They wear entry-level labels, but these two medium luxury cars are now very pricey. Does the BMW 320i or Mercedes-Benz C200 put the better foot forward?
Some of the most obvious price hikes over the last few years have been seen in the luxury car sector. Two titans of the luxury car industry, Mercedes-Benz and BMW, have raised the price of entry to their smallest sedans, the Mercedes-Benz C200 and BMW 320i, by five-digit increments in recent years.
Comparatively, the traditional rival in the Audi A4 has remained steady price-wise (though it’s decidedly older than the other two). Even still, you can get yourself into a base-specification Audi A4 35 TFSI for over $10,000 less than the equivalent Mercedes-Benz C-Class or BMW 3 Series.
These German luxury sedans have long meant to represent the best of the premium motoring while keeping price in check. But they’re facing pressure from relative newcomers such as the Genesis G70, Alfa Romeo Giulia, and even full-electric models such as the Tesla Model 3.
It’s likely that BMW and Mercedes-Benz shoppers will have already made their minds up, even before reaching a dealership to try out new luxury products. But, we’re going to find out which of these two recently refreshed stalwarts of the luxury segment is more worth its inflated price.
How much does the BMW 320i cost in Australia?
Since turning a corner with this new G20-generation facelift, BMW has bumped up pricing for the entire 2023 BMW 3 Series range. It now begins at $78,900 before on-road costs for the 320i, before rising sharply to $93,400 for the next step up 330i, and then again to $97,400 for the plug-in hybrid 330e.
To add some context, the 330i sat around $70,000 after its launch in 2019, and the 330e was $75,900.
Make no mistake, when you see a new BMW 3 Series on the road, the person behind the wheel has paid a lot of money to be there.
Back to the entry-level 320i – let’s outlay what an owner can expect with their purchase. The 2023 BMW 320i introduces revised styling at the front end with a pinned-back fascia (with LED headlights) and a tweaked kidney grille. There are new 18- and 19-inch wheel designs along the side, while the rear end is treated to lower bumper with an accentuated lower black portion.
Over the pre-facelift 320i, this new car receives a dual-widescreen driver display with a 14.9-inch infotainment screen and 12.3-inch digital instrument cluster, adaptive cruise control, keyless entry, and tri-zone climate control. This joins an M Sport package as standard, as well as Alcantara and Sensatec (faux suede and leather) upholstery, electric front seats, wireless smartphone mirroring and charging, head-up display, and 18-inch M Sport wheels.
BMW has been locked in an age-old battle with Audi and Mercedes-Benz with their own mid-size luxury sedans, the Audi A4 and Mercedes-Benz C-Class. But in this comparison, we’re lining it up against the latter.
How much does the Mercedes-Benz C200 cost in Australia?
Like a child actor, growing up before our eyes on a long-running sitcom, the 2023 Mercedes-Benz C-Class is no longer the simple, ‘baby Benz’ we once knew.
The W206 generation C-Class is now bigger than the original W124 E-Class (from 1984–1995), and it isn’t even the starting point for the Mercedes-Benz ownership lineup.
The Compact-Class has become the Corporate-Class, flush with luxury and technology for a new generation of buyer. And while the price has grown with the car’s size and stature, the C-Class still needs to compete in that mid-size executive market, so it still needs to feel relevant among the BMW 3 Series and Audi A4s of this world.
The AMG Line kit (with 18-inch wheels) is a standard feature on the C200, although the new ‘Edition C’ option swaps this for the more subtle Avantgarde styling package for no additional cost, which makes the C200 look a lot more sporty than it is. Frankly, this is what everyone seems to want, so it makes far more sense to have this as part of the base configuration.
We take a look at the $81,700 (before options and on-road costs) 2023 Mercedes-Benz C200 to see if there’s enough substance behind the sticker to put the C-Class on your shopping list – and whether it’s worth more than the BMW 320i.
| Key details | 2023 BMW 320i | 2023 Mercedes-Benz C200 |
| Price (MSRP) | $78,900 plus on-road costs | $81,700 plus on-road costs |
| Colour of test car | M Brooklyn Grey | Selenite Grey |
| Options | Metallic paint – $1538 Visibility Pack – $3692 – Adaptive headlights – Sunroof M High Gloss Shadow Line with Extended Contents – $385 |
Vision Package – $3153 – Sunroof – Head-up display – Front seat memory Sport Package – $1307 – 19-inch wheels – Tinted rear windows Anthracite wood trim – $538 Burmester 3D Sound System – $1615 Metallic paint – $1230 |
| Price as tested | $84,515 plus on-road costs | $89,543 plus on-road costs |
| Drive-away price | $93,114 (Melbourne) | $95,929 (Melbourne) |
How much space does the BMW 320i have inside?
This latest invigoration with the large single-pane screen is a brilliant update to an already modern and tech-infused 3 Series cabin. Materials used throughout the interior are high quality and befit the price point and positioning. They also feel built to last the distance with a sturdy fit and finish.Space in the front row is decent, though I found my leg was encroached upon by the transmission tunnel. For reference I’m 194cm tall, so shorter drivers are unlikely to suffer the same fate. You’re treated to a low driving position, the seats are comfortable and supportive (with adjustable bolstering), and everything falls ergonomically to hand.
BMW is one of the latest to introduce a little nib shifter in place of its traditional gear selector wand. It does mean there’s more room to wave your hand over the centre console, but it does take some getting used to (if you’re a BMW traditionalist you’ll be continually reaching for the old gear selector).
Unfortunately, BMW’s moved a majority of the climate controls to the infotainment screen, which is plainly a bad idea. It means you must cycle through several screens just to adjust the temperature. There’s a dizzying array of content on the screen to waft through too, but more on the infotainment next.
Moving back, the second-row seats are a squeeze behind my own driving position and are best reserved for young kids or adults you’re not fond of. There is enough room to not be cramped, but the lack of foot room and knee space will annoy on longer drives.
There’s a 480L capacity at the back, but the boot doesn’t feature a power tailgate functionality. The rear seats fold forward in a 40/20/40 format.
The modern design blends well with the array of technology implemented around you. From subtle LED lighting within the air vents to flowing dashboard panels, and of course the pair of screens (11.9-inch for the central infotainment and 12.3-inch for the instrument cluster), there is no question that this is the new C-Class.
It looks slick and upmarket, and in true Mercedes-Benz fashion, is very much a scaled-down version of what you’ll find in the larger and even more expensive (from $244,700) S-Class.
You sit low, but comfortably, although taller drivers (or just those with bigger feet) may find the driver’s footwell a little awkward at first, with the left of the firewall intruding slightly where your foot wants to naturally rest.
Storage is good, with a slick hideaway cover offering a deeper cavity than on the previous W205 generation, allowing your phone (on a charging pad) to sit out of distracting view while still allowing the cover to be closed. There’s a pair of USB ports and even more storage in the central armrest.
Rear passenger space isn’t bad either, with the new car seeing an additional 25mm between the wheels, and 105mm extra overall length (over the W205), which affords a little more knee and legroom for those in the back.
The twin sunroof panels (part of the Vision Package) offer a scallop in the roof line, which again translates into a bit more headroom.
While there is an armrest with cupholders and a bit of a janky phone holder, there are no rear USB ports (they can be added as an option), which we feel is a bit of an oversight.
The boot is the same volume as the previous car (455L), but the 60:40 split seats can be folded with slick remote releases on the side of the cargo area lining.
Overall fit and finish is good, although some of the touch surfaces, like the seat controls, feel a little light and ‘flexy’ as you press them, as they are now touch-sensitive panels rather than individual buttons.
| 2023 BMW 320i | 2023 Mercedes-Benz C200 | |
| Seats | Five | Five |
| Boot volume | 480L | 455L |
| Length | 4713mm | 4755mm |
| Width | 1827mm | 1820mm |
| Height | 1440mm | 1450mm |
| Wheelbase | 2851mm | 2865mm |
Does the BMW 320i have Apple CarPlay and Android Auto?
BMW has consolidated its infotainment screens into a singular long pane of display that stretches from the centre of the dash across to the driver’s instrument cluster. This pane is actually made up of two separate 14.9- and 12.3-inch screens.It looks very slick in its design and presents an extremely high-definition picture.
BMW has a reputation for its innovative and easy-to-use infotainment systems, but unfortunately the new iDrive 8.0 is not the simplest user experience. The layout arrangement of menu lists and the content-rich home page are confounding, while you’re often overwhelmed to complete simple tasks. The amount of icons on the app screen is bewildering, and it almost seems as though the designers have filled out the page full of icons to look populous.
Thankfully BMW’s still included the rotary controller to navigate the screen, but there’s little doubt the system is designed to be touched. I’ve loved the simple rotary controller that accurately takes you to the right infotainment function, but it’s tricky to prod your finger on the screen and maintain focus on driving.
The voice-activated BMW assistant does help, but shouting “Hey BMW…” is still hit-and-miss whether you’ll get a response.
I ended up running the majority of my week through wireless Apple CarPlay, which works really well. Also embedded within the system is wireless Android Auto, digital radio (DAB+), embedded satellite navigation, traffic and news updates, and app-based connectivity allowing remote access to vehicle check or remote locking and unlocking via a compatible smartphone.
Here’s hoping the iDrive system returns to a simpler layout in the next generation.
The ‘Hey Mercedes’ voice assistant has improved, and can now control more functions of the car, but it still isn’t perfect. Requests work most of the time, but it still seems that the Australian twang isn’t quite as easy to program around as we’d like it to be.
We’re not suggesting that saying ‘Hey Mercedes, call Sarah Connor’ will accidentally summon a time-traveling robot assassin from the future, but you might be leaving a voice mail for ‘Sasha Collins’ instead.
You don’t need to talk to the car, though, as you can interact with the screen by touch or by using the thumb-swipe controls on the steering wheel.
There’s so much depth to the system, with a very high level of considered user design, that it basically leaves every other automotive infotainment system in the dust.
There is support for Apple CarPlay and Android Auto, as well as integrated DAB+ radio, augmented street sign navigation (as part of the Vision Package) and even a cool (but a bit pointless) live feedback demonstration of what the car is doing, in terms of suspension compression, throttle input and even the current angle of incline.
While it could be argued the system is massively complex, it isn’t hard to use, even while on the move. The bigger downside is the huge amount of smudgy finger marks you get on the giant glass panel. Pro-tip, keep a glass cleaning cloth handy in your door pocket.
The system links to the Mercedes Me telemetry app too, so you can send information to the car remotely, either to help with navigation or just to close the sunroof (or lock and unlock it if you have your phone and not your keys).
This can store your user preferences too, and you can log into the car using a fingerprint so that each driver can have their seat position and cabin set up immediately configured as soon as they activate their profile.
Is the BMW 320i a safe car?
The entire BMW 3 Series range was tested by ANCAP at the vehicle’s launch in 2019 – it scored a full five stars. However, the criteria it was tested against have been updated in recent years, which means it may be more difficult for this car to achieve a full five-star rating today.In terms of a score breakdown, it scored highly for adult occupant protection (97 per cent), and received 87 per cent for child occupant protection, 87 per cent for vulnerable road user protection and 77 per cent for safety assist.
Is the Mercedes-Benz C200 a safe car? The Mercedes-Benz C-Class range scores a full five stars with ANCAP as of 2022.Breaking it down, the C-Class scored 91 per cent in adult occupant protection, 90 per cent in child occupant protection, 80 per cent for vulnerable road user protection, and 84 per cent for safety assist systems.
| At a glance | 2023 BMW 320i | 2023 Mercedes-Benz C200 |
| ANCAP rating & year tested | Five stars (tested 2019) | Five stars (tested 2022) |
| Safety report | ANCAP report | ANCAP report |
What safety technology does the BMW 320i have?
BMW includes an array of active and passive safety tech from the entry-level variant in the 3 Series range. This means the 320i receives forward collision warning, autonomous emergency braking (including pedestrian detection), lane-keep assist, traffic sign recognition, lane-departure warning, blind-spot monitoring, and rear cross-traffic alert.
It also receives a reversing assistant and adaptive cruise control, though curiously the latter isn’t accompanied by a lane-centring function, which we’d expect at this price point.
Dual frontal, side chest-protecting and side head-protecting (curtains) airbags and a driver’s knee airbag are standard.
What safety technology does the Mercedes-Benz C200 have?
The Mercedes-Benz C200 includes 10 airbags, including a front-centre bag, and a basic suite of driver assistance aids like a 360-degree camera, adaptive LED high-beam headlamps, adaptive cruise control and a lane-departure warning system.
How much does the BMW 320i cost to run?
Until recently, BMW was one of the last hold-outs still offering a three-year warranty with its products. Thankfully that is no longer the case, with the brand now including a five-year/unlimited-kilometre offering.
Unfortunately, the complimentary roadside assistance program remains at three years.
Servicing packages are available for the BMW 3 Series – a five-service (or 80,000km) basic package costs $2150. Services should be completed on an as-needed basis (the car will tell you when it needs maintenance).
The BMW 320i will cost $2179.42 per year to insure based on a comparative quote for a 35-year-old male driver living in Chatswood, NSW. Insurance estimates may vary based on your location, driving history, and personal circumstances.
How much does the Mercedes-Benz C200 cost to run?
So yes, the new C200 is more expensive than the old C200.
It’s $14,000 more expensive if you look at the entry prices ($81,700 against $66,900, both before on-road costs), but the AMG Line pack is now standard ($2846), most of the features in the old $1769 Comand Package are now included with MBUX, and the same goes for the $692 seat comfort package and $308 wireless charging package.
Bottom line, it’s not an apples-to-apples comparison, and while the car is undeniably more expensive, it’s undeniably more car.
Servicing is marginally cheaper than the old car too, at $2650 for three years ($2750 for the W205) and $5200 for five years ($5450 for the W205).
All Mercedes-Benzes receive a five-year/unlimited-kilometre warranty.
The Mercedes-Benz C200 will cost $1936.31 per year to insure based on a comparative quote for a 35-year-old male driver living in Chatswood, NSW. Insurance estimates may vary based on your location, driving history, and personal circumstances.
| At a glance | 2023 BMW 320i | 2023 Mercedes-Benz C200 |
| Warranty | Five years, unlimited km | Five years, unlimited km |
| Service intervals | Condition-based | 12 months or 15,000km |
| Servicing costs | $2150 (5 services) | $2750 (3 years) $5200 (5 years) |
| Fuel cons. (claimed) | 6.5L/100km | 6.9L/100km |
| Fuel cons. (on test) | 6.6L/100km | 7.7L/100km |
| Fuel type | 95-octane premium unleaded | 95-octane premium unleaded |
| Fuel tank size | 59L | 66L |
Is the BMW 320i fuel-efficient?
BMW claims a low 6.5L/100km fuel efficiency on a combined cycle encompassing both rural and urban surroundings. I came very close to this claim recording 6.6L/100km over the course of a week, though my use case favoured highways.
BMW recommends the car only be refuelled with 95-octane petrol, which is more expensive than regular unleaded petrol.
Is the Mercedes-Benz C200 fuel-efficient?
Mercedes-Benz claims a 6.9L/100km fuel efficiency on a combined cycle. On test, we recorded 7.7L/100km over our week with the car driven on suburban roads.
Mercedes-Benz also recommends 95-octane fuel for the C200.
What is the BMW 320i like to drive?
Even at the lower end of the 3 Series spectrum, there’s no doubt that the 320i remains a sporty driving experience – especially with M Sport parts fitted.It rides firmly, steers with intent, shifts ratios diligently, and the engine is punchy enough for a spirited back-road blast. You need to know this going into the purchase, because it’s the diametric opposite of the new Mercedes-Benz C-Class that prioritises luxury with a wallowy drive experience and soft ride comfort.
The suspension feels tight and doesn’t relent all too much when driving over large road annoyances like potholes or speed humps. Granted, it doesn’t jar over these impacts or feel overly rough, but it’s an intentional dynamic feel that some buyers might not appreciate.
Steering the car is easy with the chunky steering wheel and an accurate turn-in, while the car stays flat through corners and doesn’t let mid-corner bumps upset its stride.
BMW has a fascinating ability to tune a four-cylinder engine to perfection – extracting impressive outputs while balancing frugal fuel economy. In the 320i’s 135kW/300Nm tune, the turbocharged four-cylinder punches above its on-paper figures. Put your foot down and there’s a perky surge of power from the engine and the resulting hurried acceleration is swift.
The eight-speed automatic transmission is a very smooth operator whether you’re rolling about through traffic or demanding a lot, up and down hills. It’ll accurately serve up an appropriate ratio for any given situation.
While it is a sporty-leaning sedan, it’s not at the expense of refinement. The 320i is quiet, well put together, and engine noise through to the cabin is limited.
Around town it’s an easy car to park and zip around in, with good visibility out of the cabin despite a low-slung stance and driving position.
What is the Mercedes-Benz C200 like to drive?
Under the long bonnet of the new C200 is a comparatively small 1.5-litre four-cylinder turbocharged petrol engine with a 48-volt mild-hybrid starter-generator connected between the motor and gearbox.This delivers a reasonable 150kW at 6100rpm and 300Nm between 1800 and 4000rpm.
It’s that low-end torque you notice the most, with the C200 able to smoothly get up to speed in both urban and touring environments, albeit not in a particularly hurried way.
Typical of the C-Class, though, regardless of engine, once you’re up to pace it will hold speed well and it tours just as happily as it commutes.
The excellent nine-speed automatic is typically invisible to normal driving, as it’s ‘normal’ driving where the C200 is best suited.
Don’t go in expecting a rocket ship, and you won’t feel like pushing the little four-cylinder around the rev range. You can change up to Sport or Sport+ drive modes, but there’s no real point unless you find yourself on a particularly deserted stretch of country road.
This car is a mature and easy choice, and it’s best enjoyed when driven that way. Smooth, quiet, comfortable, and easy – just the way it should be.
Fuel consumption is claimed at 6.9L/100km, and we saw a little bit higher due to a more urban-centric driving loop.
The mild-hybrid system doesn’t do a huge amount to lessen daily fuel use, but instead allows the car to transition more smoothly from off to on when in stop-start traffic.
We will say that the system takes a bit of getting used to under brakes, where the initial pedal feel changes as you switch from regeneration mode (to charge the EQ capacitance battery) to actual friction braking. It’s more noticeable at slow speeds, and just feels a bit funny with the car still braking predictably, but the pedal itself translates a definite difference through the type of braking force.
Ride comfort is good, although we noted that while the car would compress well at the front, over sharper surface changes, the rear suspension would occasionally feel fussy as the car sorted itself out again.
But these are minor quibbles, with our time in the C200 leaving a positive, if not slightly muted, feeling for the car.
Bottom line, it’s not the most exciting Mercedes-Benz out there, but it’s not trying to be.
| Key details | 2023 BMW 320i | 2023 Mercedes-Benz C200 |
| Engine | 2.0-litre four-cylinder turbo petrol | 1.5-litre four-cylinder turbo petrol, 48-volt mild-hybrid |
| Power | 135kW @ 6500rpm | 150kW @ 6100rpm |
| Torque | 300Nm @ 1350–4000rpm | 300Nm @ 1800–4000rpm |
| Drive type | Rear-wheel drive | Rear-wheel drive |
| Transmission | Eight-speed torque converter automatic | Nine-speed torque converter automatic |
| Power-to-weight ratio | 91kW/t | 87kW/t |
| Weight (tare) | 1478kg | 1722kg |
| Turning circle | 11.4m | 11.1m |
Should I buy a BMW 320i or a Mercedes-Benz C200?
As stated from the outset, it’s likely luxury buyers – whether they’re in the BMW or Mercedes camp – have already made up their minds about their purchase. However, that doesn’t mean we won’t decide a winner out of this comparison.
With two high-flying executive expresses like these, it was always going to be a game of Top Trumps to decide a winner. Let’s break it down.
On price, the BMW 320i scores a clear win over the Mercedes-Benz C200 by a $2800 margin. Interestingly, as an aside, the single retail price sales structure employed by Mercedes-Benz hasn’t affected its popularity nearly as much as it has mainstream manufacturer Honda, which also introduced a set-price sales model.
Talking interiors, the Mercedes-Benz wows on initial impression thanks to an array of screens, eye-catching design details, and an array of high-end materials. By comparison, the BMW feels more austere in its presentation. Both contain a comfortable amount of room for even taller passengers, but it’s the Mercedes-Benz that is easier to use ergonomically. There appears to be more storage space in the Mercedes-Benz because it doesn’t include a centre console-mounted shifter, plus its infotainment screen is neatly at hand, whereas you need more of a reach for the BMW’s.
Speaking of which, it’s the Mercedes-Benz’s software that is far easier to get your head around and use. There are handy shortcuts from a home page to skip between apps and functions, while BMW’s system uses confounding menus with countless apps to select from. To put it simply, you’ll skip the iDrive software for the simplicity of smartphone mirroring, whereas within the Mercedes you’ll be wholly happy with its MBUX experience.
To own, the Mercedes-Benz C-Class was the more attractive option due to its five-year warranty. Only recently did BMW match the program. However, the BMW is by far the more affordable car to service. Conversely, the Benz’s $1936 insurance quote places it as more affordable to insure.
BMW buyers have traditionally favoured a sporty driving experience, which the 320i delivers in spades. However, buyers at the entry level of medium luxury sedans are arguably seeking a plush driving experience rather than setting lap times. It’s for this reason we wonder why the 320i is tuned firm in its suspension, whereas the C200 is comparatively cloud-like.
In engine outputs alone, the Mercedes-Benz also wins out over the 320i, despite the former having a smaller-capacity engine.
This impressive performance, plus the more befitting plush ride quality, is part of the reason why we crowned the Mercedes-Benz C-Class as the 2023 Drive Car of the Year Best Medium Luxury Car.
Though you’ll pay slightly more from the outset, it’s the better ownership experience based on its high-end interior, easier infotainment system, and more luxurious driving experience. Not only is it a far better car than its predecessor, and worthy of its higher price, the Mercedes-Benz C200 is a better buy than the BMW 320i.
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