Mercedes-Benz C-Class vs BMW X3

The Mercedes-Benz C-Class was the automaker’s entry-level model, but it needed a new role. Mercedes now has a line of compact cars serving as lower-priced entryways to the brand, so it’s moving the C-Class upmarket. The redesigned 2022 Mercedes-Benz C-Class sedan borrows design elements from the automaker’s flagship S-Class to entice new car buyers on a budget who still want the most Mercedes for their money.

The C-Class competes against a formidable array of small sports sedans. Like the Mercedes, the Audi A4, BMW 3 Series, Lexus IS, and Volvo S60 are fixtures in this segment, with nameplates that date back at least two decades. The Acura TLX, Cadillac CT4, and Infiniti Q50 are newer names that build on their respective brands’ experience in the segment. The Genesis G70 is a relative newcomer from a recently launched brand that’s already managed to impress.

The all-new C-Class launches in C300 sedan form with standard rear-wheel drive (RWD), optional 4Matic all-wheel drive (AWD), and Premium, Exclusive, and Pinnacle trim levels. Our test car was a C300 4Matic in the top Pinnacle trim. An AMG C43 performance model is also on the way, but it’s not expected to hit showrooms until after the C300, which arrives at dealerships later this spring.

BMW offers the 2026 X3 in two flavors: 30 xDrive and M50. The latter is tuned for performance, but the base X3 30 xDrive is so good that you might be happy trading the M50’s outright speed and sheer capability for significant savings. BMW redesigned this compact luxury crossover in 2025, and the only tweaks for 2026 make the base model look and feel a little more upscale inside.

Verdict: For this review, we evaluated the BMW X3 M50. It was terrific, but with a sticker price more than $15,000 higher than the rewarding X3 30 xDrive, it’s hard to justify the extra money.