These are two cars of very differenct character. Though the Lexus is expensive to fix I do believe your odds for having fewer problems are much greater with the Lexus.

That being said, I do believe that the interior materials in the W124 to be of much higher quality. To me, the W124 feels more expensive. You don't get the feeling that corners were cut to meet price point. You'll notice that most Lexueses (sp?) past 90-100K have REALLY worn leather. But in general their electrical systems aren't strarting to biodegrade like some Mercedes are by that point.

You will find that the Lexus has more in the way of creature comforts. More comfort and convenience details have been thought out. I was intially suprised that the W124 only has a telescoping wheel - no tilt. Also I would have expected the wheel and seat to retract when exiting the car like there is in a Lexus or Infiniti. Lexus will have better NHV than a W124. Lexus has a better stereo system. Lexus will be more comfortable in traffic - softer seats, lighter accelerator pedal, better ergonomics, and better illumination of instumentation (no 3 watt bulbs here!). With the LS 400 are no engine wiring harness issues. Though I don't have hard evidence of it, based on my previous experience with Toyota products, I would wager that you'll have a much more durable AC system. I haven't heard any LS400 owners commonly complaining of $2000 AC evaporator replacements! I know the LS400 has a much more effective AC system. W124s AC is slow to respond. W124s AC system will only allow the driver to select either full blast or lowest setting on the fan speed. Other settings can only be engaged by the whim of the auto/AC mode (I guess the German Engineers are REAL control freaks!). The AC system also is noisy! The LS 400 transmission is much smoother shifting as well as much quicker to respond.

W124 to me is more "old school." If you sit in the two side by side you'll see what I mean. But as a result has much more personality. I think the LS400 IS a good car, just incredibly boring. I find the design to be too generic - as if it were an overgrown Toyota Camry. You'll notice that much of the hardware in a Lexus are off the shelf Toyota parts (personally I think this is a marketing mistake). I think the esthetics of the W124 are much more pleasing. The W124 has and will certainly age better than an LS400.