There really is no comparison other than they both cost the same and historically Lexus is always compared to Mercedes. I believe they are different types of vehicles. A Lexus RX300 is better compared to a Volvo V70 XC AWD wagon. In which case the Volvo wins hands down IMHO. The only difference is the RX300 has a stronger engine (but it is not faster), a higher seating position, and more ground clearance which everyone keeps saying isn't important since 99% of owners will not take either of these cars off road. The other 1% who do take them off road will get stuck:^) The Volvo and RX300 cost about the same, have similar AWD setups, have virtually the same amount of cargo space, virtually the same tow capacity, are both available in front wheel drive if you so desire. Head/Sholder/Leg/Hip room are all virtually the same to exactly the same. (Actually Lexus has about an inch more head room due to it's greater height.) The Volvo is 6 inches longer, the Lexus is 2 inches wider, and the Lexus is 150lbs heavier. So, as far as I can tell, and correct me if I'm wrong here, is the only thing keeping the RX300 from being called a wagon, is 8 inches of height and 3 inches of ground clearance? We're getting real liberal with this "SUV" term:^)