Because every new entry in the 2007 Dodge Caliber’s increasingly competitive category will ultimately have to compete on price, Dodge product planners were faced with a serious challenge. Their goal was to create a new vehicle that could be both affordable enough to place it within reach of first-time new car buyers while still offering enough desirable content to draw in more upscale prospects who might not ordinarily consider a compact car.

To that end, the entry-level Caliber SE model is priced at a relatively affordable $13,985 (all prices include the $560 destination charge). For that modest amount of dough – about $400 less than the outgoing Neon – you get niceties like cloth upholstery, a 60/40 split-folding rear seat, an AM/FM/CD stereo with auxiliary audio input jack for connecting an iPod or other MP3 player, and multi-stage front and side-curtain airbags. Despite these desirable standard features, we have to note that this base model may be a bit too basic for the tastes of modern car buyers with its quaint details like crank windows and manual door locks. The good news is that you can pile on a wide array of good stuff including power windows and locks, air conditioning, upgraded audio systems, and more from a long list of extra-cost options.

Step up to the midrange Caliber SXT trim level and you get all the expected modern trimmings, plus reclining rear seatbacks and a fold-flat front passenger seat. Add an extensive array of really cool bells-and-whistles and the $15,985 starting price starts to sound pretty reasonable.

At the top of the Caliber heap is the sporty R/T model which adds a more powerful engine and all-wheel drive. Other hardware upgrades include sport-tuned suspension and steering components, and 18-inch alloy wheels. Caliber R/T prices start at $19,985 and top out at $24,620 for a fully-loaded example.

The 2007 Dodge Caliber also breaks the compact car mold by including some very important safety features, either as standard equipment or extra-cost options. For starters, all Caliber models come equipped with five airbags. Multi-stage front airbags for the driver and front passenger adjust the force of their deployment to match the severity of an impact. A knee-blocker airbag for the driver adds additional protection. Side-curtain airbags, which help reduce the likelihood of head injuries for outboard passengers in both rows, are also standard. Torso-protecting side-impact airbags are available as an option on all Caliber models.

Antilock brakes, another must-have safety feature in our book, are optional on SE and SXT models with a manual transmission and standard on SE, SXT, and R/T models with the CVT automatic. The system also includes an emergency brake assist feature which helps bring maximum braking force to bear when it senses a panic stop. Electronic stability control, a system that can detect and correct an impending skid before it happens, will become available as an option later this year. It’s a feature we feel so strongly about that we’d consider waiting to buy a Caliber until we could get it. A tire-pressure monitoring system is also available as an option.