HONDA in many ways was better qualified than most to produce Japan's first true luxury car. And with the original Legend back in 1986, that's what it did. However, mainly because Honda lacked the marketing savvy of, say, Toyota/Lexus, the Legend never really lived up to its nameplate. The latest version, a 1998 facelift of the third-generation model launched in 1996, takes the Legend evolution to the stage where it is eminently worthy of consideration in the luxury market. Thoroughly refined in all areas, well fitted out and priced very competitively, the Legend today is what the first version should have been.