To discerning buyers who prize compactness as highly as comfort in a luxury sedan, the 2026 Lexus IS and 2026 Mercedes-Benz C-Class are worth a look. Two perennial class favorites, they each have their merits. But their personalities are different enough that many buyers, after a pair of test drives, will have a clear favorite.
The current generation of the IS may be the more venerable of the two competitors, as Lexus refreshed it for 2021 after seven years. But Mercedes-Benz redesigned and upgraded the C-Class sedan for the 2022 model year. Both have been updated every year since, keeping them contemporary and loaded with high tech.
Let’s explore the highlights of the Mercedes-Benz C-Class and Lexus IS to see which compact luxury sedan appeals to you.
2026 Lexus IS
Lexus drastically simplified decisions for IS shoppers in the 2026 model year. The car was long offered with a choice of three engines, but now comes with just one — a 311-horsepower V6. It comes in rear- or all-wheel drive (RWD or AWD), and every trim level gets appearance upgrades from the Lexus F Sport performance lineup, as well as the option of an F Sport Handling Package. But this may be the last year for the IS. Lexus built an “ultimate edition” in 2025 — usually a sign that a production run is ending — and cut 4- and 8-cylinder engine options from the lineup.
Lexus IS Highlights
Classic styling: This is a matter of taste, but the IS will appeal to buyers who prefer feeling like they are driving a car rather than helming a console aboard the starship Enterprise. The exterior design continues to be sharp and is still the best it’s ever looked.
Resale value: Resale value is a Lexus calling card because Lexus holds its value better than most luxury brands, even the much-coveted Mercedes-Benz. We suppose there’s something to be said for not being on the leading edge of technology — that, and quality craftsmanship and dependability.
Mark Levinson Sound: Audiophiles take note — the optional 17-speaker Mark Levinson sound system available in the IS is one of the best you’ll find in this class.
Check this week’s Fair Purchase Price or see the IS models near you.
2026 Mercedes-Benz C-Class
The 2026 Mercedes-Benz C-Class lineup begins with the C 300, powered by a turbocharged 2.0-liter 4-cylinder engine with a 255-hp rating. This mild-hybrid engine couples to a 9-speed automatic transmission that can also transfer power to the rear wheels only or all of them simultaneously. The 48-volt mild-hybrid system can electrically deliver another 20 hp and 148 lb-ft of torque for quick bursts. Mercedes also offers a pair of high-performance AMG models, significantly more powerful and significantly more expensive.
Mercedes-Benz C-Class Highlights
Hi-tech cockpit: The C-Class has arguably the most tech-forward cabins in the compact sedan segment. Its MBUX (Mercedes-Benz User Experience) system can learn routines and automate some of your preferences. Want a car that automatically turns on the heated steering wheel and seats when the temperature is below freezing? You can program that into the C-Class.
Mercedes-AMG models: AMG modes are pricey, but Lexus has nothing to compete with them. C-Class buyers can opt for 416 hp and 670 hp versions that look aggressive with extensive functional vents and have tighter handling.
Biometric fingerprint scanner: Emphasizing the high tech of the C-Class, every trim level provides this cutting-edge access to the personalized-settings profile of each programmed user.
Check this week’s Fair Purchase Price or see the C-Class models near you.
Similarities
These both come in RWD or AWD, are offered with performance upgrades to improve handling, and carry nearly identical warranties.
Pricing
New 2026 Lexus IS Prices
|
Retail Price
|
Fair Purchase Price (19020)
|
|||
|---|---|---|---|---|
$46,795 |
$46,100 |
|||
$49,245 |
$48,500 |
New 2026 Mercedes-Benz C-Class Prices
|
Retail Price
|
Fair Purchase Price (19020)
|
|||
|---|---|---|---|---|
$50,900 |
$51,200 |
|||
$52,900 |
$52,700 |
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 2026 Lexus IS vehicles and New 2026 Mercedes-Benz C-Class 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
| 2026 Lexus IS | 2026 Mercedes-Benz C-Class | |
| Popular Powertrains | ||
| Engine | 3.5-liter 6-cylinder | 2.0-liter turbo 4-cylinder |
| Horsepower | 311 hp @ 6,600 rpm | 255 hp @ 5,800 rpm |
| Torque | 280 lb-ft @ 4,800 rpm | 295 lb-ft @ 2,000 rpm |
| Transmission | automatic, 8-speed sport w/direct shift | automatic, 9-speed 9g-tronic |
| Fuel Economy | N/A | 25 city/35 highway/29 combined mpg |
| Specs | ||
| Basic Warranty | 4 years/50,000 miles | 4 years/50,000 miles |
| Powertrain Warranty | 6 years/70,000 miles | 4 years/50,000 miles |
| NHTSA Overall Safety | Not rated | Not rated |
| Max Seating Capacity | 5 | 5 |
| Wheelbase | 110.2 inches | 112.8 inches |
| Overall Length | 185.4 inches | 187.0 inches |
| Width | N/A | 80.0 inches |
| Height | 56.5 inches | 56.6 inches |
| Turning Diameter | 34.2 feet | 37.6 feet |
| Headroom, Front | 38.2 inches | 40.0 inches |
| Headroom, 2nd Row | 36.9 inches | 37.5 inches |
| Legroom, Front | 44.8 inches | 41.7 inches |
| Legroom, 2nd Row | 32.2 inches | 36.0 inches |
| Shoulder Room, Front | 55.9 inches | 56.3 inches |
| Shoulder Room, 2nd Row | 53.4 inches | 55.6 inches |
| Cargo capacity | 10.8 cubic feet | 11.6 cubic feet |
Specification table reflects the typical configuration of vehicles shown.
Conclusion
The 2026 Lexus IS carries a lower starting price and holds its value better over time. We think it looks sportier, and its lower starting price means you can add sporty options like the F Sport Handling package without paying AMG prices. It’s likely the right choice for many buyers.
MBUX makes the C-Class feel a little more tech-forward, and some shoppers are drawn to the Mercedes name. Those are valid reasons to prefer the C-Class if the Lexus value argument doesn’t sway you.
