Mercedes produces some terrific transportation. Unfortunately, those on a budget often have to decide between impressing the neighbors and, say, feeding the children. My kids tend to get grouchy when they don’t get their gruel so I go with the latter. Since you may choose differently, there’s hope for those who aspire to the three-pointed star with hungry offspring. Mercedes has a new C-Class. 

The C has been around for awhile but never really gained the kind of respect bestowed on its nemesis, the BMW 3 Series. Competition is fierce in this category and it’s only getting tougher. In addition to the Bimmer there’s the Audi A4, Infiniti G35, Lexus IS, Acura TL and the new Cadillac CTS (though the American sort of slots between the C and E Class). Mercedes, beleaguered with quality issues lately, has spent some extra time massaging the details here and offer up a tempting machine in the new C-Class. Starting at $32 grand, the C300 Sport I’m driving is improved in every way from the outgoing model. My tester is optioned up to the price of $37,500.

The folks in Stuttgart have tailored some smart-looking sheet metal here. With a bold AMG-style grille featuring a large star front and center, there’s no mistaking that this car is a Mercedes. The body isn’t the only part of the car that’s clean and purposeful; the undercarriage is designed with superior aerodynamics in mind. Get up close and you’ll find nice detail in the tail amps. The C doesn’t look like a budget model, it gets an "A" in design.

It may not be easy to catch a glimpse of though. The C300 is quick when the right foot hits the go pedal. With a 0-60 time of around seven seconds, freeway merging isn’t a problem. Those who need to knock a second off that figure can upgrade to the C350, priced at $37,275. The 300 gets a 226 horse V-6; 350s pony up (pun intended) another 42 hp. I’m seeing a 21-mile-per-gallon average in mixed driving, the same as the 2008 EPA rating.

A new six-speed manual is standard in the 300. The tranny installed in my tester is a seven-speeds automatic (yes, seven speeds) complete with Touch Shift manual shift control. It’s optional in the 300, standard in the 350. Unlike most transmissions, this one will skip up to three gear ratios when it downshifts, going directly from seventh to fifth, for example, or even sixth to second. 

The C might be the smallest sedan Mercedes sells in America, but it’s comfortable and relatively quiet. The tilt and telescoping steering wheel has a nice heft to it. Even better, the new C-Class stands a chance of staying with a BMW 3 Series on a windy road. Of course you probably want to know which is better. My opinion is that the 3 has the edge. Realistically, on public roads, trouble with the law is inevitable if you’re trying to find out which one is more competent in the corners. Few people push their cars this hard unless it’s on a track, so in everyday use it’s a bit of a draw. I’m assured that Agility Control sport suspension automatically senses and adjusts to road conditions and driving styles but if it does it’s very transparent to the driver. In short, handling is a big change from the outgoing model

Also improved is what occupants see the most of. The instrument panel looks appropriately Mercedes-esque. Switchgear is silky smooth; the navigation screen raises dramatically from the center stack. Optional wood trim would appear richer than the Sport’s aluminum décor that leave me a little cold. Also, I find the area that the front seat passenger faces on the plain side. 

The back seat is comfortable for two. Three will fit but the center passenger has to deal with the drive shaft tunnel. Fortunately the trunk can be expanded by dropping the split seat backs forward. There are remote releases in the trunk.

Of course the Toilet Paper Trunk Test is always done with the seats up. Here the C-Class falls a little short, swallowing five jumbo warehouse packs. That’s one less than average. The baby Benz doesn’t use space-saving hinges and that makes a difference.

C-Class gets the same user interface used in more expensive Mercedes products. Once a driver gets used to the aluminum wheel and two corresponding buttons that act like a computer mouse, operation is fine. I’d advise new owners to take a half hour to play with it before turning, nudging and clicking the menus in stop and go traffic. Unfortunately, the controller is not the hefty hunk supplied in an S-Class. Personally, I’d pay an extra $100 to have that terrific chunk of metal in my right hand every day.

Along the same lines, first time Mercedes drivers will confuse the cruise control stalk for the turn signal until they get used to it. Finally, the center airbag cover that operates the horn extends all the way to the rim of the steering wheel. It makes it easy to honk the horn by mistake while turning the wheel quickly. 

Overall the engineers at Mercedes have done a nice job of putting essence of E and S-Class into a smaller more affordable package. For dedicated Consumer Reports and J.D. Powers readers, Mercedes hints in their ads that glitches from the last few years have been addressed. Those who require uber performance will want to wait for the C 63 AMG with 336 hp and a 0-60 time of 4.5 seconds. The C300 is worth a look if you’re shopping for a premium brand and have children who insist on being clothed and fed.