What Car? Car of the Year 2006 - Best luxury car

Mercedes Benz S500
Price: £64,750
Target Price: £64,750

Every decade, Mercedes-Benz launches a new S-Class, and every decade, the rest of the world gasps in amazement. The world's oldest car company knows a thing or two about building luxury cars and the S-Class is its showcase.

What an achievement. The new model won a rare five-star What Car? rating, obliterating strong opposition and rewriting one or two rules along the way. At a stroke, it has become the best luxury car on sale.

Slide into the cabin and marvel at the impeccable surroundings: every surface is trimmed in soft leather, cool aluminium or polished wood; and space is in abundance front or back. It's a truly pampering experience and you'll enjoy some of the best seats money can buy.

So far, so good. However, the S-Class also trumps every rival in the driving stakes. Our chosen S500 provides effortless performance and is supremely refined. Its forte is wafting around, with barely a whisper from the 5.4-litre V8; stamp on the throttle, and it will scamper to 62mph in a Porsche-threatening 5.4sec.

The seven-speed automatic slurs gearchanges and the suspension smothers away road scars. It all adds up to the most relaxing driving experience: it's a cruiser, yet it can make a good stab at being a sports saloon, too, especially if you opt for the £2310 Active Body Control system. Thank the taut body control and precise steering for that.

We haven't even mentioned the technology, such as an infra-red night-vision camera option, or the seats shaped to your body's contours by seven air chambers. The cruise control even brakes you to a halt and then accelerates back up to speed – automatically.

The S-Class isn't merely a technological tour de force. It's a perfect example of machines making our lives easier – and a lot more comfortable. Now that's real luxury.

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