Mercedes-Benz C300 vs Subaru Outback

What's the difference?

Over five decades, the Mercedes-Benz C-Class has pivoted between mastery and mediocrity, and all-too-often relied on that three-pointed star up front to win over buyers.

Thankfully, the W206 is one is one of the better generations. It's easier on the eye, comfier to travel in, more intuitive to use, safer across the board and a huge improvement to drive. On the evidence of the C200 and C300 launch grades, there's newfound depth and consistency to savour.

Sure, prices have gone up, the C200 could use a bit more power, the steering could benefit from a bit more feel, the odd build-quality glitch made itself heard and there's a fair bit of road noise at times, but overall, the C-Class now deserves to be at the top of your luxury medium sedan shopping list.

Particularly if you can afford to stretch to the rorty C300.

The Subaru Outback Sport Touring XT is what you get when you want a beefed-up station wagon masquerading as an SUV that can handle adventuring and haul the family around in comfort. The limited edition has all of the great features you'd expect from a top model and a reasonable price tag but its fuel thirst will turn some people off.

If you're checking out the new C-Class for the first time from the front, you'll probably think… hmm, it looks just like the old one, and that's largely true.

But a side view reveals proportions that have changed significantly, thanks to the more raked windscreen, shorter overhangs and cleaner lines, which give it a slightly smaller S-Class look.

Which is more in fitting with where Mercedes wants to place this car against its 3 Series and A4 competitors.

Additionally, the taillights are split for the first time, allowing for a wider boot aperture since the lid now contains some of the lighting elements.

The shrunken limo looks aren't just the whim of some designer or Mercedes-Benz marketing department copywriter, either.

Underneath is an albeit highly modified version of the latest S-Class' MRA2 platform, which results in the longest (at 4755mm) and widest (at 1820mm) C-Class in the series' 40-year existence, as well as the first with this level of electrification capability.

Height and wheelbase dimensions also see a stretch, by 8mm and 25mm to 1450mm and 2865mm over the previous model respectively, and to the benefit of passenger accommodation.

Speaking of which, get used to this new interior aesthetic and general layout – it's a look that's probably going to filter through to most coming non-EQ-branded Mercedes models over the next few years.

From S to C to future E and A classes and beyond. It's a rare instance of trickle-down economics actually working!

The Sport Touring XT model is only available in the exclusive Geyser Blue paintwork (you'll either love it or hate it), has green accents scattered across the body and sports sharply styled and dark 18-inch alloy wheels.

The rear gets black badging and a spoiler but the black plastic moulding that Subaru is well known for is well and truly present.

There are some small design differences between the limited edition and it's siblings but at the end of the day it looks like an Outback.

Head inside and you'll find a solid and well-built cabin. The dashboard features a flashy 11.6-inch tech screen but the instrument cluster is still mostly analogue with a small 4.2-inch screen.

There are heaps of buttons and dials to play with and you also get a proper gear-shifter. The design will make this a winner for folks who want a car to look like a car, with its controls where they expect them to be.

Overall, the cabin feels premium but isn't fussy.

One of the best things about the new C-Class is that it's larger and therefore roomier than before. It's also higher quality, easier to use, more comfortable to sit in and - overall - more of a delight to behold.

In contrast, the old C-Class dash looked and felt like it was designed for a much cheaper car, especially compared to Audi's efforts.

Obviously related to the S-Class this time around, it's clear Tesla provided the inspiration for the twin floating screen look and layout, which are just right in their driver orientation and ease of functionality.

There's never really been anything wrong with Mercedes' old front seats, but these AMG Line items are both sumptuous and bracing, keeping their occupants well located ahead of the clever and thoughtfully laid out dashboard.

The brilliantly high-resolution MBUX multimedia and voice-recognition system now works as it should - intuitively and logically, with the screen menus simple to recognise and easy to use, and most without the need to get lost in confusing sub-menus. Just like BMW has managed for years.

If you want to change the instrumentation design, it's now a couple of clearly marked steps, using handily placed switchgear. The same goes for the superb climate control and audio systems. And the wireless Apple CarPlay/Android Auto connected faultlessly and worked a treat. Effortless see-and-push operation all round, backed by concise and classy graphics.

No more degree in Earth-to-Mercedes comm skills required to master this C-Class interior.

Yet there's just enough old-school Benz features to appeal to brand diehards, from the eternal door-card mounted electric seat controls and column-mounted gear shifter, to the deep centre console and turbine face-level air vents. They meld together beautifully with the advanced tech also on offer, like the optional augmented-reality head-up display with 3D-graphics.

Annoyingly, on one of our test cars, that tradition also extended to a couple of squeaks and rattles, proving that maybe Mercedes hasn't quite conquered all its past quality gremlins. And, like most luxury cars nowadays, endless ambient lighting choices are available of dubious taste.

Never mind. This is the finest C-Class front-seat environment since, well, probably the original W210 190E's of the 1980s.

And all those extra dimensions pay dividends in terms of interior space in the back seat.

There's plenty of knee room even with the tester sat behind their 178cm frame; head room is adequate even with the optional sunroof fitted, and there's ample shoulder space. So, it's more comfortable than any C-Class ever has been in terms of sheer dimensions.

Additionally, the rear backrest is well angled, while the cushion is deep enough to provide sufficient thigh support. But the centre perch is a bit of a squeeze for all concerned. Best avoided.

There's also added practicality to be found with the large and deep door pockets, front seat-back map pockets and folding centre armrest, that not only has a tablet holder, but when pressed in twice, also reveals sliding cupholders as well. Clever.

The C-Class rear seat is really lacking for nothing, with face-level air vents, overhead lighting, grab handles and coat hooks all highlighting the level of thought that went into making this a practical compact family sedan.

Plus, the C-Class comes with this folding ski port, which along with the folding rear seats, increases boot volume from 455L to, well, a lot more. While that's not quite as good as others like the BMW 3 Series, it's big enough for this car.

Note that there is no spare wheel, as the tyres are of the limited-distance runflat variety.

The cabin of the Outback has always been practical but the premium features this grade comes with ensures proper comfort for all occupants.

Seat comfort is high with the powered front seats that have heat and ventilation functions but the driver benefits the most with the extendable lumbar- and under-thigh supports.

The rear row is almost as comfortable as the front where passengers feel secured by the padded side bolsters, while taller occupants will love the head and legroom on offer. The heat function for the outboards is appreciated and the directional air vents are easy to position.

The 213mm ground clearance means it's easy getting in and out of the model but access to the back row is a little annoying. The footwell lip sits high and catches unsuspecting feet but it's the doors that made my eight-year-old grumble this week because they're heavy to operate.

Storage up front isn't class-leading but you get a glovebox that fits a manual, a dual-opening middle console, two cupholders and drink bottle holders, as well as a sunglasses holder and small cubby in front of the gear-shifter (which is annoying to access).

Storage is much better in the rear with four map pockets, storage bins in each door, two cupholders and two drink bottle holders to choose from.

The boot has 522 litres of capacity available, which is plenty of room for a road trip or a big grocery haul and the level loading space makes it easy to slide things in and out. You get a proper full-size spare tyre, which is rare nowadays and the powered tailgate is always a handy feature.

Technology feels well rounded and the touchscreen multimedia system is responsive and easy to use. However, the portrait position makes the icons and text on the wireless Apple CarPlay look small and I may have made a few accidental calls this week because of it.

The satellite navigation is easy to use and there's also wireless Android Auto. Charging options are decent with each row getting a single USB-A and C port but the front misses out on a wireless charging pad.

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There are usually five variants available for the Subaru Outback but the model on test for this review is a special edition that blends the qualities and features of the top Touring XT but with some exclusive design changes.

Did we need it? Probably not but Subaru has wisely kept the price increase to a minimum, so the AWD Sport Touring XT is $57,490 before on-road costs, just $500 dearer than the usual top grade.

Despite looking more like a station wagon, the Outback sits in the large SUV segment and when it comes to an 'apples to apple' comparison, there's nothing really to compare it to.

With that in mind, the Skoda Superb Sportline wagon costs $74,990 drive-away, and a more traditional SUV like the Volkswagen Tiguan Allspace 162TSI R-Line is priced from $60,590 MSRP.

The standard premium equipment for the Sport Touring XT model includes Nappa leather upholstery, eight-way powered front seats with the driver enjoying additional lumbar and under-thigh support, as well as two-position memory function.

Also included are heating and ventilation functions for the front seats, heat function for the rear outboard seats, a heated steering wheel and sunroof with manual blind.

Technology is well-rounded with an 11.6-inch touchscreen multimedia system with satellite navigation, dual climate control, wireless Apple CarPlay and Android Auto, digital radio, AM/FM radio, two USB-A ports, two USB-C ports, two 12-volt sockets, and a nine-speaker Harman Kardon sound system.

Practical features include dusk-sensing LED headlights, rain-sensing windscreen wipers, keyless entry/ start, a full-size spare tyre and hands-free powered tailgate.

The limited-edition model is well-specified and while it lacks the extra two-seats that its rivals have, it still offers solid value.

Probably the biggest departure compared to any previous C-Class is this generation's switch to direct-injection four-cylinder-only powertrains – including the coming Mercedes-AMG high-performance versions. Now that should be interesting.

As mentioned earlier, the C200's four-cylinder turbo engine is now about 25 per cent smaller in capacity, down from 2.0L to a 1496cc 1.5L twin-cam 16-valve turbo engine. Dubbed the M254, it pumps out 150kW of power at a high 6100rpm and 300Nm of torque between 1800-4000rpm.

That's not to say it's lacking in muscle, though, since it can sprint from zero to 100km/h in 7.3 seconds, on the way to a 245km/h top speed. These outputs are at least a match for the bigger-engined 3 Series and A4 equivalents, by the way.

If it's more you want, then the C300 features a 1999cc 2.0L turbo version of the M254, delivering 190kW at 5800rpm and 400Nm between 2000-3200rpm. This slashes that 0-100km/h time to a speedy six seconds flat. There's also an extra 20kW of overboost available for short periods if you're really in a hurry, while - where legal - it's possible to hit 250km/h.

Both send drive to the rear wheels via a nine-speed torque-converter automatic transmission, while the 48V mild-hybrid system, dubbed EQ Boost, employs an integrated starter-generator and lithium-ion battery that provides an additional 15kW and 200Nm of electric boost at low engine speeds.

So, while it doesn't ever run purely on electricity, the electrification tech certainly either brings more punch or takes the load off the petrol engine, depending on how you're driving it.

The Sport Touring XT gets a 2.4L four-cylinder turbo-petrol boxer engine that produces a hefty 183kW of power and 350Nm of torque.

The re-tuned continuously variable transmission (CVT) system feels like it is changing gears but it's smooth and punctual, no matter the speed.

Remember when I said that the C-Class moved to an all-four-cylinder engine range? Well, that's primarily to help it better meet fuel consumption, efficiency and lower emission targets.

On the Australian combined fuel consumption cycle, the C200 manages 6.9 litres per 100km – and that's extremely impressive for a medium-sized sedan weighing almost 1.8 tonnes. So is the fact that the larger-engined C300 returns only 0.4L/100km more at 7.3L/100km. Fitted with a 66-litre tank, these numbers suggest that the former can average nearly 960km between refills while the latter can manage just over 900km.

These figures translate to averages of 157 and 164 grams per kilometre of carbon dioxide emissions respectively. On the flipside, both these Euro-6 emissions rated engines require 98 RON premium unleaded petrol to deliver their best.

So much for lab tests. Out in the real world, we drove both cars for several hundred kilometres on a hot summer's day, from inner Melbourne during peak-hour traffic, to some great curvy rounds out in central Victoria, featuring some tight corners and ample opportunity to really stretch both cars' legs.

Over these routes, we averaged an indicated 8.4L/100km in the C200 and – astonishingly – 7.4L/100km in the C300. Yes, the larger and more powerful engine proved more economical.

Clearly, along with the advanced aerodynamics, engine stop/start system and 48V mild-hybrid tech, all that downsizing works. No wonder Mercedes deemed it unnecessary to bother with diesel engines for this generation C-Class.

Unfortunately, the turbo-petrol engine is thirsty and the official combined fuel cycle figure is 9.0L/100km.

With its 63L fuel tank, you have a theoretical driving range of up to 700km, which is best-case scenario but expect less range if you’re a city dweller.

After doing a mix of open road and city driving this week, my real-world usage came out at 9.3L, which is better than I expected.

There has been a philosophical shift in how the C-Class is presented.

Even with their standard-in-Australia AMG Line package, the regular grades like the C200 and C300 are now leaning into the brand's luxury heritage, while the BMW-baiting sports sedan versions will be left to the coming AMG versions.

And this in turn profoundly informs how the W206 drives.

Even with the optional Sports Pack on 19-inch wheels, the C200 as tested finally feels like a premium midsized sedan experience. Muted at start up, the 150kW/300Nm 1.5L turbo steps off the line smartly and smoothly, its nine-speed auto shifting effortlessly through the gears to keep the engine feeling lively and lusty.

Around town it's easy to mistake the engine as a larger-capacity unit, since throttle response is instantaneous, with little to no lag detectable. It's a strong start for a base powertrain, especially as the C200 settles into a relaxed cruise at freeway speeds. Cycling through the driving settings also reveals how feisty the 'Sport' mode is.

But the 1.5L's lack of size becomes obvious the moment you need to overtake quickly, or when a quick squirt of acceleration up a hill is required, because the engine needs plenty of revs to approach that 6100rpm power peak. While still pretty brisk in these situations, it's also fairly vocal too, with a sense of having to work hard to maintain momentum.

Switching to the C300 highlights how much better suited the 190kW/400Nm 2.0L turbo is to highway driving, leaping forward with much more force and conviction, across the entire performance spectrum. In every metric, this is a better choice – throttle response, mechanical refinement, cruising ease. And the fact that the onboard computer showed less fuel consumption cements our preference for the larger-hearted C-Class.

In fact, both models possess a chassis that feels like it could do with a whole lot more power. Light and tight around town, the steering weighs up nicely at higher speeds, with a linear and reassuringly planted feel. The same also applies to how confident and controlled the Mercedes feels through fast, tight turns, yet settles into a relaxed and comfortable tourer along long, straight stretches of road.

It's a pity, then, that such dynamic agility and prowess doesn't really involve the driver, since the steering feels quite isolated from what's going on underneath; for the vast majority of C-Class buyers, that's fine. But, as a quick spin in any latest BMW 3 Series or Jaguar XE will reveal, there isn't an intimate, two-way connection going on here. That's probably going to be reserved for the AMG models.

Our C200 rode on bigger wheels and steel springs, while the C300 was fitted with optional adaptive dampers. In the previous-generation C-Class, the differences would be stark: a busy and jittery ride in the former, compared to soft yet still unsettled suspension in the latter.

That's all ancient history now, as even the 'passively' suspended C200 now isolates its occupants from the rough and tumble of our inconsistent roads. Still firmish, but no longer harsh.

And the C300 with adaptive dampers seems downright plush by comparison, while offering the driver personalisation options within the aforementioned driving models to tailor the steering, performance and engine sound settings that best suit the prevailing mood.

Too bad there's some road and tyre noise intrusion heard inside when driving over coarse bitumen roads. This is a common pitfall amongst German vehicles in Australia.

Still, it doesn't detract from the fact that the whole chassis set-up can at-last cushion and cosset occupants like, well, a mini S-Class.

Which is the whole point of the W206 C-Class. It now majors on comfort and reassurance like the better Mercedes-Benz models used to, while still being suave and sprightly enough to be a memorable – if not over-exciting – drive.

As a result, the C300 especially is a much-more likeable car than past iterations. Just remember to tick the adaptive damper option for the most optimal experience. Job well done, Mercedes.

The Sport Touring XT model is nice to drive. The best word to describe the on-road experience is ‘smooth’.

Power delivery is prompt and getting up to speed feels effortless. It's a great open roader but also feels spritely in the city.

The ride comfort is excellent and it’s only when you hit the highway that the wind noise starts to creep up, otherwise, the cabin is quiet and you can chat with back passengers without raising your voice.

The higher ride doesn’t translate to a bumpy suspension and while you’re aware of the road, you’re never bothered by it.

The steering is on the right side of firm for it to feel agile and competent no matter what you’re throwing at it. Visibility is also pretty good but the headrests in the back seat, when up, can hinder your rear-view vision.

The Outback sits at 4870mm long and 1875mm wide, so it fills out a car space but the higher ground clearance means you’re not worried about scraping on ramps and it’s relatively easy to park.

However, it feels cheeky to not have a 360-degree view camera system at this grade level. The reversing camera it comes with is sufficient, but you miss out on front parking sensors.

The Outback has a maximum five-star ANCAP safety rating from testing done in 2021 and features eight airbags which includes a front centre airbag.

It also scored highly across its individual assessment scores with ANCAP. It got 88 per cent for adult protection, 91 per cent for child protection, 84 per cent for vulnerable road users, and 96 per cent for its safety assist systems.

Standard safety equipment includes blind-spot monitoring, tyre pressure monitoring, LED daytime running lights, rear and forward collision warning, rear cross-traffic alert, lane departure alert, lane keeping aid, emergency lane keeping aid, emergency autonomous steering, lead vehicle start alert, traffic sign recognition, adaptive cruise control, reversing camera and front parking sensors.

The driver monitoring system has been improved from previous models and while still sensitive, it no longer chimes at you all the time, which is a welcomed change.

The Outback has two ISOFIX child seat mounts and three top-tether anchor points. The rear seat is wide enough to accommodate three child seats if they're not too large.

The auto emergency braking (AEB) has car, pedestrian, cyclist and back-over detection and is operational from 1.0 to 160km/h but it's usual to see this system operate from 5.0km/h, which is excellent.

Kudos to Mercedes-Benz for being the first luxury manufacturer in Australia to offer a five-year/unlimited kilometre warranty – matching most other mainstream makers. Lexus and Audi have only recently followed suit.

A five-year roadside assistance subscription is also included. Service intervals are 12-monthly or at every 25,000km, whichever occur first.

Additionally, a four-year capped price service plan is available, at $550 for the first year, $900 for the second, $1000 for the third and $2450 for the fourth, totalling $4900.

Alternatively, buyers can also choose three pre-purchase service plans to save a bit of money, but these must be bought prior to the first service.

Subaru offers the Sport Touring XT model with a five-year/unlimited kilometre warranty but it’s becoming more common to see longer warranty periods being offered now.

You can pre-purchase a three- or five-year servicing program and the three-year program costs $1406.57 (average of $469).

The five-year option costs $2646.17 (average $529 per service) which is reasonable for the class.

Servicing intervals are good at every 12 months or 15,000km, whichever occurs first.