Each sedan is an imposing creation in steel, with a rear-drive powertrain and strong performance pedigree. Differences begin under the hood. The BMW 740i holds a 282 horsepower, 4.0-liter V-8 engine, driving a five-speed automatic transmission. Jaguar's XJ6 series engine is nearly identical in displacement, but has six cylinders (inline) and sends its 245 horsepower to a four-speed automatic.

Neither is cheap, of course. The BMW starts at $58,370, plus a $1,000 gas guzzler tax, $1,350 for traction control, $2,000 for premium sound. Vanden Plas is the plush step-up version of Jaguar's XJ6 sedan. Our test Plas, sporting British Racing Green paint and a cream leather interior, totaled $66,130. That included a six-CD changer, `bonnet leaper' (hood ornament), and $2,000 weather package.

BMW calls all of its cars `ultimate driving machines,' and the 7-Series is a prime example. If not sheer perfection, it's close - a true precision motorcar. Everything is solid, sturdy, beautifully built, expertly crafted. Attractive, too.

For starters, you occupy a superb driving position on a grippy, sublimely-supportive leather seat. A 14-way power adjustment offers positions to suit anyone.

Except for a touch of body lean, handling is supreme in curves and corners. Wheels stay firmly planted, without a hint of losing grip, even in tough maneuvers.

Step on the gas from a standstill and there's slow-motion for a moment. Then it grabs hold, accelerating with astounding swiftness and smoothness. When merging, though, the heavy sedan doesn't always respond quite as quickly as hoped.

No one really needs five speeds, but shifts are barely perceptible, so why not? Braking can hardly be beat, and the engine runs in virtual silence - but with no isolated, unnatural feeling. Ride quality is top-notch, as the BMW deals effortlessly with every obstacle.

BMW's designers appear to have overlooked nothing in their masterfully-built machine, as at home on winding two lanes as on long straight stretches.

Jaguar is a car with character, benefiting from the tradition that brought it to this point. Its beautifully restyled body draws many a glance - even a leer.

Jags are as inviting inside as out, borrowing the best from their heralded past. Highly refined, they're loaded with such elegant touches as the unique split-gate gearshift lever. Wood looks so luscious, you feel you can practically dive into it.

Out on the road, the Jag proved to be not quite as perfect as some rivals. Less stable than expected on narrow roads, it didn't always feel quite fully connected to the pavement. The big Jag takes curves and corners neatly, however, its tires gripping tautly, with minimal body lean.

Acceleration is strong to highway speeds, if more leisurely at higher velocities. Pass/merge pickup is good in Normal mode, quicker in Sport mode.

The transmission upshifts with a barely-discernible twitch. Downshifts are harsher in Sport mode, with too much lag. When driving hard through curves, it's necessary to predict ahead and hit the gas early, to compensate for the delay.

Comfortable through just about any pavement stretch, lovely on the highway, the Jag consumes city bumps and holes without a whimper. Suspension tuning aims at a moderately soft ride.

Though not blissfully quiet, it's close. Acceleration produces a modest `zoom,' but hard downshifts don't yield harsh sound. A panic stop is quick and true, with just a hint of twist in final moments.

Solid and tight throughout, without a hint of looseness or flexing, the latest Jaguar is a masterpiece of design, clearly benefiting from the modern assembly techniques at the new factory in Britain. Gone are the days of creaky, leaky Jags.

In the end, those who crave a supreme road car might be happier with the big Bimmer. If tradition and uniqueness take precedence, a Jag is the way to go.

For demanding driving, Jag lovers might consider a V12; or better yet, the new supercharged XJR. BMW devotees also have a 12-cylinder choice. Nice fantasies, but we'd be happy with either of these splendid Eurosedans in any form.