In recent years, the compact luxury sedan segment has witnessed a decline in sales as SUVs become ever more popular. However, that doesn’t mean that luxury brands aren’t keen on maintaining their hold on what remains of the market with new innovative four-door offerings.
Arguably two of the most compelling choices if you’re looking for a luxury sedan, the Lexus IS and the Mercedes-Benz C300 promise a luxurious interior, a comfortable drive, and sophisticated in-cabin tech. But how do they stack against each other in 2025?
Pricing and Cost of Ownership
The 2025 Lexus IS starts at a base MSRP of $41,360 and increases in price with each grade as you add more features. The apex model, the IS 500 F Sport Performance Premium, starts at an MSRP of $64,845, which is pretty affordable considering the numerous comfort features, powerful engine, and advanced tech features it offers. The 2025 Mercedes-Benz C300 starts at an MSRP of $48,450 for the base model, with each successive trim adding more features for a higher price tag.
While the base 2025 Mercedes-Benz C300 is more expensive upfront than the 2025 Lexus IS, it packs numerous luxury features that justify the price tag. It also comes with a standard four-year or 50,000-mile limited warranty and two-year or 40,000 km wear and tear coverage.
The 2025 Lexus IS offers numerous interior comfort features at an affordable price point, making it a great option if you’re seeking a reliable luxury sedan on a budget. In addition to a four-year or 50,000-mile limited warranty, the new Lexus IS comes with complimentary maintenance.
Performance Comparison
For the 2025 model year, the Lexus IS offers three powerful engine options. The base powerplant is a 2.0-liter turbocharged inline-four, generating 241 horsepower and 258 lb-ft of torque. This engine, standard on the IS 300, IS 300 F Sport Design, and IS 300 F Sport, pairs with an eight-speed transmission system with paddle shifters. Meanwhile, all-wheel-drive (AWD) variants of these models come equipped with a more powerful 3.5-liter V-6 that cranks out a maximum of 260 horsepower and 236 lb-ft of torque. This engine pairs with a six-speed paddle shift transmission system.
A tuned-up version of the V-6 engine comes standard on both rear-wheel-drive and AWD variants of the IS 350 F Sport Design and the IS 350 F Sport. This powerplant, which mates with an eight-speed transmission for rear-wheel drive models and a six-speed transmission on AWD models, produces a remarkable 311 horsepower and 280 lb-ft of torque.
The top two trims in the 2025 Lexus IS lineup, the IS 500 F Sport Performance and the IS 500 F Sport Performance Premium, run on a 5.0-liter V-8 engine with a maximum output of 472 horsepower and 395 lb-ft of torque. This powerful engine pairs with an eight-speed transmission and a rear-wheel drivetrain on both models.
During our test-drive of the IS 300 AWD, we discovered impressive acceleration scores, with the model making 0 to 60 mph in just 6.1 seconds. As for fuel economy, models equipped with the turbocharged inline-four offer the best, with estimated EPA ratings of 21 mpg city, 31 mpg highway, and 25 mpg combined.
All 2025 Mercedes-Benz C300 models run on a turbocharged 2.0-liter four-cylinder engine, generating 255 horsepower and 295 lb-ft of torque. This powerplant mates to a nine-speed automatic transmission and is bolstered by a 48-volt hybrid system that delivers an additional 20 horsepower.
The C300 4MATIC achieved 0 to 60 mph in just 6.0 seconds in our test-drives, which is hard to beat in this class. The model also registers fairly good fuel economy ratings, with rear-wheel variants getting 25 mpg city and 36 mpg highway.
Interior Quality and Features
The 2025 Lexus IS and the Mercedes-Benz C300 offer upscale interiors with premium appointments and a wealth of convenience features. Standard interior features across the Lexus IS lineup include an illuminated entry system, a dual-zone climate control system, and a power driver seat. Higher grades offer extra comfort amenities, including a heated leather-trimmed steering wheel, four-way power adjustable headrests, and heated and ventilated front seats.
Entertainment and connectivity are also prioritized on the new Lexus IS, thanks to the advanced Lexus Multimedia System. An 8-inch touch screen comes standard, although you can upgrade to a larger 10.3-inch display. Other noteworthy standard and optional technologies on the model include a Wi-Fi hot spot, Bluetooth connectivity, Android Auto compatibility, Apple Car Play integration, and a 17-speaker Mark Levinson premium sound system.
The new Mercedes C300 offers a luxurious cabin with numerous premium features and tech to elevate the cabin experience. Standard luxury features include THERMATIC dual-zone automatic climate control, heated front seats with memory settings, a heated steering wheel, and an illuminated entry system. There are also plenty of optional features that you can add for extra style and comfort, including climate comfort front seats, heated rear seats, nappa leather upholstery, and enhanced ambient lighting.
Every Mercedes-Benz C300 has an 11.9-inch center display that runs the third-generation Mercedes-Benz User Experience system. Other standard connectivity and entertainment tech on all models include a 12.3-inch digital instrument cluster, biometric authentication, wireless Apple CarPlay and Android Auto integration, and Bluetooth audio streaming. Mercedes-Benz also offers plenty of optional tech on this model, including a head-up display, TuneIn Radio, and a Burmester 3D surround sound system.
Technology and Innovation
The new Lexus IS offers an array of innovative advanced driver-assistance systems to enhance your confidence when driving. Standard safety technologies present in the Lexus Safety System+ 2.5 include a precollision system with pedestrian detection, automatic high beams, dynamic radar cruise control, lane tracing assist, a lane departure alert system with steering assist, and road sign assist.
The 2025 Mercedes-Benz C300, in contrast, offers little in the way of standard advanced driver-assistance technologies. The only notable active driver-assist features are active brake assist, attention assist, blind-spot assist, adaptive high beam assist, and active parking assist. Most key driver-assistance systems are optional features, including active lane-keeping assist, active emergency stop assist, traffic sign assist, and evasive steering assist.
Experience Ultimate Luxury With the 2025 Lexus IS at Longo Lexus
If you’re unsure which of the two is the better luxury sedan for you, taking each model for a spin can help you make up your mind.
We invite you to book a free test-drive of the new Lexus IS at Longo Lexus in El Monte, California. Our friendly and knowledgeable staff will be happy to answer all your questions and help you find the perfect trim and the best deal.
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