When it comes to compact luxury sedans, three names dominate the conversation: Audi, BMW, and Mercedes-Benz. Each brand brings its own blend of performance, refinement, and prestige to the table, making the competition fierce for buyers seeking a premium driving experience in a smaller package.

These sedans may be compact in size, but they’re big on features, offering muscular engines, upscale interiors, advanced tech, and the kind of ride quality expected from luxury brands. Whether you prioritize sharp handling, interior comfort, or cutting-edge innovation, each contender brings something unique to the segment.

With so much overlap in pricing and features, choosing the right one can be tricky. That’s why we’ve compared the latest versions of each to help you decide which compact luxury sedan best fits your lifestyle and priorities. Here’s how Audi, BMW, and Mercedes stack up in this head-to-head showdown.

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BMW’s 3-Series Is the Most Affordable Option In the Segment

If you’re looking for a sedan that offers a good balance between comfort and performance, chances are you’re exploring the compact segment. BMW, Mercedes-Benz, and Audi have traditionally dominated this segment and their current offerings prove that they are still heavy hitters. In terms of pricing, the 3-Series is the most affordable, but does that mean it is the best choice?

2025 Audi A5/S5

Audi has continued to streamline their lineup. This has included ditching the A4 as well as the A5 coupe and convertible. In their place, the brand now delivers the new A5 sedan. It is bigger, more comfortable, and packed with modern technology. However, this does mean that stepping up from the subcompact A3 demands a lot more money.

This change is a bit awkward for Audi. The A4 was more affordable than the 3-Series or the C-Class, but now Audi’s compact offering is the most expensive of the three. It is, however, larger than it competitors, delivering a better experience for those in the back seats.

2025 BMW 3-Series

If you’re looking for a compact sedan from the big three German automakers, the 3-Series is now the most affordable option that you have. It is offered either with a four-cylinder engine in the 330i or an inline-six in the M340i. While the latter is certainly impressive, the 330i will more than satisfy most drivers.

The 3-Series is the perfect example of how a luxury compact sedan should walk the line between comfort and sportiness. It is smooth and quiet when cruising yet quickly transforms when you put your foot to the floor.

2025 Mercedes-Benz C-Class

Where the Audi A5 and BMW 3-Series aim for some kind of balance between sportiness and comfort, the C 300 instead aims to deliver the most luxurious experience possible. If you do want something more raucous, the AMG-tuned C43 is much more powerful and agile.

There are three trims to choose from when it comes to the C 300, with each increasing interior luxury. We think that the Exclusive trim offers the best value for money. Note that Mercedes allows you to pick and choose features in their compact sedan, viewing trims more as equipment packages.

For those with $80,000+ to spend, Mercedes also offers the C63 S. It hasn’t been all that popular, though, with the German brand ditching the V-8 for an F1-inspired inline-four.

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In Terms of Luxury, It’s Always Hard To Beat Mercedes-Benz

All three of these German brands are renowned for their high-quality interiors. While the 3-Series and the new A5 can’t really be looked down upon, Mercedes-Benz has always set the standard when it comes to plush cabins and the C-Class is no exception.

Audi A5 Interior Dimensions and Comfort

In terms of space on the inside, the new A5 takes the cake. Those relegated to the back seats will definitely feel more comfortable in the Audi than they would in other compact sedans. The new A5 is also technically a hatchback, which means that it delivers a more spacious cargo area than its competitors by a long shot.

The A5 has always set itself apart by delivering a contemporary cabin that is loaded with technology, offering a long list of standard features. The new model seems to continue this trend, with a huge amount of digital real estate. You also don’t have to climb the trim ladder far to find the most desirable features.

BMW 3-Series Interior Dimensions and Comfort

While not the largest, the 3-Series does offer ample interior room. Those in the back may not have as much legroom as they would in the A5, but the margin is small. For a traditional sedan, the 3-Series also has a pretty large cargo area, outdoing many of its competitors.

The 3-Series looks for a middle ground between contemporary styling and iconography. A large single pane of glass sits atop the dashboard housing the infotainment system and digital gauge display. Everything else feels like it leans into BMW tradition. While it may not be as flashy, the quality of the materials in this sedan speaks for itself.

Mercedes C-Class Interior Dimensions and Comfort

The C-Class offers similar levels of room for passengers as the A5 sedan, with plenty of space to stretch your legs. Admittedly, the difference in legroom between these three cars isn’t alot. However, the Mercedes has one of the smallest trunks in this segment, which is one of the few places it falls short.

Mirroring Merc’s flagship sedan, the S-Class, the C-Class delivers an absurdly comfortable and connected interior. If technology is something that you value, it’s incredibly hard to get better than this compact sedan. While the BMW and Audi are fantastic, Mercedes wins the medal for outright opulence.

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In Terms of Sportiness, There Can Only Be One King

The compact luxury sedan segment is filled with options that deliver thrills, making it hard to truly stand out. Audi, Mercedes, and BMW remain top players in this area, balancing smooth performance with power and agility. However, of our three options there is one that clearly beats the rest.

Audi A5/S5 Performance Specifications

Audi’s A5 comes with a single powertrain option, a mild-hybrid turbocharged inline-four. Audi estimates that it will get from zero to 60 miles per hour in 5.6 seconds, but we think that they’re being a little conservative here. If you’re after more power, the S5 comes with a raucous turbocharged V-6 instead.

Audi says that they’ve stiffened up the suspension on the new A5, which should result in a sportier drive. Adaptive dampers and a torque-vectoring rear differential are also available. The older model leaned a little more towards comfort and this switch could make it even more competitive.

BMW 3-Series Performance Specifications

You can get BMW’s compact sedan as either a 330i or an M340i. The former comes with a turbocharged four-cylinder engine and the latter with the brand’s iconic inline-six. Both come with a smooth-shifting automatic transmission. Rear-wheel drive is standard on both models with all-wheel drive being optional.

The 3-Series is perhaps one of the most rewarding sedans that you can drive. Its finely-tuned chassis and responsive steering make it a joy around twisty sections of road. While the M340i is more focused, the 330i is also more lively than you’d expect. Tone it down and the sedan knows how to return to being a smooth, luxurious cruiser.

Mercedes-Benz C-Class Performance Specifications

The base C 300 comes with a turbocharged inline-four. Surprisingly, so does the AMG-tuned C43. The base model comes standard with rear-wheel drive, but the C43 gets all-wheel drive from the word go. The AMG machine makes use of a turbocharger that comes straight from the brand’s F1 racing-engine tech.

The C 300 is definitely nimble, but it demonstrates a lack of steering feel that often dulls the fun of flitting along back roads. Surprisingly, the ride quality also isn’t as good as you would expect. The C43 is pretty quick and exceptionally agile, but it feels like an example of how a company can engineer the enjoyment out of a sports sedan.

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Our Pick: The BMW 3-Series is Still the Best Compact Sports Sedan

All three cars measure up pretty well and, truth be told, you’re not going to drive away disappointed regardless of which model you were to pick. However, a compact luxury sedan is meant to be quick, comfortable, and fun to drive, and we think that the 3-Series best ticks these boxes.

Final Thoughts

The new A5 has certainly shaken things up in the segment, but as much as things change, they also stay the same. All three cars have their pros and cons. If you’re looking for the car with the most luxurious interior, then you’ll be happiest in the C-Class. If you want sportiness, then the 3-Series is a no-brainer. If you want a good mix of both, the Audi is there for you.

The 3-Series pulls ahead in our minds due to a couple of factors. The first of these factors is how rewarding it is to drive. BMW have built their compact sedan to be a car that you look forward to driving every day. It is simply more fun than its rivals. The Merc feels like a machine that does everything for you and the A5 feels like it’s holding back and coddling you a little.

Another factor is price. BMW gives you a ton of bang-for-your-buck. The 330i is an overachiever and costs thousands less than the A5 or the C 300. Hop up to the M340i and the story stays the same, with the BMW outperforming its rivals for less money.