Lexus LC500H vs Mercedes-Benz E-Class

What's the difference?

A truly fuel-efficient performance car, who’d have thought? There are some obvious trade-offs for trying to exist in two seperate worlds, but the Lexus LC 500h largely handles its dual roles with aplomb.

It's nice to see the E-Class still embody the ancestral heritage of Mercedes-Benz, a brand which has had much change forced upon it in the last decade.

This hybrid one in particular does a remarkable job of blending the future and the past in one deeply capable and customisable package, but not one without its flaws.

While the E 300 e manages to unite these elements nicely, it's ultimately held back by its classic rear-drive underpinnings which have consequences for packaging and electric range.

It's a little curious, the LC 500h. For mine, it's stunning from a distance. All gleaming alloys and bulging rear arches and sharp snout angled downward like its caught the scent of its prey.

But weirdly, it can start to look a little less impressive the closer you get to it - a little swollen and vague in its lines. It's very likely it's eye-of-the-beholder stuff (fellow CarsGuide scribe Richard Berry adores it from every angle, for example).

Inside, the front of the cabin is a busy but stylish space, with multiple textures layered on top of each other to produce a premium-feeling, sporty space. The low-feeling dash juts out, giving the front passengers an ensconced, cockpit feel.

Everything is predictably leather-wrapped and lovely, and while it's not as streamlined as, say, an Audi interior, it's not without a genuine sense of Japanese charm in the cabin.

The E-Class recently received a significant facelift to bring it in line with the brand's latest design ethos, and it serves to refine an already elegant sedan.

The E-Class isn't just the brand's definition by reputation, but by its look, too. While some may be disappointed by how similar it now looks to the C-Class below, or the S-Class above, giving the core Mercedes sedan range near identical silhouettes, it cuts a unique path from its traditional rivals.

BMW's 5 Series leans into a sharper and more aggressive design language, while Audi's A6 does much the same with a post-modernist edge.

I'd argue the stoic Germanic stare of the E-Class’ softer face places the Mercedes exactly where it needs to be, but it doesn't stray from its sporty rear-drive underpinnings entirely.

The car's new blacked-out highlights accentuate its width, and the 10-spoke alloys on our test car fill the wheelarches and draw your eye to the car's low stance and big brakes.

A classic Benz beltline runs from the front lights to the rear, uniting a tidy and clearly well-built package.

Inside and the more luxury-focused touch of the E-Class compared to rivals is evident. Lavish wood trims work their way through the doors and across the grandiose dash, and while the flashy screen fittings from the wider Benz range are present here, the interior is toned down several notches from the glitz of the brand's smaller vehicles.

This offers it a much more stately ambiance, matched by the synthetic leather ‘Artico’ seats which are more like lounge chairs you sink into.

The overall design links the E-Class with its siblings nicely, and there are a lot of the brand's re-imagined classic touches present, like the circular climate vents, wooden panel inserts, and silver-tinged toggles which run down the centre.

It's not all retro, though, with the E-Class wowing observers with its giant single gloss panel hosting the multimedia suite and digital dash elements.

Obviously, you can go further here, with a long list of optional interior colour and trim combinations to customise the E-Class to your heart's content, although I was happy with the classic black on brown woodgrain of our test car.

It's not really. Especially in the backseats, which would make more sense if they were painted on. I'm no giant, but even my 175cm-tall head was pushed into the ceiling, and while there’s ample shoulder space for two adults, you’re unlikely to be able to convince two to get back there. 

Lexus has included something called the "Easy Access" function for 2020, which sees the front seats slide forward automatically to help with accessing the rear seats, and they do lower the Cirque du Soleil antics required to get back there, but this realistically not a car for carrying more than two adults, save an emergency. There are two ISOFIX attachment points in the rear, so child seats can be locked in there. 

That's not necessarily a drawback, though. This is a two-door sporty coupe, after all, and elsewhere, the sizeable dimensions (4770mm length x 1920mm width x 1345mm height) provide plenty of space for up-front riders.

You'll also find hidden cupholders, bottle holders in the doors, and all the power and connection points you need. 

A word on the tech, though. The LC 500h is crying out for a touch screen, though the brand's traditional mousepad system is improving.

The E-Class takes many forms around the world, and one of them is a taxicab which makes a lot of sense because the E-Class is one of the few cars I've had on test of late that I'd actually like to be driven around in rather than always take the helm myself.

The rear seat space is enormous behind my own driving position, and the detailed luxurious trims continue, complete with the dazzling milled silver speaker fittings, woodgrain trim, and in our test car, rear heated seats.

Again, the seats are ones you simply sink into, and the window is nice and wide for great visibility.

Alongside rear heated seats in our car, amenities include large bottle holders in the doors, flip-out ones in the armrest, hard shell pockets on the back of the front seats, as well as dual adjustable air vents with a lock-off.

The front seats also offer generous space, comfortable and supportive designs, and a lavish space for full-sized adults with a high level of adjustability.

As much as I hate the fact that you have to tick pricey option boxes on an already pricey car, the amenities they afford are properly luxurious.

The seat heating, for example, extends to the armrests in the doors and centre console, and the third climate zone is a necessary touch if you're ferrying around rear passengers often.

While a sedan like this is never going to have the ease of seating of an SUV, there are lots of little areas where this Benz shines.

Proper four-door keyless entry is a nice touch. As is the ability to pre-condition the cabin, the way the doors open nice and wide, and the 40/20/40 split fold of the rear seats allow you to use the centre fold as a ski-port in European style.

Up front, you can customise the digital dash how you see fit, and while the touch panel controls on the wheel and centre console can be clumsy at times, at least there are multiple ways to interact with the system, and a physical dial for volume control hasn't been forgotten.

Over time I've even warmed to the centrally-located touchpad controller. It's easier to use than the one in Lexus products, and it's nice that I have a way to interact with the piano-gloss screen without needing to reach over to it while I'm concentrating on the road (leaving finger prints all over it in the process).

Even things as simple as the car's instruction manual being entirely digitized into the multimedia suite, complete with search function, is just smart.

The layout of the E-Class creates a significant reduction in boot space in this hybrid version, however.

Because it's a rear-drive sedan, it requires the batteries to be awkwardly packaged under the floor and on top of the axle, so the boot floor is an odd, tiered surface, with space reduced from a decent sedan-sized 540 litres (VDA) in purely petrol variants to a hatchback-sized 370L in this PHEV.

As you might be able to tell from the pictures, this shelf arrangement makes the space hard to use, although it did manage to fit our largest (124L) CarsGuide travel case on an angle.

The Mercedes-Benz E-Class has a complicated range, consisting of multiple bodystyles as well as performance options, but the E 300 e is the only hybrid.

It is the electrified version of what would normally be the mid-grade sedan, and it wears a starting price, before on-road cost (MSRP) of $122,872.

Sitting below is the E 200 (from $98,576) and above is the E 350 (from $127,100) which replaces the old petrol-only E 300.

Importantly, Mercedes ups the value equation by adding the ‘Air Body Control’ suspension package from the E 350 as opposed to the regular multi-link suspension on the E 200.

The other thing which might surprise you if you haven't looked at the E-Class in a while, is only AMG-branded variants now have more than four cylinders, with the rest of the range sharing a version of the brand's 2.0-litre turbo-petrol engine.

Read more about that in the engine and transmission part of this review, but the value equation is a surprise given the E 300 e packs a 90kW electric motor and a 13.5kWh battery on top of air suspension.

In the scheme of luxury sedans, this gives the E 300 e its niche, still coming in nearly $5000 below the E 350 (which offers a more powerful petrol engine, seat trim with a percentage of real leather, and larger alloy wheels), while being faster and more complex.

Looking at the standard equipment on this mid-grade it's clear there's no taxi-spec E-Class in Australia, and you'd hope so with this car costing well over $100,000.

Included is the impressive ‘MBUX’ array of dual 12.3-inch screens, one for the digital dash, one for the multimedia functions (which include built-in nav, digital radio, as well as Android Auto and Apple CarPlay connectivity), leather interior trim (at least, seats which are some percentage real leather, according to Benz), fully electrical adjust for the front seats, and an LED interior ambient lighting package (with a choice of 64 colours).

Also on-board are a wireless phone charging bay, 19-inch alloy wheels (the 300 e has a different design to the base 200), dual-zone climate control, fully keyless entry with push-start ignition, an auto parking system and 360-degree surround cameras, and the full active safety suite, which we'll look at later.

An AMG exterior styling pack is standard in Australia, and our test car had pretty much every option ticked, including the ‘Vision Package’ ($6600) which includes a panoramic sunroof, head-up display and premium 590W audio system, the ‘Innovation Package’ ($1300) which includes a more powerful version of the MBUX suite with gesture controls and extended voice control functionality, and the ‘Energizing Package Plus’ ($9500) which includes improved air filtration to the cabin, heated and cooled front seats with heated rear seats, and tri-zone climate (including a separate climate zone for rear occupants).

This brings the total cost for our car to ($140,900) and that doesn't even include the Type 2 to Type 2 charging cable ($565.16) which you'll probably want for the convenience of topping up your charge levels whenever you stop at the shops (more on this later).

If it were my Benz I'd probably leave off the ‘Innovation Package’ and ‘Vision Package’, although the pricey ‘Energizing Package Plus’ adds compelling upgrades.

It's worth noting when it comes to rivals the Audi A6 range tops out at a suddenly-cheap-sounding $116,177, although there's currently no PHEV variant in Australia, while the BMW 530e PHEV comes in at a closer-to-the-mark $122,900 before you start ticking option boxes.

The LC 500h is powered by a hybrid setup that combines a 3.5-litre V6 engine with a 650-volt "Lexus Hybrid Drive" system and a lithium-ion battery. That setup delivers 264kW of power, and somewhere north of 350Nm in torque when the engine and motor outputs combine.

That power is sent to the rear wheels via a CVT automatic, and will produce a sprint to 100km/h of around 5.0 seconds. 

According to Lexus, 10 clear improvements were made the way the 2020 LC 500h drives, including a new transmission tune, more structural bracing added for rigidity, new suspension components and spring rates, and altered stabiliser bars. 

Has it made a difference? Read on. 

The E 300 e has a 2.0-litre turbocharged four-cylinder petrol engine producing 155kW/350Nm mated to a nine-speed torque converter automatic transmission, driving the rear wheels.

The transmission contains an electric motor which is capable of producing 90kW/440Nm on its own, allowing full range of motion in the ‘Electric’ driving mode.

It is also capable of hybrid assistance to the petrol motor, making the E 300 e the fastest non-AMG-badged E-Class model to 100km/h, with a claimed sprint time of just 5.7 seconds.

It also has a 13.5kWh lithium-ion battery pack, which is good for a claimed electric-only driving range of 51km (on the more lenient NEDC testing cycle).

It's a complex mix of gear, and the electric range I experienced was certainly less than 40km. In other words, it's used up very quickly.

The Benz offers some interesting driving modes to help with this, which we'll explore later in this review.

Lexus says the LC 500h will sip 6.8 litres per hundred kilometres on the combined cycle - very impressive for what is ostensibly a performance coupe - and emit 152g/km. 

The LC 500h is equipped with an 82-litre fuel tank. 

All of this hybrid gear leads to impressive consumption figures. Officially the E 300 e will consume just 2.2L/100km on the combined driving cycle, with around 13.0kWh/100km of energy consumption worked in as part of that calculation.

However, the hybrid Benz requires 98 RON premium fuel, has a smaller tank (60L) than its all-combustion counterparts, and its claimed 51km of NEDC range is more in the late thirties or early forties in the real-world in my experience.

That said, our car consumed a blend of 5.6L/100km and 8.3kWh/100km in my time with it, which is a nice balance of fuel and energy consumption.

I drove it with a lot of electric mode in the mix, but also had a day solely on the engine, and some experimenting with 'Sport' mode and 'Battery Saver' which is designed to maintain the battery level whilst using hybrid mode where it can.

The E300 e accepts a European-standard Type 2 ‘Mennekes’ charging cable in AC form only. It can charge at a theoretical max speed of 7.4kW, although the max I extracted from my local solar-charged AC outlet was 7.2kW.

It took around an hour and a half to get my E 300 e to about two-thirds charge. It would have charged to 100 per cent in around two hours using this method.

Expect somewhere between four and five hours for it to charge to 80 per cent from a 2.4kW wall socket with the included charger.

The system as a whole works well, but I wish it had more purely electric range. A battery closer to 20kWh would offer 60 or 70km of real-world range for a car of this weight, but would eat significantly more boot capacity.

There’s something very strange about hitting the start button in what is ostensibly a sports car, and being greeted not by the bark of an exhaust, but by the gentle whirring on the car’s electronics coming to life.

But then, the Lexus LC500h is not your average performance car.

It essentially trades the out-and-out grunt of its V8-powered sibling (which produces a monstrous 351kW and 540Nm) for a kind of best-of-both-worlds approach that pairs the punch of the V6 engine with the fuel efficiency of a hybrid powertrain. 

If that sounds like an compromised approach to pure performance, you're right. But reframe the way you look at the LC 500h and it all starts to make a bit more sense.

Remember, this isn't a track-attack weapon, but a potent on-road bruiser, and the flow of power on offer always feels ample, and you never want for too much more off-the-line pace on public roads. 

Among the biggest selling points of the LC 500h is the sheer distance between its various personalities. Engage Eco, or even Normal, drive modes, and it’s a quiet, mostly very comfortable (though it can be unsettled by bigger bumps) kilometre-eater, but engage Sport or Sport Plus and it rightly transforms into something significantly angrier.

It might not be the absolute sharpest tool in the performance car shed, but the LC 500h does bristle nicely when those modes are engaged, the hybrid factor seemingly replaced by a satisfyingly meaty exhaust note and an accelerator that’s suddenly far more sensitive to the touch.

The steering feel is nice and the inputs direct, but there is something about the car’s 1980kg weight that doesn’t inspire the deepest of confidence, at least not on the rain-slicked roads we were travelling along .

A pure performance coupe? Perhaps not. But a sporty, stylish and, when you want it to be, comfortable cruiser with the ability to turn the volume up when you come across a twisting road? Bingo.

For all the electrification and evolution in Mercedes-Benz’ greater range, it's almost like coming home to sit in the E-Class.

Not only does the E 300 e stay true to the brand's luxury sedan roots with the comfort and refinement on offer, but it's perhaps the one variant in the E-Class range that makes a significant stride toward the future of the nameplate.

I'm sure we'll see a fully electric version of the E-Class in the near future (the brand is shifting to electric-only with an aggressive timeline), but for now, at this price, hybrid is the way forward for luxury sedan refinement.

The way this car blends its electric and combustion modes is notably smooth, and the engine is so distant it's genuinely hard to tell when it turns on, unlike this car's smaller A 250 e PHEV hatch sibling which takes a major drop in refinement when the rattly 1.3-litre four-cylinder engine needs to be relied upon.

This is likely due to the higher-end nature of the 2.0-litre engine and nine speed longitudinally mounted transmission in a much larger and heavier car. One thing I've never liked about the Mercedes PHEVs (and is a common problem among many PHEVs) is the ‘hybrid’ mode could be a bit smoother and more transparent on how it divides its time between electric and with the engine on. At times it runs the engine at the lights for no reason, and it seems unusually keen to turn it on when it could be using electric power. Perhaps we are spoiled by the simplicity and twenty years of refinement of Toyota's Hybrid Synergy drive, but it has the affect of making you wish every hybrid was as good.

The default ‘Comfort’ mode, while the most forgiving in terms of this car's ride, is weighted toward entirely draining the battery before it uses combustion power. The extra drive modes and customisation this PHEV offers are very useful though. Battery Saver mode lets you rely predominantly on combustion power. It's better to use on the freeway where combustion power is at its most efficient, allowing you to switch back to Comfort or Electric when you're stuck in traffic.

Sport hunkers the E-Class down for a sportier and firmer experience, and it also tweaks the accelerator response and auto transmission for a far more aggressive driving tune. As this mode won't use the electric motor at all, even at low speeds, it can be handy to use it to charge the battery via regenerative braking for times when you might not have access to a charger.

In fully electric mode, the regen braking can be tweaked to the max using the paddle shifters to increase your electric efficiency and range.

Like the smaller A 250 e, it's a highly customisable experience, letting you experience as much or as little electrification as you want in the moment, although in this case it's let down a little by the limited battery capacity.

Still, the E 300 e is an E-Class, quieter and sleeker than before. The ride is as stately as the interior suggests, and even on those 19-inch wheels little noise or discomfort makes its way into the plush cabin. The transmission is as close to an old ‘slush-o-matic’ you can get, and I mean that in a good way. Unless you're in one of the Sport modes, it will never interfere with the experience from behind the wheel.

Once you do awaken it in Sport or Sport + though, it shifts, even via paddles, with a surprising urgency, and it's in those modes where the air suspension transforms the cosy barge-like ride from Comfort or Electric into something far more rigid and responsive.

The dynamic breadth of ability in this car is a reminder of what premium money like this can buy. On the one hand you have the luxury of an economical comfort saloon, and on the other you have at least an inkling of semi-electrified performance at the flick of a switch.

Just remember to plug it in when you get home, or you're lugging around a lot of battery for no good reason.

Mercedes’ impressive safety equipment is all present here in the E-Class. Active tech includes freeway-speed auto emergency braking with pedestrian and cyclist detection, lane-keep assist with lane departure warning, blind-spot monitoring with rear cross-traffic alert, traffic sign assist, and adaptive cruise control with stop and go function.

The E 300 e grade also scores the higher spec ‘Multibeam’ LED light clusters, which have auto high-beams capable of dipping around oncoming traffic without turning down completely.

It's an impressive suite backed by other Germanic upgrades like pre-crash cabin conditioning and seven airbags alongside the regular suite of electronic traction, brake, and stability controls.

The E-Class officially wears a maximum five-star ANCAP safety rating it carries across from the pre-facelift model in 2016, however this notably doesn't apply to MHEV or PHEV variants, which remain un-tested.

Some things worth noting in particular about this system: The full Mercedes adaptive cruise suite is one of the most impressive on the market, with its active steering and distance control being the closest to Tesla's ‘autonomous’ driving modes you can get.

Also, our car committed to a full AEB stop in the middle of a deserted suburban street in the middle of the night. There weren't even any parked cars nearby. Puzzling, but a reminder that these technologies aren't bulletproof.

So, to ownership. Let's start with the basics first, before we move onto the new Encore Platinum benefits. 

The LC 500h is covered by a four-year/100,000km warranty, and servicing (capped for three years at $595 a pop) is required every 15,000km.

You will know already the Lexus's stellar Encore ownership program includes handy features like valet (pick-up and drop-off) servicing, but the new Encore Platinum level for owners of its more exclusive models unlocks some seriously cool stuff. 

One is a new On Demand service, which allows owners to book a different style of car when heading off on a holiday or business trip. So, say you own the LC 500h, but want to take the family to the snow and need a seven-seat 4WD like the RX L, then Lexus will lend you one at no charge, which you can keep for eight days.

The loans are available in your state or somewhere else in Australia if you're travelling, with your car waiting for you at Qantas Valet for you when you arrive. 

The One Demand service is available on four occasions over your first three years of ownership (which is also the length of the Encore Platinum membership). 

The Platinum level also provides eight examples of free valet parking at select shopping centres, as well as hotel and restaurant benefits, and invitations to Lexus' drive days around the country.

Mercedes covers all its passenger cars with a five year and unlimited kilometre warranty, beating out its primary Audi and BMW rivals which persist with three-year offerings, and generally out-performing the premium segment.

The E-Class needs to be looked at once every 12 months or 25,000km, whichever occurs first, and like many German automakers, service packages can be bundled in at the time of purchase to bring overall costs down.

In the case of the E-Class, this will set you back $2450 for three years, $3200 for four years, or $4800 for five years, at a claimed minimum saving (three years) of $550 compared to paying-as-you go.

It's not as expensive or as unknown as it used to be here, but at close to $1000 per year, even when purchasing via the pre-paid packs, it's still very much at the premium end.