Luxury Car

2025 Mercedes-Benz C-Class vs. 2025 Lexus IS Comparison

The 2025 Mercedes-Benz C-Class and 2025 Lexus IS are small luxury sedans with strong reputations for quality and performance. Each one provides the comfort, safety, and tech features demanded by car shoppers in the premium sector.

The C-Class remains fresh from a complete redesign for the 2022 model year, one that brought with it updated exterior styling, a revamped cabin, and more advanced mild-hybrid drivetrains. The IS in its current form has been around for roughly a decade, though it did receive a sizable refresh for the 2021 model year.

Although both cars belong in the same automotive category, we’re kind of comparing apples with oranges here. For example, the C-Class has a big advantage with its more up-to-date tech and overall modernity, while the IS benefits from the usual Lexus reputation for reliability and strong resale values.

Let’s explore the highlights of the Mercedes-Benz C-Class and Lexus IS to see if there’s a clear winner. 

2025 Mercedes-Benz C-Class

2024 Mercedes-Benz C-Class in grey.

2024 model shown

The 2025 Mercedes-Benz C-Class lineup kicks off with the excellent C 300, employing a 255-horsepower turbocharged 2.0-liter 4-cylinder engine coupled to a 9-speed automatic transmission. Adding all-wheel drive (AWD, known as 4Matic in Mercedes-speak) is an extra $2,000. Changes this year include an updated infotainment system, a center airbag between the front seats, and various cosmetic choices. This generation of C-Class consists solely of sedans. The coupes and cabriolets of previous generations have been superseded by the CLE-Class, which we review separately.

Mercedes-Benz C-Class Highlights

AMG models: We think most buyers will be satisfied with the acceleration from the C 300’s turbocharged 4-cylinder engine — standstill to 60 mph happens in six seconds, which is pleasantly energetic. More excitement and passing power comes with the 402-hp turbo 4-cylinder unit in the AMG C 43. It also packs all-wheel drive and a sport-tuned suspension as standard. The AMG C 63 S E Performance model generates a mighty 671 hp and 752 lb-ft of torque with a plug-in hybrid drivetrain, and can rocket from zero to 60 mph in a mere 3.3 seconds.  

State-of-the-art infotainment system: The sleek, modern interior of the Mercedes-Benz C-Class features a 12.3-inch digital instrument display and an 11.9-inch touchscreen. This system is feature-rich, so there is a learning curve, but it’s well worth the effort. Wireless smartphone integration and a wireless charging pad are also standard.

Burmester audio: This 15-speaker Burmester audio setup comes in at the mid-range Executive trim level. It has exceptional clarity and sound quality. We absolutely adore this high-end system and we’re sure C-Class buyers will too. 

Check this week’s Fair Purchase Price or see the C-Class models near you.

2025 Lexus IS

2025 Lexus IS 500 F-Performance

Main variants of the 2025 Lexus IS range are the IS 300, IS 350, and IS 500. F Sport packages are also available. The entry-level IS 300 has a turbocharged 4-cylinder engine and rear-wheel drive (RWD). This generation of IS was introduced for the 2014 model year. However, Lexus has made steady improvements since then to keep its smallest sedan competitive, and sales have remained respectable. This year, F Sport versions gain more standard equipment.

Lexus IS Highlights

Engine choices: The 241-hp turbo 4-cylinder unit in the IS 300 is a solid choice if fuel economy and a lower price are key considerations. Adding all-wheel drive to the IS 300 also brings a 260-hp 3.5-liter V6. A 311-hp version of this same engine motivates the mid-range IS 350. Like the IS 300, the IS 350 is offered with rear- or all-wheel drive.  

Old-school thrills in the IS 500: The range-topping IS 500 is a wonderful anomaly, with a 5.0-liter V8 sending 472 hp to the rear wheels through an 8-speed automatic transmission (with steering column-mounted paddle shifters). We love the classic V8 sound of this engine, as well as its linear and immediate power delivery. 

Interior quality, resale value: The design itself is starting to look behind the times, at least compared with newer rivals like the Mercedes-Benz C-Class. Yet cabin quality remains exemplary, and everything feels built to last. Resale value is another IS strength — this luxury sedan won’t plummet in value once you pull off the dealership lot. 

Check this week’s Fair Purchase Price or see the IS models near you.

Similarities

Both the Mercedes-Benz C-Class and Lexus IS are comfortable to drive and easy to maneuver, thanks to their tidy dimensions. There’s seating for five, although accommodations in the back are a little more snug in the Lexus. Optional all-wheel drive is a boon for anyone living where roads can turn treacherous from snow, ice, or heavy rain. 

Pricing

New 2025 Mercedes-Benz C-Class Prices

Retail Price
Fair Purchase Price (92620)
$49,600
$46,004
$51,600
$47,859

New 2025 Lexus IS Prices

Retail Price
Fair Purchase Price (92620)
$41,610
$39,358
$43,580
$40,333
$44,935
$42,149
$45,655
$43,052
$47,010
$44,358
$60,595
$58,510
$65,095
$61,989

The Kelley Blue Book Fair Purchase Price for any individual used vehicle can vary greatly according to mileage, condition, location, and other factors. The prices here reflect what buyers are currently paying for New 2025 Mercedes-Benz C-Class vehicles and New 2025 Lexus IS vehicles in typical condition when purchasing from a dealership. These prices are updated weekly. The manufacturer’s suggested retail price (MSRP) quoted includes the destination fee, but does not include tax, license, document fees, and options.

Specifications

 2025 Mercedes-Benz C-Class 2025 Lexus IS
Popular Powertrains    
Engine Turbocharged 2.0-liter 4-cylinderTurbocharged 2.0-liter 4-cylinder
Horsepower 255 hp @ 5,800 rpm241 hp @ 5,200 rpm
Torque 295 lb-ft @ 2,000 rpm258 lb-ft @ 3,800 rpm
Transmission 9-speed automatic 8-speed automatic 
Fuel economy MPG24 city/33 highway/27 combined21 city/31 highway/25 combined 
Also Available Turbo gas-electric 2.0-liter 4-cyl.; AWD3.5-liter V6; 5.0-liter V8; AWD
Specs  
Basic Warranty 4 years/50,000 miles 4 years/50,000 miles 
Powertrain Warranty 4 years/50,000 miles 6 years/70,000 miles 
NHTSA Overall Safety Not rated5-Star
Max Seating Capacity 
Wheelbase 112.8 inches 110.2 inches 
Overall Length 187.0 inches 185.4 inches 
Width 74.4 inches 72.4 inches 
Height 56.6 inches 56.5 inches 
Turning Diameter 37.6 feet 34.2 feet 
Headroom, Front 40.0 inches38.2 inches 
Headroom, Rear37.5 inches 36.9 inches 
Legroom, Front 41.7 inches 44.8 inches 
Legroom, Rear36.6 inches 32.2 inches
Shoulder Room, Front 56.3 inches 55.9 inches 
Shoulder Room, Rear55.6 inches53.4 inches
Cargo Volume 12.6 cubic feet  10.8 cubic feet 

Conclusion

We still admire the Lexus IS for its reasonable price and generous standard features. Yet time marches on, the Mercedes-Benz C-Class feels more poised in its driving dynamics, and its tech is far more advanced. It also gets considerably better fuel economy with its standard drivetrain, while providing more rear legroom and trunk space. The C-Class emerges as the victor here.