I've heard the Jetta described as the best diesel sedan available in the US for under $30K. If there were a small diesel in a C class, M-B would probably be getting pretty close.

The '06 Jetta is great to drive. It handles very well and feels solid. The steering on the '96 Benz feels just a bit more disconnected from the road, but otherwise it handles every bit as good as the Jetta.

But if you're a passenger, the Benz is hands-down a much better ride under all circumstances. There is no comparison. You don't seem to feel all of those road vibrations when you're driving.