Autoblog and Yahoo may earn commission from links in this article.Since Mercedes-Benz officially adopted the E-Class moniker around 33 years ago, the midsize luxury sedan has been embroiled in a fierce rivalry with the BMW 5 Series. Of course, this executive sedan battle goes back even further, before the E-Class nameplate was introduced. Both cars are still around in 2026, still fresh after being completely revamped in recent years. They each start with base four-cylinder engines and progress to potent AMG/M variants, but the sweet spot in the lineups are the six-cylinder BMW 540i and Mercedes-Benz E450. Closely matched in price, performance, and luxury, which sedan has the edge in 2026?2027 BMW 540i Vs. 2027 Mercedes E450: Design, Dimensions, and Execution2027 BMW 540iBMWView the 4 images of this gallery on the original articleAdvertisementAdvertisementCar design is subjective, but I feel the BMW has taken a step back versus the previous 5 Series, while the Mercedes-Benz has evolved more gracefully. The current G60 BMW 5 Series is not dull by any means, but the lines lack the cohesion of its G30 predecessor. The grille looks oddly large between the downsized headlights, the M Sport Package appears overly aggressive, and it lacks the athletic, lean stance of previous 5 Series sedans. It's striking, but not necessarily for the right reasons.The current E-Class has a classier and more sophisticated look. It's instantly identifiable as a Mercedes executive sedan, from the three-pointed star on the nose to the elegantly sloping roofline. If there is a criticism, it's that the E-Class can be too easily confused with a C-Class or S-Class. Overall, though, it's easier to warm up to initially.BMW 540iMercedes-Benz E450Length199.2 inches194.9 inchesWheelbase117.9 inches116.6 inchesWidth (excluding mirrors)74.8 inches74 inchesHeight59.6 inches57.9 inchesThe BMW is larger in all key dimensions, so the fact that it looks huge is not merely an illusion. The 4.3-inch difference in length is especially noticeable.Mercedes E450 Vs. BMW 540i: Performance and EfficiencyBMW 5 SeriesBMWView the 2 images of this gallery on the original articleAdvertisementAdvertisementIn these trims, both cars have turbocharged 3.0-liter inline-six engines with mild hybrid systems. Given the similar powertrains, it should come as no surprise that on-paper performance is remarkably similar.BMW 540iMercedes-Benz E450Engine3.0L I6 Turbo3.0L I6 TurboHorsepower375 hp375 hpTorque398 lb-ft369 lb-ftTransmission8-speed auto9-speed autoDrivetrainAWDAWD0-60 mph4.4 seconds4.4 secondsEPA rating (city/highway/combined)26/32/28 mpg22/31/25 mpgThe BMW has more torque and the Merc's automatic transmission has an extra gear, but both will reach 60 mph in exactly the same time. In our drive of the E450, we loved its smooth engine, effortless acceleration, and smooth ride, although the transmission could be a tad faster to downshift. The car does not feel as large as its dimensions suggest, thanks in part to rear-wheel steering. It's also available with Merc's Airmatic air suspension, which provides a distinctly serene ride.We haven't driven the 540i, but its B58 inline-six is a peach in every other BMW model it's found in. We did drive the four-cylinder 530i, which we found to have a forgiving ride, responsive handling, and a quick-shifting transmission. These are two closely matched sedans, but the BMW does pull ahead in the economy stakes, where it achieves 3 mpg more on the combined cycle.AdvertisementAdvertisementRelated: BMW vs Mercedes Reliability: The Winner Isn't Even CloseFeatures and PracticalityBMW 5 SeriesBMWView the 2 images of this gallery on the original articleAs mid-range trims, one can fully expect these cars to come with many features as standard, and they generally don't disappoint. BMW 540iMercedes-Benz E450Wheels19-inch alloys18-inch alloysPower moonroofSS (panorama roof)UpholsteryPerforated VeganzaMB-TexPower front seats with heatingSSVentilated front seatsOOHeated rear seatsOOSound systemHarman KardonFrontBass systemDual-zone automatic climate controlSSParking sensorsSSAutomatic parking assistantSSSurround-view camera systemOSDigital gauge clusterS (12.3 inches)S (12.3 inches)Touchscreen14.9 inches14.4 inchesBoth cars are comparably specified and can be equipped with a massive selection of extras, from nicer upholstery to sporty styling packages, advanced driver-assistance systems, and much more.The E-Class interior is visually more striking and its material quality better than the BMW's. It also offers an optional passenger-side display. The BMW's cabin has a sporty look and still offers a physical rotary dial, so you don't need to rely on the touchscreen entirely. Both cars sport dramatic ambient interior lighting, but we do miss the days when a luxurious atmosphere was created by warm wood finishes rather than elaborate lighting and big screens.AdvertisementAdvertisementBoth cars are spacious for passengers front and rear, but the BMW's trunk is larger at 18.4 cubic feet. The Merc's trunk measures 12.7 cubic feet.Pricing2026 BMW 5 SeriesBMWView the 2 images of this gallery on the original articleFor the 2027 model year, the BMW 540i is priced at $67,700 and the Mercedes-Benz E450 starts at $73,700. A $6,000 price difference is quite large for two cars sharing such similar performance and luxury characteristics. For $3,800, the 540i can be equipped with the Executive Package, which adds a surround-view camera, Sky Lounge Panoramic Roof, head-up display, heated steering wheel, and more—while still costing less than the Mercedes overall. The BMW's $1,350 Luxury Seating Package can also be added without exceeding the E450's base price.The E450 comes with a large number of standalone options and packages. The $3,200 Airmatic Package adds another layer of adjustability and refinement to the car, while Merc bundles an array of driver-assistance gear into its $1,950 Driver Assistance Package.Final VerdictBMW 540iBMWView the 2 images of this gallery on the original articleAdvertisementAdvertisementDespite its higher base price, our choice is the Mercedes-Benz E450. Although the cars are closely matched on paper, the Merc's available air suspension, gorgeous interior, and cleaner lines give it the edge. It feels like the more special luxury car between these two. If you have a big budget, it can also be specified to near S-Class levels.The BMW 540i has a brilliant powertrain, a bigger trunk, and is more efficient. But the interior does not feel as inviting as the previous-generation 5 Series and the exterior design is hard to love. It's still a fantastic car under the skin, but it's not as memorable as older 5 Series models.In the midsize luxury sedan segment, the E-Class is currently one of the best cars you can buy.Related: BMW M440i Vs. Mercedes-AMG CLE 53: Same Speed, Very Different PriceAdvertisementAdvertisementThis story was originally published by Autoblog on Aug 22, 2026, where it first appeared in the Features section. Add Autoblog as a Preferred Source by clicking here.