Mercedes-Benz S350

The BMW 5-series has been the long-running leader in the executive sector, but has come under sustained – and many argue successful – attack from the new Mercedes-Benz E-class. But the S-class regularly seems to sweep all before it in a category where the difference between first and nowhere are often degrees of perfection.

And Mercedes-Benz raised the bar again by revamping the S-class last summer with discrete new lustre to the headlights, a new tail light design and a more prominent grille (how much more prominent can you be driving an S-class?).

Inside, virtually all areas of the car are as excellent as you would expect. The interior, particularly the fascia, has been tidied up and many of the buttons strewn across the face of the old model have been re-engineered into tidier groups. Where I start to screw my face in consternation though, is the engine, but not through any doubts of its ability.

The 3.7-litre unit in the S350 is more than half-a-litre bigger in total volume than the one it replaces. It churns out a healthy 245bhp and 258lb-ft of torque in the mid-range, which is more performance than you would ever really need in a car as big and relaxed as this, as it will do 0-62mph in 7.6 seconds and a top speed of 153mph. It sounds great under hard acceleration, shrinks away to nothing when cruising and is as smooth as Pierce Brosnan in the mood for romance with a gearbox that changes ratios with delicate subtlety.

The steering is light at slow speeds and makes this car surprisingly easy to wield around a car parking space.

It has CO2 emissions of 266g/km and does 25.4 mpg. But why have it? The problem is the S350 is no more remarkable than the already remarkable S320CDI. If the owner will only consider petrol, then only when the engines get seriously legendary like the V8 500 or the insane bi-turbo V12 600 does the petrol route score a convincing win over the diesel.

The S320CDI emits only 204g/km of CO2, which for a car of its weight and engine displacement is quite a feat, and puts it in the 27% benefit-in-kind band this year, while the 350 languishes in the 35% band.

As a result, a 40% tax-payer will pay nearly £1,800 a more for the S350. And the diesel does 36.7mpg on the combined cycle. But despite the fact that the S350 has its thunder stolen by another model in its own range, it is still a fine car. Get it rolling and long journeys are a stroll. In fact they are an interesting social experiment. Drive an S350 down a motorway and the traffic will dive aside in deference, metaphorically doffing caps as you go.

Who says the class culture is dead?

My only small concern – and it's not the first time on a Mercedes-Benz – would be the hydraulic brakes, which are essentially brake-by-wire.

Very clever, no doubt, as there is no mechanical linkage between pedal and wheels, and extremely powerful, but they have very little feel and tend to bite suddenly, particularly at low speeds.

At motorway speeds they feel much more progressive, in keeping with the S350's ability to travel fast effortlessly.

Approach a high speed motorway bend with velocity and the large mass settles over its AirMATIC suspension and huge wheels and corners imperiously. It all adds up to a wonderful all-round luxury package.

Mercedes-Benz S350

Delivered price, standard car (P11D value): £46,630 CO2 emissions (g/km): 266
BIK % of P11D in 2003/04: 35%
Graduated VED rate: £155
Insurance group: 18
Combined mpg: 25.4
CAP Monitor residual value: £19,850/40%
Depreciation (48.81 pence per mile x 60,000): £29,286
Maintenance (5.16 pence per mile x 60,000): £3,096
Fuel (14.97 pence per mile x 60,000): £8,982
Wholelife cost (68.94 pence per mile x 60,000): £41,364
Typical contract hire rate: £1,010.85 per month