Lexus LS500 vs Mercedes-Benz E300

What's the difference?

The LS500 is the least logical version of the most logical option in the ultimate luxury sedan segment in which logic doesn’t often apply at all. 

Take from that what you will, but if it was me being driven around I would definitely be opting for the hybrid version of the LS instead for its smooth electrified driving characteristics and lower operating costs.

The E-Class is stacked with kit, looks great, and is an effective and comfortable way to get around in built-up areas or across the countryside.

While it’s not the most dynamically engaging - it’s pipped by its Bavarian rival there - it offers more comfort-oriented features than most, and the cabin is a pleasant place to spend a day driving.

If you're disposed towards stumping up the asking price, the extra outlay for the 'Plus Package' will probably be most relevant to you if you’re covering long distances due to the Airmatic suspension.

Otherwise, even a simple-spec E300 provides a step up from what you might expect from an executive sedan.

Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.

The distinctive but conservative style of Lexus is on full show across the LS’s massive frame. Like other cars in its class, it’s very much the image of the brand itself with styling points strong, but to me not as impressive as the LC500, which is a definitive expression of the brand.

The LS also has many styling points of the previous-generation Lexus design language which are in the process of being phased out.

The car was only updated last year, bringing with it a more recent interpretation of the brand’s big spindle grille, pointy headlight profile, and angular but traditional rear.

The LS - even in this Sports Luxury guise - does look quite menacing from certain angles. The width and stance of this car is accentuated by its curvaceous rear guards and big square front bumper, with the elegance of a classic three-box sedan maintained in a side profile.

The chrome wheel finish is a bit much for my taste, but there’s no doubt they’re real show pieces. They’d better be, too, because I hear they are incredibly expensive should you need to replace one.

The inside has highs and lows but it’s the place where you can most tell the LS has been on sale for a while.

I love the plush seats, big screen, integrated analogue clock and three-dimensional door card design, which sell the flagship luxury feel.

But this car’s age is on show with its clunky and much maligned 'Remote Touch' pad controller (which Lexus is at long last phasing out in its new cars), last-generation software suite, and its small, crowded instrument cluster.

There are a whopping nine interior trim combinations to choose from and ours has the most recently added black leather and ‘Nishijin Haku’ themed highlights which are meant to be inspired by the way "moonlight sits on an open sea".

The feel is a bit '90s, a rough textured fabric with a silver detailing and elements clad in a thin platinum foil, making you feel like you’re in a classic high-class Japanese taxi.

But I’ll admit it plays well with the ambient lighting effect in the doors, and is a unique selling point compared to the standard leather finish.

Evolution rather than revolution is obvious when it comes to the E-Class’ styling, but that’s in Mercedes’ best interests, because it’s still a good-looking thing, and being a bit subtle is warranted in the executive sedan game.

The biggest changes come in the headlights and tail-lights. Up-front there are now more than one million pixels in the LED headlights, which have adaptive high beam as standard and are more connected to the grille via black trim, as has been seen in EQ electric models.

Underneath, the bumper now features an AMG-style 'A-wing' apron as part of the 'AMG Line' exterior package as standard. A set of 20-inch AMG alloys are also included.

To the rear, and the digital tail-lights feature a Mercedes-Benz star motif, making its lighting signature now more recognisable from behind.

The German Rainbow is well-represented with mostly shades of grey, black, or white available, though 'Verde Silver Metallic' is a slightly retro green, and 'Nautic Blue Metallic' is a subtle and classy tone.

The daring ‘Manufaktur’ shade of 'Patagonia Red Metallic' is a $2500 option, as is 'Opalite White Bright' while 'Alpine Grey Solid' is $2900.

For passengers, as you’d expect, the LS is stellar. The massive outboard rear seats offer plenty of room, and are complete with reclining, message, and cooling functions.

Adjustable vents feature, with quad-zone climate, and the screens come with individual headphone jacks and HDMI-in so you can bring with you all sorts of entertainment options for those longer journeys.

Other suitable additions worth noting include the wine cooler (although it’s a bit small for anything other than minibar-sized beverages, hardly the 007 trope of rolling out a full-size bottle of Bollinger), flip-down mirror with a light in the roof, and the touch panel controls in the armrest. I also appreciate the built-in sunshades. Nice touch.

Less impressive is the general vibe of the middle seat. With a large raised centre split in the floor and such wide and lavish outboard seats, the middle seat feels a bit forgotten.

Up front, the practicality offering includes a high level of adjustability for the seats to suit a wide range of driving positions, electrical adjust even for the steering column, and a nice wide seat which you simply sink into.

Of course, soft finishes adorn even unseen parts of the cabin so you’ll never touch a nasty hard plastic, and there are large storage areas in both the doors and centre console box.

This big armrest console also hides the USB connectivity within, and there’s a set of big cup holders with a flip-away lid if you want the wood grain design uninterrupted when they are not in use.

I have to mention the useless touchpad controller here, but hand the brand props for offering a collection of climate shortcut buttons on the dash, an actual volume knob, and truth be told you don’t need the touchpad anyway because the screen is touch. Just be ready for the matching last-generation software, which isn’t the best to use or navigate.

The boot has a volume of 440 litres which sounds plentiful, but the actual use of it is a reminder of one of the reasons SUVs are so popular.

Yes, it’s big and reasonably deep, but putting the largest CarsGuide case in there proved a bit clumsy as you have to lift it over the tall rear bumper and it only just clears the top of the relatively small opening.

I love sedans, but this is one area where you can see the benefit of a hatch opening, particularly if you were frequently doing the airport run.

Inside, the E-Class should feel familiar to anyone who’s spent time in a recent Benz, though the Superscreen might be the main point of difference. It’s an immediately comfortable place, though, with a relatively visually busy cabin.

The seats and their adjustability mean most drivers and passengers, regardless of height and size, should feel supported (and ideally relaxed), while touch-points are mostly either leather upholstery or digital screens.

The steering wheel, also seen in plenty of other Mercedes models, is a bit of a let-down, however, with its haptic touch pads on a slightly busy two-tier layout. This millennial found it irritating, surely too will the usually older E-Class buyer.

There are a few other small annoyances, one being that the MBUX Assistant sometimes won’t hear a command, or that not everything seems to be able to be controlled by it. The climate control vent positions are electrically adjustable to certain pre-sets through the menu, but the MBUX Assistant isn’t able to do this for you.

And while the driver display and central multimedia screen are fairly user-friendly, it’s not always immediately apparent what the quickest way to find some information or a setting is.

Our test car was fitted with the 'Plus Package', which means four-zone climate control available to the rear seats, which my 180cm-tall self found spacious with plenty of headroom, kneeroom, and even a fair bit of room under the driver’s seat.

Behind the rear seats, there’s a generous 540 litres of boot space, exactly the same capacity as the previous generation E-Class.

While cross-shopping the E-Class and a BMW 5 Series would normally be relatively easy, the Merc’s $131,500 starting price, before on-road costs, puts it plenty north of the base 520i, the only petrol one available, at $114,900. The electric i5 eDrive40 starts from $155,900, more than $20K over the Mercedes.

But the E-Class is stacked with features as standard, and while there are a couple of option packs, Mercedes Australia has tried to streamline the most popular features and specifications into the E300.

Its $131,500 price gets you a tech-heavy sedan with Merc’s latest 'MBUX' system housed in a visually impressive, if perhaps unnecessary, 'Superscreen' dash.

The dual-screen set-up incorporates a main 14.4-inch central multimedia touchscreen and a 12.3-inch display for the passenger, allowing the driver to keep, for example, a map visible while a passenger sorts out media or comfort settings.

The system is also designed to avoid taking users through sub-menus, though can be bypassed by wireless Android Auto or Apple CarPlay.

It also features a selfie camera mounted to the dash, which is disabled for the Australian market at present. Mercedes-Benz Australia hopes to change this soon.

Mercedes also plans to allow the MBUX system to learn what settings and functions will be most useful to the driver under certain conditions, but currently users are able to manually create so-called ‘Routines’ such as setting the climate control and seats to warm up if it’s below a certain temperature, and can even adjust the ambient lighting to a warmer colour.

More automation comes in the brand’s MBUX ‘Hey Mercedes’ system, which can now respond to commands without the driver needing to say “Hey Mercedes”. 

Heated and vented front seats, leather upholstery, wireless phone charging, and a 17-speaker Burmester sound system with Dolby Atmos 4D sound are also standard - the latter being a clever feature that positions different elements of the audio, usually music, to give a 360-degree feeling, as well as turning bassier tones into a physical vibration via “tactile transducers” in each front seat’s backrest. Good for bassline junkies, then (apologies to Mr. Rascal).

With the $9400 'Plus Package', the E-Class also comes with 'Airmatic' suspension and rear-axle steering (which I’ll touch more on later), power-closing doors, 'Urban Guard' to monitor your vehicle while it’s parked, an illuminated grille up front, a more capable version of the MBUX 'Interior Assistant', four-zone climate control and Mercedes’ 'Digital Light' function, which uses the more-than one-million pixels in the headlights to project onto the road or surface in front of you when turning the car off or in driving situations to alert road users of potential danger.

A $6200 'Energising Package' adds multicontour front seats with comfort headrests, upgraded climate controls with 'Air-Balance' and fragrances, upgraded seat heating with armrest heating for the front occupants and heated seats for the rear.

The LS500 packs a 3.4-litre twin-turbocharged V6 petrol engine with impressive peak outputs of 310kW/600Nm.

This engine is designed to replace a V8 in terms of its power and feel, and in a lot of ways it does.

It might surprise you to learn the only other place you’ll see this engine used in Australia is the Toyota LandCruiser 300 Series.

The alternative present in the LS500h is a hybrid version of the same engine, sans the turbos.

With its electric assistance, power outputs are lower than this turbo version, but get close with a combined total of 264kW.

While I like the walloping nature of the turbocharged V6 we drove, I think the hybrid is a no-brainer choice for reasons explained in the driving segment.

This lone E-Class variant is powered by a turbocharged 2.0-litre engine pumping out 190kW and 400Nm, assisted by a 48-volt battery system. Under EQ boost, an extra 17kW and 205Nm is available for a short time.

It’s hooked up to a nine-speed auto that drives the rear wheels, and it’s all pretty traditional… for 2024, that is.

Mercedes says the E300 is able to hit 100km/h in a respectable 6.3 seconds.

Given the angry sounds emanating from under the bonnet of this LS every time I put my foot on the accelerator, I was surprised to find overall fuel consumption for the week was surprisingly good.

I used the LS to drive mostly around town, and yet it beat its own urban claim of 14.2L/100km, settling at 12.9L.100km, closer to the combined fuel figure of 10L/100km.

The hybrid is said to nearly halve this consumption, and I’m inclined to believe it based on previous experience with Toyota/Lexus hybrid systems. 

The LS500 requires at least 95RON unleaded fuel and has an 82-litre fuel tank. That means you're looking at a range of around 635km, using our real-world figure.

Mercedes claims the E-Class drinks 7.2L/100km on the combined cycle, and though we weren’t able to test that properly at the pump on the launch program, the trip computer showed up to 9.4L/100km after some quite spirited driving, which gradually averaged out to about 8.6L/100km in the afternoon once some more calm, E-Class-appropriate distance had been covered.

With its 50L fuel tank, the E-Class should theoretically be able to cover 694km on a single tank if the 7.2L/100km is achieved, though realistically it would be much less, 550-600km depending on driving style.

For a seemingly very sophisticated car, there’s something decidedly unsophisticated about the way the LS500 feels from behind the wheel.

Immediately, it feels nowhere near as cutting edge or even as special as something like the LC500, which to me becomes the truest expression of everything Lexus.

No, the LS500 in this turbo V6 guise feels a little bit too old-fashioned. It’s quiet and under acceleration feels like a V8 of just a few years ago, but the Aisin-sourced traditional torque converter automatic transmission is, dare I say, ordinary, lacking the finesse of its German rivals. It’s a problem which is easily solved. Pick the hybrid.

Elsewhere the experience is decidedly Lexus. If you’ve driven even an IS the experience is very familiar in the LS. The touchpoints all match, the steering is light and smooth with a healthy serve of electrical assistance, and, for the most part, the ride is as floaty and comfortable as you’d expect.

I say ‘for the most part’ because there are limits to what the LS’s adjustable-height air suspension will filter out on the enormous 20-inch wheels, complete with run-flat tyres.

Small bumps and potholes are dispatched with ease. Anything too large which passes a certain thud-factor will definitely be communicated to the cabin, though, making for a strange all-or-nothing ride quality.

It is impeccably silent inside, though. The engine is distant, even under load, and tyre noise is virtually non-existent thanks to specially designed alloy wheels with hollow chambers designed to minimise this effect. Now that’s more like what I expect from a Lexus.

It handles very well for such a big unit, making it at least decent to drive for the few buyers who will actually take the helm themselves.

This is no land yacht, it’s a surprisingly agile and adept machine when faced with a bit of blacktop. And it's here where the turbocharged V6 comes into its own compared to the hybrid, offering superior driver engagement.

While the E-Class has taken fairly sizeable steps in terms of its tech, it remains a fairly traditional car from behind the wheel, save for a few small changes like its mild-hybrid system and rear-wheel steering.

It’s still a petrol-powered rear-drive sedan, and it feels built more for eating up highway kilometres than it does tackling twisty turns. But that’s okay, because it will still do the latter.

Comfort is the main focus, clearly, for the E300, and the big Merc does it well. We weren’t offered a car without Airmatic air suspension on the launch, but the E-Class doesn’t seem like it would be particularly rough without it.

With it, however, large bumps and minor road annoyances only make their way into the cabin in the sense that you’re aware of them, but not bothered by them.

That slight dulling of feedback does extend to the steering wheel however, where, despite the rear-wheel steering making the car more nimble, the feedback to the driver is less encouraging of eager driving. 

While 190kW on paper doesn’t seem like enough, the E-Class makes do with its meagre engine quite well - and even though it can seem like it’s working a bit too hard at times, the E-Class’ natural state isn’t responding to a planted foot, so it’s unlikely to be a daily bother.

Engine noise, as well as wind and road noise are suitably dulled by the E300’s NVH fitout, too.

The tuning of its drive modes, in particular Comfort and Sport, seemed well-judged on our drive loop, with the option to set the 'Individual' mode to a custom configuration, most elements in Comfort while the drivetrain is set to Sport is particularly helpful when on gentle, high-speed country roads.

If you do start to approach the limits of the big sedan’s capability, it’ll let you know fairly early on. The heavy E-Class isn’t prone to sudden lurching or poor handling, and isn’t much phased by mid-corner bumps.

It’s not as dynamically engaging as some rivals, particularly the 5 Series, but it does appear to be a better provider of cross-country comfort.

ANCAP hasn’t had a go at crash-testing the E-Class yet, and it might not given the relatively small number that will be sold here compared to volume models, but Mercedes’ track record with safety is pretty stellar, and it’s extremely rare for a Mercedes to not cop the maximum five stars.

In the new E300 there are 11 airbags - plenty for a sedan. Mercedes lists front airbags, knee bags and pelvic/thorax airbags for the driver and front passenger, side bags for the rear and a front centre airbag.

It also comes with a fairly extensive suite of safety tech, including the usual ABS, lane-keep assist, blind spot monitoring and surround-view parking cameras.

But on top of that, there’s also ‘Evasive Steering Assist’, semi-automated cruise control with sign recognition, distance assist for following leading vehicles and can even project light arrows onto the road if leaving your lane, when 'Digital Lights' are optioned.

The E-Class also has a function if an imminent collision is detected in which it can, depending on the type of collision, take occupant protection measures. In the case of a side-on collision, the E-Class can “move an affected front occupant towards the centre of the car” before impact.

Lexus offers a five-year and unlimited kilometre warranty, and LX buyers get three years of complimentary membership to the brand’s ‘Encore Platinum’ owner experience, which includes three years of capped price servicing, free loan cars at the time of service, invites to events, discounts on fuel at Ampol outlets, and four uses of ‘Lexus On Demand’ which lets owners swap into another Lexus model for up to eight days at a time, as well as eight free uses of valet parking at certain locations.

Servicing on the LS occurs once every 12 months or 15,000km and is fixed for the first three years at $595. Very cheap for the space it plays in.

The E-Class comes with Mercedes’ fairly industry standard five-year, unlimited kilometre warranty, though Mercedes-Benz Australia was unable to confirm exact servicing pricing on the launch. 

It does however list pricing for the E-Class on its website for a three-service pack at $3325, four at $4535, and five at $6800, the latter averaging out to $1360 each.

This could increase with the new generation car, and Mercedes doesn’t list estimated serving pricing for new E-Classes yet in its booking system (I checked with one of the test cars).

Servicing intervals are every 12 months or 25,000km, whichever comes first.