2005 Hyundai XG350 Midsize luxury at an affordable price. By Tom Lankard, New Car Test Drive .com

Five years ago, when Hyundai launched the XG as the flagship of its fleet, luxury was not a word associated with the brand. After all, this South Korean car maker had made its reputation with bargain-basement compact cars, some seriously lacking in quality. Recently, Hyundai has done more than just keep up.

Quality has improved dramatically in its bread-and-butter economy models, and it now offers a range of models that provide serious competition to mainstream brands.

With continuing improvement in power, convenience, and styling since its launch, the spacious and elegantly styled four-door, five passenger Hyundai XG350 offers the trappings of cars in the so-called near-luxury class. There is still one difference, however: price. The two XG350 models still have sticker prices closer to those of plain midsize sedans in the mid-20s.

Add in Hyundai's five-year/60,000-mile bumper-to-bumper warranty coupled with its standard-setting 10-year/100,000-mile powertrain warranty, and the Hyundai XG350 represents real value.

A full range of luxury features is standard on the base model, and the only slightly more expensive upgraded model adds a few more nice conveniences. Equally pleasing is the competent 194-horsepower engine, which delivers good acceleration performance. Anti-lock brakes, electronic brake-force distribution, and traction control come standard, active safety features that can help the driver maintain control in an emergency maneuver.

Hyundai's flagship sedan comes in two trim levels: XG350 ($24,399) and XG350L ($25,999). XG350 is powered by a 3.5-liter V6, which drives the front wheels through a five-speed automatic transmission with the company's dual-gate, Shiftronic manual override system.

Befitting its near-luxury status, the XG350 comes standard with leather-faced seating surfaces, automatic climate control, power everything, a six-speaker CD stereo, heated outside mirrors, and carpeted floor mats. Wheels are 10-spoke 16-inch alloy with 205/60 Michelin tires. The 2005 XG350 also comes standard with an electrochromic rearview mirror, automatic headlights, the HomeLink integrated transceiver system, and rear-seat reading lights.

Safety is enhanced by four-wheel disc brakes with four-channel ABS, Electronic Brake-force Distribution (EBD) and traction control. Also standard: dual front airbags, front-seat side-impact air bags.

The XG350L adds a power tilt-and-slide sunroof, upgraded audio with premium speakers, a 210-watt external amplifier and a trunk-mounted eight-disc CD changer, heated seats, memory for the driver's seat, a leather-and-woodgrain steering wheel, memory outside mirrors that tilt down when reverse gear is selected, and 12-spoke 16-inch alloy wheels.

Options are limited to the eight-disc trunk-mounted CD changer for the base model ($495). Options available for installation at port of entry are rear mudguards ($35), a cargo tray ($65), wheel locks ($40) and, for the XG350L, a sunroof wind deflector ($65).