Well, owning a 97 e420 (4years old) with almost 70000 miles on it is a pleasure. I drove the car everyday without any problems. It never had any engine problems other than worn out parts like brake pads, wiper blades, etc. I also used to own 96 328i, on its third years, the car just like a man infected with HIV, he has to visit doctors(dealers) often. Oxygen sensor fault(2 times), water pump fault, left-right brake light fails(3 or 4 times), fog lamp bulb need to be replaced, sun roof produced rattle sound(not solved), battery need to be replaced(replaced by myself), interior light defects(2 times and the third time, I just gave up). It was really a nightmare for me. And again, it was a BMW!! My point is,Comparing a car is not just comparing what you can see such as the interior materials, but compare the whole car from outside to inside. The engine for example. It is clear that Mercedes SOHC engines are now fuel efficient, reliable, and has more low rpm power than the predecessors although maybe less powerful. BMW is really the one that need to do something with their engine reliability, try to make it last longer. I only hope that my 330xi will last longer than my previous 328i.
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