horsepower and 200 lb-ft. of torque, figures down 60 ponies and 55 torquies, respectively. Both vehicles use essentially the same 2.0-liter twin-scroll turbocharged four-cylinder mated to either a six-speed manual or the no-cost eight-speed automatic fitted to our tester.

Although our tester was a rear-wheel-drive model, BMW’s xDrive all-wheel-drive is optional for an extra $2,000.

Just a handful of 320i flavors are available, the spiciest of which is the $1,300 Sport Package fitted to our test car. Comprising the expected tightened suspension, performance tires and more bolstered seats, its most appealing element might be its thick-rimmed three-spoke steering wheel.

Otherwise, the 320 is arguably more notable for what it lacks than what features it gives buyers. Our tester came optioned up with navigation and a split-folding rear seat, but it lacked power-adjustable heated leather-wrapped seats, a moonroof, auto-dimming mirrors and even an alarm system.

What’s it up against?

The 320i squares off directly against the Audi A4 2.0T, Cadillac ATS, Mercedes-Benz C250, Volvo S60 T5, Infiniti G37 and Lexus IS 250.

What does it look like?

Immediately recognizable by its twin-kidney grille snout, the 3-Series helped usher in a new design element that is making its way across the rest of BMW’s lineup. An extension on the inboard side of the car’s headlamps and the outboard side of the chrome kidney grille links the two together.

Not only does the look add complexity, it makes the car look a little lower and wider even as its hood height has increased to comply with pedestrian safety standards in Europe.

From the side, the 3-Series’ longer wheelbase compared to its predecessors is well hidden. At the rear, the frumpy look of the last generation’s tail lamps and trunk lid have been replaced by more organic, flowing lines. In fact, we think the 3-Series looks almost too much like the larger 5-Series from astern. One plus, however, is that BMW has seen fit to wrap even its entry-level model’s tailpipe with a chrome finisher.

And on the inside?

BMW added a little design flair to its smallest sedan range with its most recent redesign, but you’d barely know that from the coal black scheme in our test car. Opting for the Sport Package added a black headliner, too — and with no sunroof on board to break things up, it’s very dark inside. Somewhat relieving the look — but not necessarily imparting an upmarket feel — was our tester’s silver-painted plastic trim. Glossy wood is optional.

If the interior is a little dour and downmarket for a BMW, at least it is highly functional. BMW put extra effort into making sure that every switch and knob was easy to reach and operate from the firm, well-bolstered driver’s throne. Although our tester’s vinyl-covered seats were manually-operated, they did have power adjustable bolsters to fit a wider (pun intended) set of bodies. It’s not that we mind the lack of luxuries, it’s that we think our tester’s list price should warrant their inclusion.

Grip the three-spoke steering wheel and you’ll see clear, simple gauges with a nice LCD screen below to reveal trip computer functions. Another high-resolution screen pokes from the top of the dash like an iPad; its placement was as well-liked as it was hated. It seems that nobody can agree.

One consensus, however, was that the screen is much easier to operate thanks to an updated version of BMW’s iDrive infotainment. Although still more cumbersome to sort through than Mercedes-Benz’s COMAND system, iDrive is leaps and bounds ahead of where it used to be and it now boasts a touchpad on top of the control knob for some data entry.

Another plus is the 3-Series’ newfound space. There’s plenty of room for rear seat passengers and even the trunk is usably arranged, even though the space-robbing hinges seem a little downmarket.

But does it go?

Not as fast as the 328i, no. With the power deficit and only a small weight loss going on, that was to be expected. Still, the 320i provides reasonable thrust; just a few generations ago, it would have been considered among the quicker in its class.

That’s due primarily to the wide torque band, which comes on full steam not far off of idle. Credit also should be given to the fast-shifting eight-speed automatic, a gearbox the 320i shares with many other BMWs. Almost uncannily smooth, it it is also rapid to downshift when needed.

The 320i offers three driving modes — Eco Pro, which dials back the throttle and, annoyingly, the air conditioning compressor, Normal, and gear-holding Sport. We found Normal to be pretty adequate, but Sport brought back some of that BMW zest from years gone by. Unfortunately, the 320i also includes BMW’s start/stop system, which kills the engine at traffic lights but violently fires it back up as soon as the brake is released. Moreover, the system locks the steering wheel, meaning drivers can’t move the tiller until they’ve let the brake go. The good news is that the system can be turned off with the press of a button — and BMW dealers can set the default mode to off.

We wish the same could be said about the 320i’s steering, which is fast and direct but essentially lacking in the tactile road feel that once distinguished BMWs from their brethren. The 320i corners as well as any other 3-Series and grip is terrific, but there’s something a little bland about the way it goes about its business.

On the other hand, it proved a mostly serene and solid road warrior on the highway. Aside from some wind rush around the side mirrors, it’s fairly quiet. The suspension is buttoned down, giving the car a planted feel even over the roughest pavement we could find. There’s the feeling of more suspension travel than the last-generation 3-Series, but we were generally satisfied with the way the underpinnings went about their business.

Speaking of highway cruising, we managed to net exactly the 24/36 mpg the EPA suggests — although it’s worth noting that the 320i requires premium fuel.

Leftlane’s bottom line

As a list price value proposition, the 320i comes up short — it’s simply too expensive for the relatively low performance and stingy specification it provides.

But at the right lease payment, the 320i still shines as a BMW. Ultimately not as entertaining as its predecessors, it is more comfortable, roomier and better refined than ever before. For most buyers, that’s all they could ask.

2014 BMW 320i base price, $32,750. As tested, $37,600.

Sport Package, $1,300; Navigation, $2,150; Split-folding rear seat, $475; Destination, $925.