In these difficult times, is it possible to find an executive car that packs the desired level of performance and luxury but at a price that remains competitive? Clearly, eyebrows will be raised if company directors choose something verging on the ostentatious rather than the practical.

But car manufacturers seem to be waking up to this, if a little belatedly, and providing the type of car that ticks all the boxes when it comes to executive quality that does not hit the bottom line too hard.

The new C-Class Mercedes-Benz is a good example. Such is its level of sophistication, it almost seems unfair to call it a mid-tange saloon, but with prices starting from just over £22,000, it could be argued that it represents very good value.

And spend a little more on the C200 Kompressor Sport model tested here and you really wonder why it was necessary to consider the top-end cars which could become dinosaurs once the full impact of the recession is really felt.

Of course, the very name Mercedes-Benz lends you a little cache — it is up there with BMW and Jaguar as the name to watch out for in executive motoring.

There was something satisfying about seeing that three-pointed star on the grille, stylish alloy wheels and gleaming black paintwork on the car before I had even stepped inside.

Although it has been around for years, Mercedes-Benz has managed to cleverly evolve the C-Class into a modern-looking vehicle with a striking appearance guaranteed to turn heads.

Inside, the car is just as impressive. Admittedly, the test vehicle was fully loaded with a range of gadgets, from bluetooth telephone to automatic headlights and wipers, but despite all the bells and whistles, ergonomically it was still very pleasing.

The leather-bound, sculpted steering wheel (right) feels solid and well-made. Under the left thumb is a direction key allowing you scroll easily between functions on the computer. These include fuel consumption, journey time and exterior temperature, all of which are useful on a long journey. Reach a little further and you will find the stalk for the cruise control.

Under the other thumb lie the controls for the stereo and telephone, as well as a button which allows you to control the satellite navigation just by speaking to it.

This is really high-tech stuff.

But what is encouraging is that these gizmos do not detract at all from the driving experience of the car.

It is also possible to push another button and shut it all down. The central screen with its myriad of radio stations, DVD functions and navigation retracts into the dashboard, allowing you to get on with what this car actually does best.

Don’t be fooled that it only has a 1.8 litre engine. It is super-charged and seems to accelerate even faster than the figures suggest and engaging sports mode on the automatic gearbox, or flicking to the paddle shift manual system, just enhances the experience.

You can really push it into the corners with minimal roll, while the low profile tyres offer superb grip.

Such shenanigans are managed with the minimum of fuss and when it’s time to stop, the brakes are firm and predictable, while the engine noise rarely rises above a hum. It may be a Sport model, but there is no reason to detract from refinement.

What is also impressive is the panoramic windscreen which seems to cover a vast expanse of the car. This allows excellent visibility to the point where, on a night time drive along the M1, my daughter said it was like watching a video game on a widescreen television.

Meanwhile, you absorb all this seated comfortably on the optional leather seats which, thankfully, come with three-stage heaters to keep out the winter chill, while otherwise you rarely have to alter the sophisticated climate control system.

The only drawback was a shortage of legroom in the back for taller passengers — it is an improvement on the old model, but still not really adequate for every occasion.

But overall, this Mercedes just about has everything a car costing twice the price could offer.

Who could ask for anything more?