For decades Rolls-Royce was considered to make the best cars in the world, but that reputation started to slip in the 1980s and 1990s. Underinvestment and the use of outdated engineering began to take their toll in terms of build quality and reliability. In early 2003, however, the launch of the new Rolls-Royce Phantom sought to reestablish the marque to its rightful place.

With Rolls-Royce now under BMW ownership, the Phantom was assembled in a purpose-built facility in Goodwood, West Sussex, and employed modern design and engineering techniques. Gone was the venerable 6.75 litre V8 unit of previous Rolls-Royce models and in its place a new V12 unit boasting 453bhp. Under its aluminium and composite body was an all-new chassis with air suspension and electronic dampers, and packed beneath its leather and wood interior were state-of-the-art electronics systems.

But with a price tag of around £250,000 and concerns that BMW might fail to understand the unique nature of the Rolls-Royce brand, the Phantom was considered by some to be an enormous risk; one possibly that could mark the demise of the legendary brand’s status for ever.

Those fears were unfounded. Five years on and several thousand sales later the Phantom can claim to have recovered most of its past prestige.

That said, it is still not perfect. At just over 19ft long and almost 6ft 6in wide the Phantom is massive. It is seated on the largest alloy wheels of any standard production car (22.5in), which are shod with specially designed run-flat tyres. The huge wheels and a tall body give the Phantom an overall height of 5ft 4in, while the massive chrome grille, complete with electrically retractable Spirit of Ecstasy statuette, is offset by a cluster of narrow headlamps. To some it looks more comic book than real.

Despite the car’s huge bulk, however, it is still surprisingly nimble; bury the throttle into the sheepskin mats and the 2.5tonne Phantom will reach 60mph from rest in just 5.7sec, making it quicker than an automatic Porsche Boxster S. Not that the Phantom, with its rapid progress, ever feels like it is trying. Its six-speed automatic box allows you to slip smoothly between gears while the power reserve meter (nothing as crude as a rev counter here) informs the driver how much extra the engine still has to offer.

All in all, the Phantom is a surprisingly good drive, which is of no interest whatsoever to the many owners who delegate that job to a member of staff.

Rear-seat passengers enjoy a near-silent travelling environment and the electronically controlled air suspension remains supremely composed. On long journeys, the lack of lateral support in the standard rear bench-seat becomes apparent and those trying to work on laptops will find the folding seatback tables too low.

Rolls-Royce is quick to point out that the “bespoke” service for new-car buyers means owners can specify pretty much any seating configuration, but pick up a standard secondhand Phantom and you are likely to enjoy less rear-seat flexibility and control than in a Mercedes-Benz S-class costing around a third of the price.

It’s a similar story with boot space. Despite the car’s enormous length, the Phantom’s boot is smaller than that of a Ford Mondeo.

Such shortcomings are of little consequence, however, to those Phantom buyers who have a fleet of other cars at their disposal. What they will probably be more interested in is the fact that every car is trimmed with nearly 500 pieces of leather, sourced from 18 animal hides; that each of the 60 pieces of wood veneer is hand finished; and that the umbrellas, discreetly stored in each of the rear doors, are Teflon coated to ensure they do not rot when put away wet.

Since its launch the Rolls-Royce Phantom has found favour with owners that include Sir Alan Sugar, Simon Cowell and David Beckham. That said, Rolls-Royce doesn’t encourage celebrities to drive its cars. It’s a little too prim and discreet for that. And that’s a good thing.

Boot 460 litre boot is poor in view of the car’s overall length. No boot button means it can only be released from inside the car or via the key fob

Dashboard A deliberate lack of buttons keeps the layout simple and tasteful and there’s an art deco feel to the green lighting

Fuel economy Almost academic on a such a car costing so much, but owners report 12-16mpg in mixed motoring. The official figure is 18mpg

Gearbox Column-change six-speed automatic is particularly smooth

Heating and ventilation Chromed bull’s-eye vents reminiscent of previous Rolls models, but system can be difficult to adjust precisely

Rear doors Electrically powered rear “suicide” doors close at the touch of a button

Rear seat Standard bench seats lack lateral support, seatback tables are low and can catch taller passengers’ knees

Sat nav Hidden behind the centrally mounted analogue clock, it is operated by a BMW-type i-Drive rotary control and has no touchscreen

Servicing Intervals can stretch to 25,000 miles, and services can be very expensive

Stereo A standard Harman Kardon unit produces 420 watts and uses 15 speakers for great sound

Vital statistics

Model Rolls-Royce Phantom
Engine 6749cc, 12 cylinders
Power 453bhp
Transmission Six-speed automatic
Fuel 18mpg (combined cycle)
Acceleration 0-60mph: 5.7sec
Top speed 150mph
CO2 emissions 377g/km
Road tax band* F (£210 for 12 months)
Cost new today £265,500 *Cars registered after March 2006: band G (£400)

Values

Mileage
(10,000/20,000/40,000)

2003 03
Trade £120,100 £111,300 £100,300
Retail £142,750 £134,000 £123,000

2004 04
Trade £139,300 £129,000 £116,300
Retail £162,000 £151,750 £139,000

2005 05
Trade £160,100 £148,300 £133,700
Retail £182,750 £171,000 £156,500

The one to buy
A 2004 04 Rolls-Royce Phantom with 20,000 miles.
Pay £151,750 at a Rolls-Royce dealer or £142,500 privately

Or for similar money
2005 05 Maybach 57 5.5 litre
2006 55 Bentley Arnage RL
2006 56 Ferrari 612 Scaglietti
New Mercedes-Benz S 65 AMG Bi-Turbo
New Lamborghini Gallardo Superleggera