Lexus RC vs BMW M235i

What's the difference?

If you’re a buyer that thinks with their head, the RC 350 F Sport is the obvious choice when compared to its direct rivals.

After all, it looks great (at least to these eyes), feels luxurious in more ways than one, and is unrivalled when considering value-for-money.

But, if you think with your heart instead, it’s clear it is isn’t on the same level dynamically and therefore doesn’t feel as sporty to drive as its name suggests.

So, don’t let its sports car classification fool you, the RC 350 F Sport is more of a grand tourer, or a comfortable cruiser, to be precise, and an underrated one at that.

The badge might say one thing, but the 2 Series Gran Coupe sticks to the time-honoured template of being a compact yet comparatively practical three-box, four-door sedan, complete with a big boot.

More importantly, it drives and behaves like a BMW – which means sufficient-to-strident performance depending on grade, athletic dynamics and pleasing refinement on one hand, as well as a stiff price and a hard ride on the other.

A true BMW in name and nature, then..

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

Looking at the RC 350 F Sport, it’s hard to imagine how it became so anonymous on the road, whether you love it or hate it.

Up front, its striking design simply cannot be ignored, with its unique mesh 'Spindle' grille insert demanding attention.

Either side of it are the LED headlights and boomerang-style daytime running lights, which, again, cannot be missed.

Around the side, the RC 350 F Sport has all the hallmarks of a classic coupe, including a swoopy roofline, and looks all the better for it.

The 19-inch alloy wheels wrapped in a mixed set of Bridgestone Potenza tyres are particularly arresting thanks to their sporty 10-spoke design.

That said, the rear end is arguably the RC 350 F Sport’s best angle, at least universally, thanks to its crisp LED tail-lights and chunky bootlid.

The bumper below is also a looker, even with its fake side air intakes, while its diffuser insert is flanked by a pair of chrome exhaust tailpipes.

Inside, the RC 350 F Sport isn’t quite as good, with most of our criticism directed at the 10.3-inch central display, which is powered by an average multimedia system made worse by an incredibly fiddly touchpad controller. The physical shortcut buttons on hand are but small mercies.

Thankfully, Apple CarPlay and Android Auto support is now standard, so a better user interface is literally in your pocket… but you still don’t have a touchscreen to work with.

The RC 350 F Sport’s button-controlled 8.0-inch digital instrument cluster is much better, even if it’s more like a multi-function display due to its limited functionality.

While the centre stack and console designs are undoubtedly showing their age, there’s no doubting this is a premium model thanks to the selection of high-quality materials used throughout the cabin.

In our test vehicle, black leather-accented upholstery with (very cool) 'Tuscan Sun' yellow accents, piping and stitching covers the sports steering wheel, gear selector, sports seats, armrests, door inserts, knee rests and the instrument cluster. So, almost every touch-point.

Pleasingly, soft-touch plastics are used for the upper and middle dashboard as well as the door shoulders, with hard plastics only found on the lower dashboard, door bins and rear seat divider.

As per other Lexus models, the RC 350 F Sport has nice rose-gold accents on its steering wheel, gear selector, front air vents and centre console, while specific Naguri aluminium trim adorns its dashboard and door inserts. And there are also steel pedals.

BMW is calling the F74 a new-generation 2 Series Gran Coupe, and there have been obvious and even profound changes throughout and underneath, including to some of the sheetmetal.

But this is not an all-new car by any stretch, with the glasshouse, doors and roof amongst many other body items carrying over from the F44.

That now remarkably Kia Cerato-esque nose ushers in new LED lighting motifs and an updated kidney grille, but whether they sit easily with the rest of the car is debatable. Redesigned tail-lights, different colours and new alloys make up the majority of the exterior changes.

Betraying the latest 2 Series Gran Coupe’s newness claims are near-identical dimensions, with that redesigned front end and bumpers contributing to a 20mm increase in the F74’s 4546mm length, while revised suspension and damper settings help account for the 25mm boost in height (to 1445mm). The BMW’s 1800mm width and 2670mm wheelbase remain the same.

There’s a higher level of newness to be found inside.

Hope you’re not expecting the RC350 F Sport to be the first word in practicality, because it’s not.

Measuring 4700mm long (with a 2730mm wheelbase), 1840mm wide and 1395mm tall, the RC350 F Sport is a decently sized coupe, but that doesn’t mean it’s spacious. Hell, it’s hard to get into it the first place, let alone out.

We are of course referencing the token second row, which is cramped at best. In fact, behind my 184cm (6.0ft) driving position, there is no toe-room nor headroom. Yep, if you’re around my height or taller, get used to burying your chin into your chest.

Thankfully, legroom is better but still limited to less than two centimetres, while foot space is compromised by the unusually tall transmission tunnel. And in case you were wondering, even the first row is on the tighter side.

Beyond the central air vents, you’d think rear occupants would be cheered up with cupholders, a fold-down armrest and USB ports at the very least. Well, they don’t get any of that, with a couple of coat hooks the only amenities on offer.

And don’t forget that being a four-seater, there are only two seats in the second row, so this is definitely not a ‘family car.' That said, there are two ISOFIX and two top-tether anchorage points for child seats, so you can theoretically take a couple of younglings with you on a trip.

In-cabin storage options are very limited, with the glove box small in size and mostly taken up by the manual, while the central bin is useable but somewhat occupied by two USB-A ports, a 12V power outlet, and an auxiliary input.

And whatever you do, only bring up to two drinks with you, as beside the pair of cupholders next to the gear selector, there is no other place to officially store extras. Yep, the front door bins are only good for storing very short and narrow items.

The boot is a different story, with a decent 374L of cargo capacity, and it can be expanded by stowing the 60/40 split-fold rear bench, an action that can annoyingly only be performed in-cabin via the manual release latches.

That said, the boot’s tall load lip makes unloading bulkier items a little trickier, while getting them onboard in the first place is complicated by its wide but short aperture. At least there are four tie-down points on hand to secure loose loads?

During the media presentation at its launch, BMW described the 2 Series Gran Coupe as being almost as large as a 1990s E46 3 Series, and it is in all major dimensions except wheelbase.

Plus, being a front-drive-biased/transverse engine proposition instead of rear-wheel drive should make it roomier than the F74’s iconic ancestor.

The sense getting in is that this is certainly not too low or cramped as per a more-traditional coupe, with plenty of space for legs and shoulders, while even the optional sunroof fitted to our 218 left us with headroom to spare.

The redesigned dash is a visual and operational treat, with crisp, clear instruments, a logically presented and intuitive centre display screen offering fast and easy operation, excellent ventilation and ample storage. Full marks here.

Better still, attaining the perfect driving position is possible for most people, on brilliantly supportive front seats. This is the stuff BMW does right.

Improvement suggestions for the next update? Some people may complain about the somewhat less-than-premium feel of some of the lower-lying plastic trim; not everybody will love the swatches of colour stitching (we love it); why does the steering wheel have to be so wide-of-rim? Side and rear vision is restricted by fat pillars, rising shoulder lines and a shallow rear window; and there is quite a bit of road noise that enters the cabin at speed.

Still, even the back seat is sufficiently spacious for most users, with the sole exception of taller folk having to negotiate a sloping rear roofline. If you’re below 180cm, this should be fine. Most amenities minus overhead grab handles are also fitted.

Further back, the boot is surprisingly accommodating, with 430 litres of cargo capacity that’s enhanced by a 40:20:40 split-fold backrest, and the aperture should be big enough for bulkier loads, but the lack of a spare wheel will be bad news for many buyers. The supplied tyre-repair kit is just not good enough.

But, you know what is good enough? The engines BMW builds, that’s what.

This depends on how much you buy into this being a sporty Gran Coupe rather than a small sedan.

From $59,900 (all prices are before on-road costs), the German-made front-wheel-drive 218 base grade is slightly cheaper than the previous 218i equivalent, yet gains more kit. It also matches the A200 Sedan and costs a bit more than the (also recently facelifted) A3 Sedan, while offering similar performance and equipment to both.

Along with a host of advanced driver-assist safety (ADAS) systems like adaptive cruise control – to be covered in more detail later on – the base 2 Series Gran Coupe comes with the M Sport styling package inside and out as standard.

You’ll also find goodies like adaptive LED headlights with auto high beams, adaptive dampers, keyless entry/start, a curved all-in-one 10.25-inch instrument display/10.7-inch centre control display using BMW’s latest OS9 system offering cloud-based navigation, an M Sport steering wheel, heated sports front seats, a head-up display, surround-view camera, wireless smartphone charger, Apple CarPlay/Android Auto, BMW Connected Drive with auto emergency call and other services, artificial leather upholstery, a 40:20:40-split backrest, an electric tailgate and 19-inch M-Sport alloy wheels.

From $62,900, the 220 ditches the 218’s 115kW 1.5-litre three-cylinder turbo petrol engine for a 150kW 2.0-litre four-pot turbo, while the 233kW M235 xDrive from $86,600 adds a lot more muscle to that 2.0-litre engine, all-wheel drive, more ADAS tech, massaging front seats, a Harmon/Kardon audio upgrade, uprated brakes, a panoramic sunroof, a heated steering wheel, rear spoiler and higher-gloss trim.

Many of those items are available with a $6700 Enhancement pack on the lower grades.

These more-or-less line up with rival premium small sedans.

Note, though, that they are expensive compared to fine mainstream C-segment alternatives costing far less, like the Subaru WRX, Toyota Corolla hybrid and Mazda3. Or Hyundai’s criminally underrated Ioniq 6 EV. Labels, eh!

Still, for some folk, the 2 Series Gran Coupe’s swoopier silhouette might make it seem like more of a rival to the sleeker CLA than a mere A200/A3 competitor, and that Benz kicks off from about $15K more than the 218. If that’s you, the BMW might be construed as a bit of a bargain.

Since we’re talking about styling, let’s take a deeper dive into the F74’s newly minted looks.

The RC 350 is motivated by a lusty 3.5-litre naturally aspirated V6 petrol engine that produces 232kW of power at 6600rpm and 380Nm of torque from 4800-4900rpm.

For reference, the RC 300 uses a 2.0-litre turbo-petrol four-cylinder unit that develops 180kW at 5800rpm and 350Nm from 1650-4400rpm.

Either way, these outputs are exclusively sent to the rear wheels via a well-sorted eight-speed torque converter automatic transmission with paddle-shifters.

This combination helps the RC350 sprint from a standstill to 100km/h in about 6.1 seconds while on the way to its electronically limited top speed of 230km/h.

Three F74 powertrain choices are available for Australia in 2025. And none even remotely reflect what their respective badges imply on the boot.

The 218, for instance, is not powered by a 1.8-litre engine, but BMW’s long-lived B38 1.5-litre three-cylinder turbo petrol unit. Making 115kW of power at 6500rpm and 230Nm of torque between 1500rpm and 4600rpm, drive is channelled to the front wheels via a seven-speed dual-clutch transmission (7DCT).

With a kerb weight of 1420kg, the 218 has a power-to-weight ratio of 81kW per tonne, helping it achieve the 0-100km/h sprint time of 8.6 seconds, on the way to a 230km/h top speed.

Not enough? The 220 features the ubiquitous B48 2.0-litre (not a 2.2-litre) four-cylinder turbo petrol engine/7DCT combo, pumping out 150kW at 6500rpm and 300Nm from 1450-4500rpm. Tipping the scales at 1525kg for 98.4kW/tonne, its 0-100km/h time is 7.3s and top speed is 250km/h.

Want more? Stretching to the M235 xDrive sadly doesn’t mean a 3.5-litre in-line six, but a modified B48 2.0L/7DCT duo, delivering 233kW at 6500rpm and 400Nm from 2000-4500rpm to all four wheels. Result? Weighing just 50kg more than the 220, it boasts a heady 148kW/tonne, for a 0-100km/h of just 4.9s and a 250km/h v-max.

As with all of the UKL2/FAAR transverse-engine front-to-AWD platform models from non-electric Minis through to sub-X3/3 Series BMWs, you’ll find MacPherson-style struts up front and a multi-link independent rear end out back.

If you’re reading this outside of Australia, you may notice that none of the current F74 models offer mild-hybrid tech, in contrast to their European counterparts. And don’t go expecting any manual gearboxes either, unfortunately.

The RC350’s fuel consumption on the combined-cycle test (ADR 81/02) is 9.1 litres per 100 kilometres, while its carbon-dioxide emissions are 212 grams per kilometre, but both claims are a little keen.

In our real-world testing, we averaged 12.2L/100km, which is far cry from the above, given our result came from 180km of driving that was heavily skewed towards highway stints over city traffic.

For reference, the RC 350’s 66L fuel tank takes 95 RON premium petrol at minimum.

OK, so is the 2 Series Gran Coupe cheap to run?

BMW reckons the 218 and 220 will average 6.3 and 6.7 litres per 100km, which means combined average carbon dioxide emissions ratings of 143 and 152 grams/km respectively.

Filling the 49L fuel tank with 95 RON premium unleaded, that translates to around 775km in the 218, and 730km in the 220 between refills.

Predictably, the M235 xDrive uses more, at 7.7L/100km for a CO2 rating of 176g/km. That’s a distance of about 635km.

Over our launch run, which took us from Sydney’s Circular Quay to Wollongong, the 218’s trip meter was reading in the high 8s and about 10 for the M235.

The RC350 F Sport is actually pretty good to drive – so long as you understand what it’s about.

Think of it more as a comfortable cruiser than a sports car and you’ll forgive it for some of its shortcomings. Yep, it is that relaxing to drive.

While the F Sport’s suspension (independent double-wishbone front and multi-link rear axles with adaptive dampers) does have a sports tune, it still serves up a comfortable ride on most surfaces.

Naturally you can play with the five drive modes (Eco, Normal, S, S+ and Custom) on hand to increase its stiffness and therefore improve handling, but the difference between soft and ‘hard’ is negligible, so don’t bother.

Either way, the F Sport does have a noticeable habit of picking up sharper road edges, such as nasty potholes, and it's particularly prevalent at the rear. That said, it doesn’t detract from its luxuriousness all that much.

Where the sportiness really comes to the fore, though, is via the F Sport’s electric power steering system, which has a variable ratio.

As well-weighted as this set-up is as standard, you’ll find it hard to forget how sharp it is on turn-in. Among several factors at play, the obvious one is the F Sport’s rear-wheel steering system, which is better executed than most.

This technology turns the front wheels in the opposite direction to the rears at lower speeds but in the same orientation at higher velocities.

The result of the former? A mid-size coupe that feels like it has a short wheelbase, with the improved manoeuvrability especially noticeable in car parks. Conversely, the latter lends itself to greater stability when you need it.

And it’s a good thing it is the way it is, because the RC 350 F Sport has a kerb weight of 1740kg, which is not exactly sports-car light. This heft is a felt when cornering hard, even though body control is pretty strong overall.

Handling performance is also enhanced by the rear Torsen limited-slip differential, which helps improve grip upon corner exit, at which point the RC 350 gets to show off its straight-line abilities.

The V6 engine is buttery-smooth, but you really need to stick the boot in to fully enjoy it, with it only really starting to come alive when engine speeds are above 3000rpm.

That said, it’s easy to appreciate this character trait around town, where the RC 350 is truly unfazed. Take it onto the open road, though, and acceleration is more than pleasing.

The automatic transmission is a great dancing partner here, serving up delightfully smooth gear changes. It’s also surprisingly responsive, perhaps too responsive, as it can be quite fussy in city traffic, shuffling up and down ratios in quick succession.

Biggest gripe, however, is the digitally enhanced sound the RC 350 produces. Sitting inside, the noise being pumped in is satisfying, but you can’t help but acknowledge the aural deception at play.

Earlier, we mentioned that the 2 Series Gran Coupe is way more expensive than fine alternative sedans like the Mazda3 and Toyota Corolla.

And while that still stands, there is a remarkable solidity and refinement difference between those and the BMW that helps justify the premium. And nowhere is this more evident than from behind the wheel.

Sat on body-hugging seats and clutching that (too chunky) steering wheel, there is a sense of sporty occasion, backed up by quality trim and an aroma of expensiveness.

For a turbo three-cylinder car weighing 1.5 tonnes, the 218 does a lot with a little, offering spirited off-the-line acceleration and pleasingly lag-free throttle responses at lower speeds. You’d never call it fast, but it is a quick point-to-point urban mover. Only the unavoidable three-pot thrum lets you know you’re in the lowest mechanical spec. And, also, the delay at freeway speeds in building momentum when overtaking.

Which is why, for less than five per cent extra, the 220 with the 2.0-litre four-cylinder turbo would probably make a better buy. Sadly, that isn’t on sale yet in Australia, so we missed out on driving it during the Sydney launch. But in the scores of other BMWs and Minis we’ve tested this in, it’s a cracking little powertrain.

Whether the big leap (nearly $25K worth) to the M235 is worth it depends on how fast you drive and how much you value/need AWD. This is a terrifically muscular machine, since it provides rapid performance via a tidal wave of power, even with the lightest flex of your right foot. On-point and on-brand, this fun and fiery flagship possesses the grand-touring spirit that the rakish design and tech-heavy engineering promise.

To that end, in both the 218 and M235, the steering makes the driver feel connected to the car, resulting in precise and controlled handling. The driver-assist safety tech is beautifully calibrated and nuanced in its intervention, and the brakes are second-to-none.

What is also on-topic for a BMW is the firm suspension, despite the adaptive dampers fitted as standard equipment.

It isn’t stiff or overly uncomfortable, but bumps are certainly always felt, and they’re accompanied by fairly constant road-noise drone over some surfaces.

As such, you’re constantly reminded that dynamic athleticism is the priority here, rather than sumptuous comfort. We’ve experienced much worse from BMW, but a magic-carpet ride isn’t what’s in store for the 2 Series Gran Coupe owner.

So, what’s our verdict then? The 218 is a rorty little tryer that never fails to involve the driver, while the M235 ushers in an elevated level of acceleration, grunt and grip. We suspect that the 220 will be the Goldilocks-zone happy medium.

For (largely) better as well as for (occasionally) worse, these drive and feel like a BMW should.

The latest, F74 2 Series Gran Coupe scores neither an ANCAP nor EuroNCAP rating at this stage, but its F44 predecessor managed a five-star result back in 2019.

For the latest version, BMW is highlighting an elevated level of advanced driver-assist safety (ADAS), including lane-change/departure alerts, forward collision warning and automatic emergency braking tech that detects vulnerable road users like pedestrians and cyclists, rear cross-traffic warning, exit warning, adaptive cruise-control with full stop/go functionality, blind-spot monitor and traffic-sign speed-limit alerts.

No information on AEB operating parameters is available as yet for the F74, but the earlier series’ low-speed AEB worked from 8km/h to 85km/h and inter-urban AEB kicked in between 5-80km/h, while the lane-support systems functioned from 70-210km/h.

Tyre-pressure warning, 360-degree surround-view cameras and six airbags are also included, along with Parking Assistant Plus that brings sensors, automatic parking, a reverse assistant that automatically retraces the last 50 metres travelled and a drive recorder.

Note that the 218 misses out on the 220/M235 grades’ ADAS-related crossroads warning, evasion assistant tech, lane-keeping assist with active side-collision prevention and front as well as rear cross-traffic warning. These are available in the aforementioned Enhancement Pack, but at this lofty price point, they should be standard.

Finally, there are ISOFIX child-seat anchorages in the rear-seat outboard positions, along with a trio of child-seat tether latches.

As with all Lexus models in Australia, the RC 350 comes with a four-year/100,000km warranty and four years of roadside assistance. Both offers are a year behind that of fellow premium brands Mercedes-Benz and Genesis.

The RC 350’s service intervals are every 12 months or 15,000km, whichever comes first. A three-year/45,000km capped-price servicing plan is available, costing $495 per visit, which is not too bad at all.

Here, however, is where BMW can do a bit better.

While the five-year/unlimited-kilometre warranty is where most premium brands are, it falls short of several Asian alternatives. Roadside assistance is for just three years and there is no capped-price servicing.

Service scheduling is also condition-based, meaning the vehicle will alert the driver when a service is imminent. This may not suit everybody, and we always recommend at least every 12 months or 10,000km, just to be on the safe side.

BMW does offer pre-paid service packs that take in basic maintenance for the first five years at $2369 or $3782, including brake-pad replacement, which works out to be about $475 and nearly $760 annually respectively. There is also a cap on mileage during that time frame: 80,000km.