Few segments of the car market are more competitive than that of mid-size SUVs. After bouncing over a few potholes with the first generation, the second-gen Mercedes-Benz M-Class, available now, provides a nearly irresistible package for users unfazed by $50,000 price tags or $700 lease payments. Technology and entertainment options are superb, although the cockpit controller doesn't match up with its competition.

The ML350, powered by a 268-hp V6, and the ML500, with a 302-hp V8, provide superbly comfortable accommodations for four, with a generous cargo area. The price starts at $40,000, and even though the base car is nicely equipped with all-wheel drive, a seven-speed automatic transmission (yes, seven), and an in-dash LCD, the tab could go as high as $70,000.

Besides opting for the V8, adding audio and video will do the most significant damage to your wallet. Who can say no to a Logic7 surround sound, in-dash, six-disc CD/MP3/WMA changer, iPod adapter, and Sirius satellite radio? Then there's the DVD entertainment system. Check off every entertainment option, and you've just adjusted America's balance of payments across the Atlantic by $3,525. Or more correctly, south of the Mason-Dixon line: The M-Class come from Vance, Alabama. But even the plainest M-Class includes a line-in jack in the glove box and four 12-volt power outlets, along with an AM/FM/weather band radio, a single-disc CD player, and eight speakers.

Every M-Class comes with an integrated LCD panel in the center console stack (which is good), as well as the COMAND control buttons (not so good). COMAND is a previous-generation stab at cockpit controllers, and the combination of COMAND and 40 buttons and dials surrounding the 7-inch panel can be overwhelming. (For a full explanation of COMAND, see our review of the Mercedes S550.)

This COMAND comprises four directional arrows plus a center OK button. Mercedes did a much better job with the console-mounted control knob and hard buttons ("hard" means they perform the one function labeled on the button) on the new S-Class, but it has no plans to retrofit existed Mercedes cars. That's too bad.

The LCD is mounted in the upper-middle of the console stack; since it's not a touchscreen, it could be mounted higher, where it would be easier to see at a glance. That makes the nav system on an M-Class a mixed blessing: It's not as good as the best offerings from Infiniti, Acura, and Lexus, but it's not very expensive, either ($1,240 from the factory; $1,288, dealer installed). If you don't opt for the DVD system, the panel shows a big compass or radio/satellite information.

Driving and riding in the M-Class is a delight, especially if you get the air suspension ($1,775). Many buyers will, if they recall that the first-generation rode like a truck over rough roads—no surprise, since technically the 1998-to-2005 M-Class was built from a truck chassis. The air suspension replaces the traditional springs with air bladders.

If your ski house is a mile down a dirt road, or you just don't like snow, the M-Class provides the technologies you want: full-time four-wheel drive, a hill-holder brake when starting up (once you lift off the brake when stopped, it remains engaged for up to a second while you apply the throttle), ride that varies 3 inches up for back roads or 1 inch down for high-speed highway driving (if you get the air suspension), and downhill speed regulation.

The current M-Class is 6 inches longer, 3 inches wider, and 100 pounds lighter than the first generation, which shows the advantage of switching from a separate body and frame to a unibody construction. The ML350 EPA rating is 16 mpg city, 20 mph highway, about what you'd expect from a 4,600-pound vehicle. The ML500 is rated at 14 and 19 mpg, respectively.

We're not sure cars need seven-speed automatic transmissions any more than manual razors need five blades. But since Audi and BMW each offer six speeds, it was perhaps inevitable that Mercedes would offer seven, and that the upcoming Lexus LS460 would offer eight. After five or six speeds, some engineers say, there's a diminishing return to fuel-economy gains. That said, even with seven speeds, the car didn't seem to hunt (repeatedly upshift and downshift) for the proper gear.

The electronic transmission controls require some learning. The shifter is on the steering column. Press up for Drive and down for Reverse; press halfway in the opposite direction for Neutral, and press in for Park. The selector always springs back to the middle position, and if you come to a stop, you might forget to press Park; fortunately the car automatically engages Park when you open the door. For those who prefer to shift themselves, the back of the steering wheel has big shifter buttons. Press the outside to upshift, the inside to downshift. Pretty slick, and not obtrusive for the drivers who won't use it.

Aside from the technology features, the new M-class has some mainstream highlights and lowlights. Mercedes has the world's best seat-adjuster controls, in the shapes of miniature seat backs and cushions (take a look at our slideshow). But the seat cushion may be long for smallr drivers.

The two front cupholders fit 32-ounce drinks; the previous German mindset has been to grudgingly give Americans two flimsy plastic rings to hold 12-ounce soda cans, which hold fast only if you go gently around the corners. That's not why you buy a $50,000 German car.

Rails atop the center console do a passable job of holding gloves, cell phones, and Pocket PCs in place (even though you know they shouldn't be left there). When open, the ashtray steals space from the console, and it must be open for access to the power adapter. The turn signals could wake the dead. And the owners' manuals, a dozen in all, amount to 1,124 pages and take up so much space that there's a cargo net on the transmission tunnel to store them.

Since this is a Mercedes, there's little question that you'll be safe in an accident. Six airbags come standard: dual-stage front, front side, and front/rear air curtain. Rear-side airbags are $375. The four outboard seatbelts have accident pre-tensioners. Traction and stability control are standard.

In a era of rapidly improving automaker Web sites, mbusa.com is passable. The default car-selector guide can be confusing: You're presented with a grid of small icons arranged by model type and approximate price. As you start to build your dream Mercedes, the side of the screen fills with a list of n0-can-do items that you probably don't need to know about yet, such as "Trailer Hitch will not be orderable with Black Cloth Inserts." Delete one option, and MB online strikes another half-dozen, because they're interlocked. And the site is soft on details: Try finding out whether the standard CD player has MP3/WMA capabilities (yes, after the initial production run) or whether you need the air suspension for the adjustable ride height (yes, it's required).

The owner area is barely useful, which is to say about average. There's more of value online to Mercedes-Benz USA than to Mercedes owners. You can download the 536-page owner manual but not the equally essential 208-page COMAND manual. The PDF document doesn't hot-link page references. There is one nice contemporary feature: You can download a 4-minute podcast that explains options for ending the lease.

Rather than go for the V8, we'd start with the V6 ML350 and spend the V8 funds on the sensible half of MB's technology offerings. Get the Logic7 audio with the glove-box changer (you can't decouple the two), the iPod adapter, the steerable Xenon headlights, and the Parktronic parking sonar. Satellite radio is expensive ($500) given what others charge, but it's worthwhile if you're behind the wheel a lot.

Hold off on the $1,595 backseat DVD (get a system from a good auto-electronics dealer instead) and the hands-free phone adapter, which costs a stiff $923 (plus cradle and phone) and won't be Bluetooth-compatible until the 2007 models. Though the nav system isn't that good, you've effectively paid a third of the cost with the LCD panel integrated into the standard equipment, so you may as well sign on and learn to love COMAND.

Add in popular mainstream options such as metallic paint, a leather trim package that also includes the TeleAid emergency notification service, a sunroof with rain-sensing wipers (who makes up these fish/bicycle combinations?), seat heaters, and air suspension, and you're looking at $52,080, or $700 a month for a 3-year lease.

The ML350 provides one of the better alternatives in a crowded field that also includes the Acura MDX, BMW X5, Cadillac SRX, Land Rover LR3, Infiniti FX45, Lexus RX330 and GX 470, Volkswagen Tourag, and Volvo XC90. Especially consider the M-Class if you want good interior space and reasonable off-road (but not way-off-road) performance, and are less concerned by the lowest price or best navigation performance.

Play Slide Show/All Shots (13)

$40,525.00 - $69,250.00

With Mercedes-Benz's second-generation M-Class SUV, tech and entertainment options abound, but the COMAND controller remains tough to use.

LCD panel in standard all models. Reasonably priced nav system is available. Full-time all-wheel drive. Great passenger and cargo space. Mercedes-Benz fixed the trucklike ride.

The COMAND controller is complex to use. No Bluetooth until the 2007 model this summer. Options are pricy.