Just went through the same buying decision about 800 miles ago. The least expensive car with side head airbag protection is the Passat, but it does not compare to your current choices.<br> <br> Either car is low to the ground for me, and both cars are nearly identical in all dimensions (wheelbase, overall length, interior room &etc). Both offer surprisingly generous legroom, even for 95th percentile males.<br> <br> New for the new C-class is rack and pinion steering and more hp available. The new C's better-looking styling loses a little room inside, compared to older C's, but the trade-off was worth it in increased sales for MB.<br> <br> BMW is more dependent on 3-series sales (e.g., about half of all units sold), which have flattend, probably due to 40-60% growth in C-class sales, and also new competition from Lexus and Jaguar in the luxury sport sedan segment.<br> <br> Both engines are pretty neat. BMW stays with the I-6 approach. MB's 320 is a component V6 engine, i.e., the same engine as used in an ML430 V8, for instance, less two cylinders (same engine as the SL500, less two cyls. and a smaller bore).<br> <br> Also, the 320 has the same trans as for MB's V8s, e.g., same as is found in the 349 hp ML55 AMG. So, you probably can count on MB's lifetime trans being just that in the 1,000 pound lighter C-class.<br> <br> Most MLs sold sinced '98 are powered by the 320. The E320, at one time, actually offered the best gas consumption of any other V6, and the 320 engine was in Ward's pick of the top ten best engines for several years, with its twin-plug, 3-valve per cylinder design. BMW engines also are in Wards' top ten lists, but they're more in the racing engine genre, e.g., high rev, variable valve timing.<br> <br> The 320 has a few less hp than the 330i but the 320 has more torque. And, the 320's torque advantage starts at a lower rpm and remains higher over a longer range than the 330i motor, so it doesn't have to work as hard to do what's required, and therefore should last longer.<br> <br> The 320's crankshaft is weighted so it does not have the same feel of the 330i, i.e., the 330i motor will 'feel' stronger off the line; the 320 should feel more substantial.<br> <br> The MB's all leather seats seem better-- more supportive. The C-class probably will be more expensive for '03 because some items that are standard now may be options at an additional price, e.g, automatic trans, teleaid.<br> <br> Now probably is the time to buy a C-class if you can find an '02 on the lot in a color selection that you want. The '03 C-class production already has started and no significant changes are announcded; however, Xenon lights will be an available option for about $800.<br> <br> The new C should be around for another 5 years, so it's early on MB's product life curve and should offer good resale value.<br> <br> Other than the C, the only thing more exciting would be the '03 E-class that is due about September, but that will be more expensive, have some new generation problems that need working out, and will be much bigger than your wife wants. After driving a C320 for just a few weeks, your wife will not go back to a Honda.<br>