To discerning buyers who prize compactness as highly as comfort in a luxury sedan, you’re likely to consider in your hunt the 2025 Lexus IS and 2025 Mercedes-Benz C-Class, two perennial class favorites.
The current generation of the IS may be the more venerable of the two competitors, as Lexus refreshed it for 2021 after seven years, but Mercedes-Benz redesigned and upgraded the C-Class sedan for the 2022 model year. Neither is exactly a spring chicken; however, both are contemporary and loaded with high tech.
Let’s explore the highlights of the Mercedes-Benz C-Class and Lexus IS to see which compact luxury sedan appeals to you.
2025 Lexus IS
The 2025 Lexus IS range consists of the IS 300, IS 350, and IS 500. F Sport packages are available for each variant, which adds styling or performance tweaks based on the model buyers choose. The entry-level IS 300 runs on a turbocharged 2.0-liter 4-cylinder engine, 8-speed automatic, and rear-wheel drive (RWD). Pricing starts at $41,610.
Lexus IS Highlights
Classic styling: This is a matter of taste, but the IS will appeal to buyers who prefer feeling like they are driving a car rather than helming a console aboard the starship Enterprise. The exterior design continues to be sharp and is still the best it’s ever looked.
Engine variety: If buyers favor spending less at the dealership and gas station above all else, the 241-horsepower base unit in the IS 300 is a respectable choice. Adding all-wheel drive (AWD) to the IS 300 brings a 260-hp 3.5-liter V6. A 311-hp tune of this same V6 powers the IS 350. Like the IS 300, the IS 350 rides on rear- or all-wheel drive. The IS 500 packs a 5.0-liter V8 that sends 472 hp to the rear wheels and a little growl to the refined sedan’s exhaust. Oddly, unlike the C-Class, the IS has no hybrid powertrain—something for which Lexus is famous.
Resale value: Resale value is a Lexus calling card because Lexus holds its value better than most luxury brands, even the much coveted Mercedes-Benz. We suppose there’s something to be said for not being on the leading edge of technology—that, and quality craftsmanship and dependability.
Check this week’s Fair Purchase Price or see the IS models near you.
2025 Mercedes-Benz C-Class
2024 model shown
The 2025 Mercedes-Benz C-Class lineup begins with the C 300, weighing in with a starting price of $49,600. It employs a turbocharged 2.0-liter 4-cylinder engine with a 255-hp rating that falls between that of the two IS 300 models but thumps both with 295 lb-ft of torque. This mild-hybrid engine couples to a 9-speed automatic transmission that can also transfer power to the rear wheels only or all of them simultaneously. The 48-volt mild hybrid system can electrically deliver another 20 hp and 148 lb-ft of torque for quick bursts. Changes this year include an updated infotainment system and a center airbag between the front seats.
Mercedes-Benz C-Class Highlights
Hi-tech cockpit: The C-Class has arguably the most tech-forward cabins in the compact sedan segment. The automaker upgraded its MBUX (Mercedes-Benz User Experience) system, which now includes 5G wireless connectivity. The Routines feature enhances C 300’s personal assistant capabilities, enabling any of seven preprogrammed users to automate their habitual preferences. The MBUX is operated through an 11.9-inch vertical touchscreen positioned three-quarters up the center console. Behind the steering wheel is a 12.3-inch digital gauge cluster. A head-up display and MB Navigation featuring real-time traffic data are also available. You can also talk to the Hey Mercedes voice assistant in 27 languages.
Mercedes-AMG models: Not to be outdone by the Lexus IS 500 F Sport Performance, the AMG in-house tuner strikes with a 402-hp turbo version of the C-Class in the form of the C 43. Upping the ante again with the base engine, the AMG C 63 S E Performance model puts down 671 hp and 752 lb-ft of torque with a plug-in hybrid drivetrain and can take off from zero to 60 mph in 3.3 seconds. Both are equipped with all-wheel drive and a sport-tuned suspension as stock.
Biometric fingerprint scanner: Emphasizing the high tech of the C-Class, every trim level provides this cutting-edge access to the personalized-settings profile of each programmed user.
Check this week’s Fair Purchase Price or see the C-Class models near you.
Similarities
Until you get to the AMG C 63 model, pricing and performance numbers remain close between these two compact luxury sedans when comparing equivalent trim levels. Both offer opulent packages to elevate the experience, including premium sound systems for the most discriminating audiophiles. Every model of these two cars recommends premium octane, even the naturally aspirated V8-powered IS 500.
Pricing
New 2025 Lexus IS Prices
|
$41,610 |
$39,616 |
|||
|
$43,580 |
$40,607 |
|||
|
$44,935 |
$41,987 |
|||
|
$45,655 |
$43,185 |
|||
|
$47,010 |
$44,462 |
|||
|
$60,595 |
$58,546 |
|||
|
$65,095 |
$62,979 |
New 2025 Mercedes-Benz C-Class Prices
The Kelley Blue Book Fair Purchase Price for any individual used vehicle can vary greatly according to mileage, condition, location, and other factors.
The prices here reflect what buyers are currently paying for New 2025 Lexus IS vehicles and New 2025 Mercedes-Benz C-Class vehicles in typical condition when purchasing from a dealership.
These prices are updated weekly. The manufacturer’s suggested retail price (MSRP) quoted includes the destination fee, but does not include tax, license, document fees, and options.
Specifications
| 2025 Lexus IS | 2025 Mercedes-Benz C-Class | |
| Popular Powertrains | ||
| Engine | Turbocharged 2.0-liter 4-cylinder | Turbocharged 2.0-liter 4-cylinder |
| Horsepower | 241 hp @ 5,200 rpm | 255 hp @ 5,800 rpm |
| Torque | 258 lb-ft @ 1,650-4,400 rpm | 295 lb-ft @ 2,000-3,200 rpm |
| Transmission | 8-speed automatic | 9-speed automatic |
| Fuel economy MPG | 21 city/31 highway/25 combined | 25 city/35 highway/29 combined |
| Also Available | 3.5-liter V6, 5.0-liter V8; AWD | Turbo gas-electric 2.0-liter 4-cyl.; AWD |
| Specs | ||
| Basic Warranty | 4 years/50,000 miles | 4 years/50,000 miles |
| Powertrain Warranty | 6 years/70,000 miles | 4 years/50,000 miles |
| NHTSA Overall Safety Rating | 5-Star | 5-Star |
| Max Seating Capacity | 5 | 5 |
| Wheelbase | 110.2 inches | 112.8 inches |
| Overall Length | 185.4 inches | 187.0 inches |
| Width | 72.4 inches | 74.4 inches |
| Height | 56.5 inches | 56.6 inches |
| Turning Diameter | 34.2 feet | 37.6 feet |
| Headroom, Front | 38.2 inches | 40.0 inches |
| Headroom, Rear | 36.9 inches | 37.5 inches |
| Legroom, Front | 44.8 inches | 41.7 inches |
| Legroom, Rear | 32.2 inches | 36.6 inches |
| Shoulder Room, Front | 55.9 inches | 56.3 inches |
| Shoulder Room, Rear | 53.4 inches | 55.6 inches |
| Cargo Volume | 10.8 cubic feet | 11.6 cubic feet |
Conclusion
The 2025 Lexus IS and 2025 Mercedes-Benz C-Class are fine examples of the compact luxury car segment but offer different experiences. The C-Class is more modern in every respect, from the way it derives its power and performance to its sheer embrace of cutting-edge tech in the cabin. Also refined but in a classic sense, the IS rekindles a nostalgic driving experience that isn’t overwhelmed with screens and flashy gizmos vying for your attention. However, as astounding as the Mercedes-Benz can be, that feeling comes at a much heftier price than the Lexus. Moreover, the IS retains its value better. Consequently, buyers who are less enamored with the latest and greatest of everything might view the Lexus IS as the better investment. Ultimately, it’s really about your budget and whichever experience you prefer, but test-drive both for the joy each brings.