The 2006 E500 was available in sedan and wagon versions, which remained essentially unchanged from the previous year. Both were powered by a 5.0-liter V8 engine that produced 302 horsepower and came with a seven-speed automatic designed for more fuel-efficient driving and better acceleration. The transmission came with the Touch Shift feature, which enabled the driver to upshift and downshift manually by nudging the shift lever left or right.
The E500 wagon was equipped with the automaker's 4Matic all-wheel-drive system, which provided improved handling, stability, and traction in all types of driving conditions. In addition, the wagon came with third-row seating that folded down to provide additional cargo space.
In keeping with their status as the leaders in Mercedes-Benz' important mid-size luxury car category, the E500 sedan and wagon were well-equipped with both luxury features and high-tech mechanical systems, including a self-leveling system, anti-lock brakes, traction control, 17-inch wheels, and an Electronic Stability Programming (ESP) anti-skid system. They also came with the automaker's TeleAid emergency communication and assistance program.
Other standard features included leather seats with power adjustment in the front, wood interior trim, a leather-trimmed steering wheel, multi-zone automatic climate control, dual front and side airbags, power windows, power exterior mirrors, cruise control, and an AM/FM audio system with a CD player.
A DVD-based navigation system was among the options. Other options included Dynamic Drive seats that adjust automatically to support the driver under heavy cornering, a twin sunroof with power sunshades, and a smart cruise control system that automatically adjusts speed to maintain a set distance from the car you're following.
The E500 models generally received positive marks for 2006, with their smooth ride, quick acceleration, responsive handling, and numerous creature comforts cited as positive features by drivers. Some even noted they were pleased with the cars' gas mileage.