Ok, my asbestos suit is back from the cleaners, so here goes... Warning: the following represents my perspective on the two cars, it's based on all the factual information I could find (less any discrepancies for transcription error ;-)...) My objective is to help you objectively compare these cars - either is a cool car! I'm not trying to pick a fight, start a flame war, make fun of anybody's Mother, etc. If you own either car, and you are happy with it great! I put my $1000 down on a ML a while ago and was following all the info I could find on the internet. I've owned Volvos for the past few years, and before that drove Honda/Toyota sedans, a Jeep Grand Cherokee, and a Miata. I've become quite accustomed to 1) cars that run and run, and 2) a high level of quality/safety/comfort. I knew going in that I was buying a $40K car, not a G-Wagon. I need a car I can drive 7 days a week on the street. My family goes camping in the rugged mountains about 6 times a year. I needed access to un-maintained access roads and light offroad. To be clear here, I needed something rugged, but I'm not kidding myself into trying to drive the Rubicon (sp?) trail. I drive in hideous rain and occasional snow/slush to. Now, doing the basic math, it was clear I didn't need a "real" 4x4 - the only reasonably priced one I liked was the now unavailable Land Rover Defender 90 (of which I found a perfect candidate the day I bought my car, and still couldn't justify the 355 days I'd be driving in discomfort). About a month ago I broke down and test drove the RX300 after being a total ML320 bigot. I was so confused after driving it that I was walking into walls - I had convinced myself that there wasn't another car on the planet that could compete with the ML320)! It was a totally pleasurable drive! After researching the ML for so long, I just had to put the new car purchase out of my mind for a few days so I could get settled down enough to make intelligent decisions again. I waited a while and calmly test drove both vehicles again. The ride on the Lexus was superior, as was the fit and finish. At this point I was back to "it could go either way". I then started comparing at a deeper level. I've been following the ML320 list server for a good 3 months solid and read all the history before that. I went and made several visits to the two Mercedes dealers here in Phoenix and found their treatment of me to be somewhat "blah". I talked to all the other ML320 owners I could find in town and they echoed the sentiment - the MB dealer would be "just OK" as was their service department. To be quite honest, I was extremely worried about the number of issues the ML320 has had/is having. I'd accumulated about 30 emails with issues I was "assuming" I'd be facing with multiple trips to the dealership - the one who I'd have to beg to get things fixed, battle with whether the issues were covered under warranty, etc. Fact is, the ML320 is a poor example of "buy it and forget it" quality - there's no argument on that. I initially felt that the innovation in the 4EPS/ESP/etc. was enough to offset all the little stuff constantly breaking. I still say that both cars are long-term cars that will prove very dependable - there'll be a significant difference in the actual number of visits to the service department (unquestionable advantage of Lexus over Mercedes). I visited the Lexus dealership the same way. It was an excellent experience all the way around. I then checked with my friends that owned Lexus products (one already had a RX300), and again, perfection. To make sure I wasn't dreaming, I checked the internet, and sure enough, Lexus consistently gets better marks that Mercedes for customer satisfaction and general quality (both in product and services). Go to the list server archive and read every single item. Go to www.edmunds.com and hit the SUV section of Town Hall. There's an extensive archive there on the RX300. Definitely read the article in "Off Road" that compares both. And hit all the articles via the search engines. As you might guess, I bought the RX300. The final key points to my decision were: ML320: * Pluses 1. 4ETS/ESP 2. More storage space in the back 3. 3 individual split seats in back 4. Free car washes any time (that's my dealership, your mileage may vary) 5. Doors automatically lock at 10MPH (if dealer turns on option) 6. Modest mini-van look, doesn't stick out like a sore thumb if you like that 7. Stiffer ride if you prefer that 8. Higher towing capacity * Minuses 1. Large number of quality control issues - see the ML320 archives for details on 30 or so issues (see archives) 2. Long waiting list to get vehicle 3. Looks like a mini-van, very blah outward appearance if you don't like that 4. Dealer/service department is average 5. Dealer network not prepared to handle volume of customers 6. Mercedes has reputation as high maintenance at premium price (unlike Toyota/Honda, like Volvo, Jaguar, etc) 7. No guarantee on loaner car when getting service 8. Underpowered, V8 is $6K more - at that price, I can get a Range Rover! 9. Manual support on hood, should be pneumatic 10. Lots of little "cost-cutting" compromises here and there (plastic everywhere, too much fake leather (vinyl) 11. Too many options controlled by onboard computer are not turned on automatically and several, they won't turn on (e.g. door locks, adjusting seats, fog lights, daytime running lights, etc.) 12. Car represents entry-level price point in Mercedes line RX300: * Pluses 1. CHEAPER!!! Comparable configurations were about $5K different. 2. My insurance from USAA was almost $500/year less 3. I got the make/model/features/color I wanted - virtually any combination was available within 30 days 4. Better mileage 5. Excellent quality 6. Excellent dealer/service department 7. Dealer network prepared to handle volume of customers 8. Significantly better fit and finish (examples leather everywhere, real wood everywhere, metal in sunroof mount arms, etc). 9. Guaranteed loaner car when getting service 10. Better premium stereo 11. Better tires 12. Full size spare tire, easy access, not under car (imagine how dirty it'll be the first time you get a flat) 13. Sportier look, stands out more in a crowd if you like that 14. Peppier feel behind the wheel 15. Automatic climate control 16. Pneumatic hood support 17. Back seats sit totally flat when you put them down 18. More room in the passenger areas (front and back) 19. Automatic headlights 20. Fog lights work as shipped 21. Remote opens windows and sunroof without starting the car 22. Easier to read dash, superior trip computer features 23. Car represents above average price point in Lexus line 24. Softer ride if you prefer that 25. One-touch up/down on all windows and sunroof 26. All windows and roof can be open from a distance with remote * Minuses 1. Wider turning radius 2. No low gear, handy for extreme off-road situations 3. Minor difference in road clearance 4. Tires screech a bit when I goose it 5. Doors don't lock automatically when you hit 10MPH 6. Lights look a bit too space-age if you don't like that 7. Wheel wells detract from space in back of car 8. Lower towing capacity Buying cars is such a subjective process. Initially, I just liked the MB so much that I wasn't being objective at all. I'll admit that a big part of it was the fact that MB has always had great, high-end, "I have arrived" reputation and their marketing is still solid (kinda like a Rolex watch, but does it really keep better time than, say a Tag Heuer?). Lexus has a solid image too, but not the same in most folk's eyes. In the case of a luxury SUV today, there are several possibilities. The list can be narrowed to the ML320 and the RX300 quite easily, but beyond that, it's tougher. I was originally so intent on getting the ML320 that I had turned into a ML320 bigot! At that point I realized I was ignoring a number of SIGNIFICANT issues/compromises. At this price, it should be practically free of flaws, especially after being in production as long as it has. Problem is they've been trying to meet higher production rather than fixing the issues. I finally made a clearer analysis based on my needs and came up with the right car for me. I could have bought either, but bought the RX300. As you can tell by the length of this email, I still consider plunking down $40K a significant investment. I work hard for my money and want to make sure I can get as much information/perspective as possible. Hope this helps. Last point is if you're needing a hard-core offroad vehicle, don't buy either! Seriously, if you want to go out every couple of weeks and "climb rope" - you'll destroy either of these vehicles. Get a Grand Cherokee or the new Dodge Durango. Better yet, get a used Defender or short wheelbase Land Cruiser. I'm going up to the mountains next weekend, so if you're interested you can look at some pics I'll post afterward to show what the RX300 can do off-road. -- Dirk Leas VP of Software Engineering Devlin Consulting, Inc. Phoenix, AZ (602) 256-6542, office (602) 770-0042, cellular Solutions for the real world... More on why the RX300 is significantly cheaper than the ML320: Lexus is giving a $3500 discount from sticker, and for the same features the sticker was a little over $1500 less than the ML. There's also a pretty significant difference in the interior levels on the base models - I'd guess a larger number of folks would be happy with the base RX300, where most I've heard from gravitate toward M1 in the ML line. If you're already a Lexus customer, there's another $1000 discount. They're clearly being very aggressive in setting their prices. I'd assume the state of the Asian economy/stock market also help with the current pricing.