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words - John Wright
When it comes to buying prestige on a budget, are the German marques still highest?

Used Audi A6 v BMW 530i v Jaguar S-Type v Lexus GS300 v Benz E320

This year (2008) Mercedes-Benz celebrates 50 years in Australia and the marque has played a surprisingly consistent role.

The heart of Mercedes' first attempt to win the hearts and wallets of local customers was the medium-large 220S sedan, a car whose principal competitor was perhaps the new Jaguar 2.4 Litre and 3.4 Litre models. (It's inappropriate to call these cars Mark Is when talking 1958, because the Mark IIs were a year or so further down the calendar; you never have a 'Mark I' until the Mark II drives into view!)

The 220S quickly acquired a strong following. It was spacious, lovely to drive, quite fast, but reasonably economical. Build quality was superb, the cars being assembled locally from completely knocked down (CKD) kits imported from Stuttgart.

The current shape Mercedes-Benz E-Class, which effectively made its Australian debut in August 2002, can trace its lineage directly back to that car.

The compact Jaguars appealed to a rather different buyer. For similar money to a 220S, the sports-minded driver could obtain the 3.4 Litre, which was among the fastest four-door models available anywhere in 1958 with its top speed of 190km/h-plus and rapid acceleration.

The brand already had a strong reputation by 1958 and was trading heavily on its mid-50s successes at Le Mans. When Jaguar, struggling against its German rivals, launched the new S-Type in 1999, would-be buyers were invited to recall the marque's glory days of the 1960s. The Mark II and S-Type were at the heart of the brand's sales success, and both came directly out of the 1956 2.4 Litre.

In 1958 no other cars in the luxury market offered a similar blend of prestige, quality and performance to a Mercedes 220S or compact Jaguar. Rovers, Humbers, Daimlers (just two years away from being swallowed by Jaguar) and six-cylinder GMH-assembled Chevrolets were staid by comparison. The V8 Ford Customline appealed to a different buyer. There were no BMWs on offer. Audi and Lexus were still future tense.

Fifty years down the bitumen calendar, German marques predominate in the Australian prestige market. Mercedes-Benz and BMW occupy top billing with Audi shaping as perpetual challenger, along with Japanese 'newcomer' Lexus.

The E-Class, 5 Series, A6, mid-size Lexus and S-Type differ significantly from each other. But all have outstanding credentials in safety, luxury and quality and most reward the keen driver.

The Jaguar places a distant last, in sales terms. Unsurprisingly, it has the worst retained value. With the marque's future looking troubled as Ford looks to move on from its misguided purchase of Jaguar late last century, could the contrarian choice actually be the wisest when four years of depreciation have taken their toll?

Although all five manufacturers offer a wide choice of engines in their midsize luxury cars, the most popular four years ago were six-cylinder petrol units of about 3.0-litres. Online buyers will find plenty of choice.

Despite all the hype about Mercedes-Benz versus BMW, the truth is that comparatively few new car buyers 'shop' one against the other. There is almost the same kind of brand loyalty you find among Commodore and Falcon buyers. But many used car buyers will be experiencing a prestige car for the first time. It is only fair, then, to include Audi, Lexus and Jaguar as alternatives.

So put any preconceptions to one side and let's see how these German, English and Japanese luxury machines compare. You have $60K to spend but if the right car comes along you might be prepared to find an extra $10,000. And if it is a current shape E-Class or 5 Series at the top of your list, you will almost certainly have to spend the extra money.

The W211 E-Class was introduced locally in 2002 but to fall within our category of cars less than five years old, we will consider 2003 models. The E60 BMW arrived here in October 2003 but most will be 2004 models with satnav standard (from March). A year after the new 5 Series, Audi had its new and larger A6 ready for Australian customers, so we will look at the 2005 3.0 Quattro, some of which will be coming off two-year leases. Jaguar gave the S-Type a significant upgrade in October 2004 and our choice here is the V6 SE, plated 2005. In March of that year Lexus launched its new GS and we will place the up-spec Sport Luxury variant on the shopping list.

Even new these cars did not compete on precisely equal terms. In 2003 the E320 Elegance was priced at $119,900. The 530i cost $110,200 in March 2004. Third dearest was the GS300 Sport Luxury at $105,170 in March 2005. The A6 3.2 FSI Quattro cost $101,000 (satnav extra) and the Jaguar V6 Luxury was the only one to come in at less than six figures (just) at $99,900.

Only the A6 gives drive to all four wheels. All the others are rear-drivers.

2005 AUDI A6 3.2 FSI QUATTRO (more here)
-- then $101,000; now $60K
It has only been in very recent years that Audi has begun to mount a serious challenge to the established German champs in Australia. The current A6 has much to recommend it, especially in Quattro guise. If you choose Audi, you get more for your money in terms of standard equipment than in either a BMW or Mercedes. It also has outstanding safety credentials with a Euro NCAP five-star rating, all-wheel drive, and a tyre pressure monitoring system (an as yet underrated feature).

The 3.2-litre V6 FSI (direct petrol injection) engine has a healthy 188kW and 330Nm. It is teamed with a constantly variable automatic transmission (CVT), unlike the conventional automatics fitted to all its rivals here. Zero to 100km/h takes seven seconds, which is better than average for the group.

Though driving enthusiasts may find the different nature of the CVT hard to get used to, it is among the best of its type -- you should try before you buy.
 
While the A6 handles with aplomb it does so with an excessive trade-off in ride comfort, especially at low speeds, where the suspension does not cope well with an uneven surface. For many prestige buyers, the ride is too firm.

The other dynamic letdown is steering that, while direct, is too light and transmits very little feel.

Interior presentation is an Audi strength and it certainly trumps the 2004 5 Series in this respect. It has a fantastically user-friendly multi-media interface with brilliant map graphics.

Expect overall fuel economy in the order of 10.0L/100km, while steady cruising at 110km/h should drop consumption to significantly less than eight.

The Audi started out with a price advantage and, if anything, that has increased with the passing of three years. Look hard and you will find a pristine example with 35,000km for $60,000, which represents great buying.

Audi is on the march in Australia and resale values can be expected to improve. Sales of new A6s are now at about the rate of two-thirds those of its Mercedes and BMW rivals.

Search for used Audi A6 cars for sale here

2004 BMW 530i (more here)
-- then $110,200, now $70K
The E60 5 Series is almost as interesting for what you can't see as what you can. Controversy about its exterior styling seems to have quietened down in the four years we've had to grow accustomed to it.

There is no doubting the car's reputation as one that woos drivers. One reason for its dynamic excellence is weight distribution. Forward of the A-pillars it is mostly aluminium, giving it almost perfect weight distribution and saving lots of mass.

Certainly the 530i is some 140kg lighter than the E320. Indeed, at 1505kg, it is lighter than cars such as the Mitsubishi 380 and Toyota Aurion, so BMW has done brilliant work here.

The 530i's electric steering gives it quicksilver response at all speeds, so you always feel connected with the road. The handling is wonderful but with little compromise of the ride beyond some firmness at low speeds. From 0-100km/h it is quicker than every other car here except the Lexus, while its fuel efficiency is on a par with its Japanese rival and the Audi. On the open road the fuel consumption meter will hover around 7.5 to 8L/100km.

What does let the early version of the E60 down (it's been fixed now) is the interior treatment, where the dash actually looks less luxurious than it should -- mainly due to hard, unattractive plastics. You get the feeling there were some cost saved here.

At least BMW's engineers had made iDrive somewhat easier to master, thanks to the provision of a menu button.

Search for used BMW 530i cars for sale here

2005 JAGUAR S-TYPE V6 LUXURY (more here)
-- then $99,900, now $65K
When it made its Australian debut in 1999, Ford-owned Jaguar's new generation S-Type was far from perfect. There was a certain gawkiness about its styling, while quality was obviously below the high standard set by its German rivals.

Things quickly improved, however, with extensive modifications during the car's early years and by the time the S-Type received a thorough update in October 2004, it was quite desirable. The styling looked more integrated and the cabin was more luxurious and better finished.

Despite high expectations, the S-Type has been an international failure in sales terms. Locally, it ticks over at 10 to 20 units per month which means, frankly, that it is a 'bit player'. From a contrarian point of view, this makes the mid-size Jaguar worth a look, especially after the original owner has copped the brunt of sharp depreciation.

It's a rewarding drive. The V6 has a magnificently sporty sound when extended and even though outright performance is slightly below the class average, the aural experience rewards the enthusiast more than any other car here.

The Jaguar's engine makes an impressive 179kW but the car itself weighs about 200kg more than the 5 Series -- despite sacrificing 9kW, the BMW has more than half a second's advantage in the sprint to 100km/h (8.3 to 8.9sec). Weight is also the enemy of economy and the Jaguar will typically use an extra litre for every 100 kilometres.

That said, the S-Type steers beautifully and is nimble through corners without compromising ride comfort.

Interior ambience is impressive with lots of traditional Jaguar cues and on sheer luxury it rates close to the top of this class. But there can be no doubt that the S-Type feels the most old-fashioned. For some prospective buyers this might be a virtue, although slow sales suggest that Jaguar's version of retro has fallen flat.

Search for used Jaguar S-Type cars for sale here

2005 LEXUS GS300 SPORT LUXURY (more here)
-- then $105,170, now $70K
With 183kW and 310Nm from its 3.0-litre V6 engine, the Lexus GS300 invites buyers in this class to consider whether or not they need a V8 engine. But the very fact that Lexus has chosen a V6 rather than inline engine prompts some questions about the brand's focus.

In 1997 when the previous generation GS was launched, there was much hype about its use of an inline six and, while BMW was not mentioned, there could be no doubt that the engineers had looked to Bavaria for a role model. But no more -- if the straight six was so special in 1997, why the shift just a few years later?

Whether the cylinders are arranged in a vee or a straight line is irrelevant to probably 95 per cent of customers and Lexus has followed Mercedes-Benz and forsaken BMW's purist choice of an inline configuration. Almost no-one will notice.

This V6 is a lovely engine which delivers incredible silky refinement with excellent performance and economy. Zero to 100 km/h takes a whisker less than eight seconds and average fuel economy is in the order of 10L/100km.

The six-speed automatic transmission is impeccably smooth.

It is in the dynamics that the GS cannot match the best cars in this class. At low speeds the variable ratio steering works quite well, albeit not quite as quick as enthusiasts might like, but at higher speeds it feels a little strange.

Ride comfort, too, is compromised by the interventionist electronic systems. Over rough surfaces, the dampers switch to a firmer move and the normally serene Lexus becomes overly firm. 

Like every Lexus, the GS300 is beautifully built and finished. It exudes quality and at cruising speeds it is uncannily quiet and smooth.

The dynamic radar control may intervene a little early but it is a welcome standard feature on the Sport Luxury.

Finally, though there is much more Luxury than Sport. The interior is lovely, there are numerous surprise and delight features, but the GS300 comes up short on driving pleasure.

Search for used Lexus GS300 cars for sale here

2003 MERCEDES-BENZ E320 ELEGANCE (more here)
-- then $119,900, now $70K
In pure new car price terms the E320 does not quite belong in this group, but if you are prepared to buy a 2003-plate car rather than a 2004 or 2005 model, it comes back to the pack.

To get the level of performance provided by the 530i, you need the 3.2-litre six rather than the 2.4 in the E240. The message is: if outright performance is less important to you, look instead at the smaller-engined E-Class.

The E320 accelerates to 100km/h in 8.2sec despite having just five forward ratios in its automatic transmission (unlike the latest model, which has seven speeds and notably quicker acceleration). Maximum power is 165kW but the more important figure is peak torque -- 315Nm. Fuel economy averages 11.0L/100 km but you can get down to eight on the highway.

Like most Mercedes, this one feels absolutely solid. It is quiet and effortless but has an almost sportscar quality when really hustled. Thus although it feels weightier than the 5 Series and less nimble, it is almost as much fun on a winding road.

It rewards the enthusiast driver by allowing much of the electronic intervention to be switched off, unlike the Lexus.

Most observers would describe both exterior and interior treatment as elegant. The dashboard is especially attractive with its classy woodwork and well organised controls. And the view down the bonnet to the three-pointed star still works some magic on most occupants.

Tradition runs deep at Mercedes-Benz and it is easy to see the steady evolution from one E-Class to the next. There was a quality dip in the 1990s but this W211 model is right back on song.

It was not only the most expensive of these five when new but feels and looks the part.

Search for used Mercedes-Benz E320 cars for sale here

THE CARSALES NETWORK'S PICK OF THE BUNCH

The Driver's Choice
This one is surprisingly easy. It's the BMW 530i. You might be a little put off by the rather gauche fascia but if you look far enough down the road, the mid-sized Bavarian will always be your first choice.

The Sensible Choice
The left-field answer is the Jaguar followed by the Audi and Lexus (in no particular order), based on how much car - and how new a car - you get for your money. But you would really need to be looking at long-term ownership to take the plunge on any of these three.

The BMW has been seriously upstaged in presentation by the recently upgraded model and the styling still raises frowns. Thus the E320 shapes up as the most rational purchase.

 

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Published : Thursday, 7 February 2008


Disclaimer:
Editorial prices shown are a "price guide" only, based on information provided to us by the manufacturer. Pricing current at the time of writing editorial. Pricing prior to editorial dated 25 May 2009 may refer to RRP. Due to Clarity on Pricing legislation, RRP for those editorials now means "price guide". When purchasing a car, always confirm the single figure price with the seller of an actual vehicle. Click here for further information about our Terms & Conditions.
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