Don't overlook the Jaguar XF Sportbrake - better judged suspension than most of the German rivals and a real looker (IMHO.)

if you must to keep up with the Klauses - then looking up a tier from your list of German cars at the Merc E Class will give you more car for the money than the C class, E Classes are much more refined motorway cruisers and aren't actually that much bigger, depreciation is heavier than the C Class so they represent much better value for money second hand.

I'd still take the Jag...

If you can afford to buy a good approved used example and are willing and able to shell out for main dealer servicing and repairs then they are genuinely nice cars to drive and sit in. General reliability is nowhere near as good as image suggests largely due to sheer complexity but this falls off a cliff if non-franchise garages are used to maintain them as they simply do not have the expertise or equipment to do so effectively. Use the incorrect grade of oil and you’ll kill it in no time. If you have a genuine and well respected specialist nearby they may be worthy but again these guys tend to be no cheaper than main dealers if manufacturer parts are used. BMW 4cyl diesels (and petrols for that matter) are prone to timing chain issues while the sixes seem much better in terms of durability, DPF problems are more common than most and suspension and trim issues again worse than most. Merc are nothing like as well built as they were in the 80’s/early 90’s, with electrical problems common but the engines and gearboxes are generally good. Dealers are appallingly overpriced though for work. Lexus hybrids are smooth are usually utterly reliable but on distance runs they’re inefficient as all it is effectively is a large petrol engined car hauling a load of batteries and an electric motor or two around for the ride. If your use is mostly local then they do make sense but be warned battery packs degrade over time and cost a fortune to replace or repair. Faced with your usage my choices would be different but I get the appeal of a powerful German turbo diesel. I’d favour a 6cyl 3 series if pushed to choose, an Estate with auto box for resale reasons and sheer practicality.

Odd how the OP wants to spend £15k (not a small sum) on a 5-10yo complicated (and likely not anywhere as reliable as he thinks, especially as it will be of the age when BIG bills [even on wear and tear items] are due) bit of machinery (rather than a new one) and yet thinks that shelling out £700 for s set of four tyres every 1-2 years (mileage dependent), rather than £250 - £350 (for a set of four 16in 55-60 profile tyres from a quality manufacturer, fitted) is 'reasonable' - as that's as much as I've been paying out for things like a clutch (which hopefully lasts much longer than 2 years) on my Mazda.

Sorry OP, but I still think you are buying for image over substance, and, as SLO says (heed his words, as he is a car dealer and is well respected here), you could be shelling out several £000s in a very short space of time for servicing and repairs, which you'll need to budget for - hence why many of us here generally recommend people on a budget don't buy luxury cars (which are complex and can cost a fortune to run - German ones especially as they are nowhere near as reliable as Lexuses like yours), keeping to mid-range brands (especially from the Far East) and not full of toys that often go unused and are expensive to repair/replace when (eventually) they do fail.

If I were you, I'd:

1. Check out the reviews section for the cars you are looking at, paying particular attention to the 'Good & Bad' sections as well as owners' reviews, both of which give viewpoints of real ownership well after the shine has disappeared from the brand new cars when tested by journalists. Similarly using the search function on this forum, as many 'woes' and issues are highlighted here.
2. Make sure, whatever you buy, you can afford all those costs (including potential big bills) before you buy. No point in getting something you'll have to sell at the first sign of a major issue after a year or so, especially as you'll lose quite a lot on trading it in for another car.
3. If you are going to use the car to ferry your family around (especially with babies and young children), I'd be looking for reliability, comfort and practical over performance, styling and image. Your wife won't be happy (and I would hope you wouldn't be either) if the car breaks down when on the way to an important appointment with two screaming kids in the back.

In my (and many others here [see SLO's comments], including, I believe, that of HJ himself) opinion, luxury German cars built from the late 1990s onwards are not of the same engineering quality as they were (for the time) beforehand, compared to Japanese and (now) Korean brands, and once out of their warranty period (given those on your list are WELL out of warranty), will likely be very expensive to maintain for the reasons SLO states. There is nothing to be ashamed about by buying non-German makes of car, many of which are very styling, reasonable/good to drive, cost-effective and very dependable, as long as they are well-maintained.

If you still go with those cars you originally were looking at, good luck to you, however this isn't the first time that a new member has asked on these pages for such advice, mainly to validate their own choices (rather than to actually seek advice) which they then regret later on when the car fails in a big way (often due to neglect before and/or after its bought, because of the high maintenance costs and a reluctance to use main dealers who have all the [expensive and often unique] specialist equipment to maintain them).

If you can afford to buy a good approved used example and are willing and able to shell out for main dealer servicing and repairs then they are genuinely nice cars to drive and sit in. General reliability is nowhere near as good as image suggests largely due to sheer complexity but this falls off a cliff if non-franchise garages are used to maintain them as they simply do not have the expertise or equipment to do so effectively. Use the incorrect grade of oil and you’ll kill it in no time. If you have a genuine and well respected specialist nearby they may be worthy but again these guys tend to be no cheaper than main dealers if manufacturer parts are used. BMW 4cyl diesels (and petrols for that matter) are prone to timing chain issues while the sixes seem much better in terms of durability, DPF problems are more common than most and suspension and trim issues again worse than most. Merc are nothing like as well built as they were in the 80’s/early 90’s, with electrical problems common but the engines and gearboxes are generally good. Dealers are appallingly overpriced though for work. Lexus hybrids are smooth are usually utterly reliable but on distance runs they’re inefficient as all it is effectively is a large petrol engined car hauling a load of batteries and an electric motor or two around for the ride. If your use is mostly local then they do make sense but be warned battery packs degrade over time and cost a fortune to replace or repair. Faced with your usage my choices would be different but I get the appeal of a powerful German turbo diesel. I’d favour a 6cyl 3 series if pushed to choose, an Estate with auto box for resale reasons and sheer practicality.

All good points there.

With the Mercedes I would also put rust as a big issue on these cars. That's rusty bodies and brake pipes etc.

Jaguar is also a "premium" badge. How would you rate there reliabilty thou?