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BMW M340i vs. Lexus IS 500: Which Performance Sedan Fits You?

The BMW M340i offers optional xDrive and lower listed fuel use; the 2025 Lexus IS 500 counters with a naturally aspirated 472-hp V8. Compare the trade-offs and availability.
Entry573 Date Time4 min MechanicCarCody Team
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The BMW M340i and Lexus IS 500 F SPORT Performance deliver different kinds of speed: the BMW pairs a turbocharged inline-six with optional all-wheel drive, while the Lexus puts a naturally aspirated V8 in a rear-wheel-drive sedan. The 2025 Lexus has the higher published horsepower; BMW’s claimed 0–60-mph time is quicker in xDrive form, and its listed fuel economy is substantially better. For a U.S. shopper, availability is another dividing line: the M340i is listed as a 2026 model, while the 2025 IS 500 is reported to be its final model year, leaving remaining new inventory or used examples to find.

How the M340i and IS 500 differ

This is not simply a choice between a faster and a slower car. The BMW emphasizes turbocharged torque, configurable rear- or all-wheel drive, and lower listed fuel consumption. The Lexus prioritizes a naturally aspirated V8 and its higher horsepower rating, with rear-wheel drive as the cited configuration.

Specification BMW M340i Lexus IS 500 F SPORT Performance
Model year covered 2025 for BMW’s official engine and acceleration figures; Cars.com lists the 2026 model 2025
Engine 3.0-liter turbocharged inline-six with 48V mild-hybrid assistance in the 2025 BMW release Naturally aspirated 5.0-liter V8
Published output 386 hp and 398 lb-ft (2025 BMW figures) 472 hp and 395 lb-ft (2025 Lexus figures)
Manufacturer-claimed 0–60 mph 4.4 seconds, rear-wheel drive; 4.1 seconds, xDrive 4.4 seconds
Drive configuration Rear-wheel drive or xDrive all-wheel drive Rear-wheel drive
Listed fuel economy 27 city/33 highway mpg; 29 combined (2026 comparison listing) 17 city/25 highway mpg; 20 combined (2025 comparison listing)
Listed starting MSRP $61,700 (2026 Cars.com listing) $59,520 (2025 Cars.com listing)
Basic warranty listed 4 years/50,000 miles 4 years/50,000 miles

Figures in the table come from different model years and sources, not a same-day test of identically equipped cars. The listed MSRPs are comparison-page snapshots, not out-the-door quotes. Confirm the exact vehicle’s window sticker, drivetrain, pricing, and warranty documentation before comparing offers. BMW’s official 2025 release describes the mild-hybrid system as supporting sharper power delivery and greater efficiency; that statement is BMW’s product description, not a controlled comparison with Lexus.

Which is faster, the M340i or IS 500?

On the manufacturers’ published 0–60-mph claims, the M340i xDrive is quickest at 4.1 seconds. BMW claims 4.4 seconds for the rear-wheel-drive M340i, matching Lexus’s 4.4-second claim for the IS 500. These are manufacturer figures, not results from a matched independent test, so they do not establish which car will be quicker in every real-world situation.

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The Lexus leads in published peak horsepower, with 472 hp to the 2025 M340i’s 386 hp. BMW lists slightly more torque: 398 lb-ft versus 395 lb-ft. Those numbers describe different engines and do not, by themselves, settle how either car feels or performs in all conditions.

What the engines and drivetrains mean in daily use

BMW: turbocharged six-cylinder, with an AWD option

The M340i uses a turbocharged 3.0-liter inline-six; the 2025 version also has 48V mild-hybrid assistance. Its available xDrive all-wheel drive gives buyers an alternative to rear-wheel drive and may be useful in snow-prone areas. The specifications here do not include a matched winter test, so AWD should not be treated as a guarantee of superior winter stopping or handling.

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Lexus: naturally aspirated V8, rear-wheel drive

The IS 500’s naturally aspirated 5.0-liter V8 is the defining reason to choose it over the BMW for many shoppers: it offers a distinct V8 character without turbocharging. Lexus lists the IS 500 as rear-wheel drive. A Road Ethos comparison published October 2, 2026, describes the Lexus as appealing for its V8 sound and character and the BMW as sharper-handling and more efficient; those are editorial evaluations, not findings from a matched instrumented test.

Fuel economy, price, and warranty

Cars.com’s comparison lists the 2026 M340i at 27 mpg city, 33 highway, and 29 combined, versus 17 city, 25 highway, and 20 combined for the 2025 IS 500. Lexus’s 2025 brochure also lists 17/25/20 mpg. These are listed estimates, not a promise of real-world consumption; verify the EPA label for the specific drivetrain and vehicle.

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The same Cars.com comparison lists starting MSRPs of $61,700 for the 2026 BMW and $59,520 for the 2025 Lexus. Treat these as listing values rather than current dealer quotes: equipment, destination charges, local inventory, and transaction terms affect what a buyer actually pays. Cars.com lists a 4-year/50,000-mile basic warranty for both. For an unsold or used vehicle, check its VIN-specific warranty documents and in-service date rather than assuming the full term remains.

Is the Lexus IS 500 discontinued?

Road Ethos reported on October 2, 2026, that the 2025 IS 500 is the final model year and that new examples are limited to remaining dealer inventory. That makes it a different shopping exercise from the M340i, which Cars.com lists as a 2026 model: confirm local Lexus stock before planning around a new car, or search the used market. Availability varies by dealer and location.

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Which should you buy?

Choose the BMW M340i if flexibility matters most

  • You want a currently listed model and the choice of rear-wheel drive or xDrive.
  • You value the BMW’s lower listed fuel consumption.
  • You want its quicker published 0–60-mph claim in xDrive form.
  • You want current equipment details checked against a specific model year and build. BMW’s official 2025 release describes iDrive with Operating System 8.5, QuickSelect, and a curved display; do not assume every model year has identical equipment.

Choose the Lexus IS 500 if the V8 is the point

  • You specifically want a naturally aspirated V8 and value that engine character over lower fuel use.
  • You are comfortable with rear-wheel drive rather than an available AWD configuration.
  • You are willing to locate remaining 2025 inventory or consider a used example.

For a used IS 500, review the service history, condition, accident history, and remaining warranty status for the actual vehicle. A specification comparison cannot establish an individual car’s condition or reliability.

What this comparison cannot settle

There is no matched independent instrumented comparison established here, so acceleration claims should be read as manufacturer claims and handling descriptions as attributed editorial opinion. Local inventory, transaction prices, VIN-specific warranty coverage, and insurance costs also depend on the car and buyer; verify those details directly before committing.

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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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