Exactly my assessment when I shopped (although I looked at 2015 328's).

 

I just test drove the RWD versions of these cars back to back. My feeling is that for anyone using the car as a daily driver, the C300 is a much better choice. Everyone says the interior is much better in the MB. I didn't think it would make that much difference to me, but it did. The BMW doesn't feel as nice to be in. The Mercedes gets all the little things better. More comfortable seats, better steering wheel (seriously, the same hard plastic steering wheel in a Honda Accord is in a BMW that lists for 47k?), better turn signal stalk. All the little things you actually interact with.

I expected that once I was actually driving the BMW, it would catch up to the Mercedes and shine in the area where it's supposed to exceed every other car in the class. It was fine, but it honestly didn't make me smile any more than the C. Felt worse than the C in comfort mode--the ride was bouncier and potholes came through more, but the steering was lighter and vaguer, so there was no comfort/sporty trade off. It was just worse, IMO. Sport mode firmed up the steering, but it still didn't feel light years different. The only time I could really tell a difference was in taking an on ramp at full throttle. That was fun, but that's not going to determine whether or not I buy a car that I have to live with on the highway, in traffic, etc., etc. On what I was able to test of curvy roads, the Mercedes felt almost if not identically competent, and on the highway and in stop and go traffic, the Mercedes was the clear winner. Last year, I had a Cadillac ATS rental for three days. That was a fantastically fun to drive car. If BMWs still drove like that, it would be a harder decision. But I guess it's really true that the base models have been softened up, and you get much more for your money in the Benz. As for the ATS...I would consider it if it didn't look so garish and if it had a better reliability history.

 

Drives nice but Macan S is overall better package, better engine, handling and interior. But also costs more due to many typical Porsche options.

I didn't quite like F-Pace's interior. The lower bit are low grade plastic that's hard and easy to scratch, something you would find in a Kia. Also the infotainment system is not great although it's better than MB's Command.

Doesn't matter. Jag is going to sell tons.

Back to OP, BMW only got handling going for it. Nothing else. If you don't take on-ramp like a maniac, C300 is better overall.

 

C300 still handles well, too. Much better than previous generations. I think to get benefit out of 328i handling this generation, you need to truly be an aggressive driver. The difference isn't enough for the BMW to be better in everyday maneuvers. I drove an ATS earlier this year, and THAT car feels much better than either an MB or a BMW no matter what it's doing. BMW isn't that much better this time.

MB also has better steering.

 

We have 2015 328i x drive and C300 4 matic. Wife loved her BMW until I got the C. The 328 has a much more dated interior. It feels sportier, if thats your thing, but it also doesn't feel as... nice, for lack of a better word. The upholstery isn't as nice. The layout of the buttons isn't as easy to use. It's a louder ride. It feels a bit faster to me. But it feels of lesser quality. (It may or may not be, but it feels like it.)

The current C300 really stepped up the quality of the interior. I didn't used to like the C, it felt cheap inside. The 2015 changed that. It's much nicer inside, and I like the exterior look as well.

If you owned the BMW, you could be very happy, if you never drove the C300.

 

Can't help myself, but I have to chime in. I don't have "deep pockets," but early in my retirement (16 years ago) I was able to get a new 2002 BMW 325i. Now, this was a car you had fun driving as the car was extremely responsive to your every move and you always knew where you were on the rode. Of course, to achieve this kind of controlled drive, one sacrificed a "nice, soft and quite drive for something less than teeth-jarring drive," but it was well worth it.

In 2005, I was wanting a convertible while keeping the 325. Looked at a lot of cars and could help but get another BMW, a 2005 Z4. There just weren't any convertibles out there that gave me the drive of a BMW...and were in my price range. So the 325 became my wife's car and the Z4 was all mine.

By 2006, BMW had retuned there drives to sell better to the mass public. The E46 was gone and in its place was a good car, but not one that handled as well as the its predecessor. Because i loved these cars and took great car of them, the first one that I sold was the 325 in 2013. I didn't want another 325 as everyone else was driving one...and of course it no longer was the same drive as my 325. After reading how Cadillac had very successfully modeled their new ATS after the E46, I got a 2013 ATS. Still have the ATS and plan on keeping it for another 4 years. This car is my E46 BMW reincarnate, but a lot better in all ways: Much more luxurious, faster, and handles unbelievably well. Yeah, there were quite a few stops at the dealership for servicing of things here and there, as one might expect from a first year model, but i have overlooked that as this car is a real honey.

So after getting a little long in the tooth and having had many hip and knee joint surgeries, which made getting in and out of the 11 year old Z4, it was time to find a replacement. I still had the BMW controlled ride with the ATS, and my new car was to be a good driving car, a coupe (I like smaller cars,) easier to get in and out of, RWD, and very cool looking inside and outside. Another BMW (428) just was out of the question; although, it still had the best engine and tranny in its class, its looks inside and outside were dated. And again, everyone was driving a 328...not a 428, but close enough. The 2017 C-300 coupe was the car for me!

To my eyes, the coupe looked so stunning (in and out,) it became my first consideration. In my overall assessment of the coupe, it certainly wasn't going to be a "me too car" and although not as fast as the 428, it certainly would drive well enough but with a lot more luxury and style. And remember, I still have the ATS for kicks.

BTW, to ensure that it wouldn't look like all the other C-300 coupes on the road, at the end of June I factory ordered mine in Lunar Blue (saddle brown interior)...should be getting it mid-August as it is coming into port in a few days. Interestingly, just about all the C-300 initial stockings were either white, black, or some shade of grey.

To say I am quite excited and can't wait for delivery, is an extreme understatement

 

I've driven the E46 and the ATS and thought they were both incredible cars. Made me laugh out loud. I'm curious if you drove the current 328i or 428i. Supposedly the 4 is a bit better, but the 3 at least shows what significant changes they've made. I'm amused when I read BMW fanboys denigrating the C300 sedan on their forum and then defending the base model 320i as an "honest" car--it feels no different or worse than the C as far as chassis or steering in normal driving.

 

I have a 2015 C300 and recently added a 2016 328d Sportwagon because we needed extra space. Given the choice, I would have gone with a C300 wagon, without question.

The C300's interior is a generation ahead. There are lots of little touches that make the BMW feel stale. Its interior wouldn't be out of place in the early 2000s. After a couple of months, I definitely appreciate the 3's sporty steering feel more, but the diesel is a lot slower off the line than the C300. The 328d kills on mileage and load space, but that's about it. Like everyone else, I miss BMW's hydraulic steering, and MB is catching up with the W205.

The iDrive is also better than COMAND, but not by much, and at the cost of workmanlike graphics. The leather seats feel more like pleather than the MB-Tex does. They also give me sciatica early on because of how the bolsters put pressure on my right thigh (I'm not overweight). The seat also doesn't go as far back, which is also a hassle compared to the C300 (I'm 6'3") and adds pressure on the thigh. The autonomous emergency braking is a joke compared to the C300 as well.

One big upside to the BMW is price: my C300's MSRP is $46k and the 328d's MSRP is $60k, but I'm only paying $30 extra per month, with multiple security deposits (which MB is massively inconsistent about) and no cap cost reduction. The Bimmer was a company car with 3k miles, so I got $10k off MSRP despite no blemishes, plus the money factor was very attractive. MB Financial Services has really dropped the ball on leasing incentives compared to BMW. You can easily lease a 320i for under $300/month with no CCR through people like Greg Poland at Pacific BMW and then tune that up to 328i power for little money. MB has no comparable dealers who specialize in former demos and low lease rates. Better car but worse incentives.

Unless I get offered a really bad lease deal, next time round, I'm going with the new E450 wagon. I like the 328d, but I'd rather be in a Benz wagon. The C300 feels like a car of its time, while BMW appears to be resting on its laurels.