2015 Mercedes C-Class Priced From $39,325

Mercedes just announced U.S. pricing for the 2015 C-Class luxury sedan marking an increase over the outgoing W204 model.

Pricing for the new C-Class will start at $39,325 including delivery. The 2014 C-Class, which marked the end of the third generation, comes with a starting price of $36,725. That means the entry-level fourth-generation car gets a $2,600 price increase. Equipped with the 2.0-liter turbo four, the not-so-entry-level Benz has 241 hp and 273 lb-ft of torque compared to the outgoing C250’s 201-hp direct-injected 1.8-liter four-cylinder mill.

Sitting above that model, Mercedes is also offering a version with its new 3.0-liter bi-turbo V6 that pushes out 329 hp and 354 lb-ft of torque. At launch, the company will only offer it with 4Matic all-wheel drive for $49,515 including delivery, but the company said in a press release that a rear-wheel drive model will follow in the first quarter of 2015.

At its base MSRP, the new C-Class climbs by roughly seven percent compared to last year, but more importantly, it pushes the price floor within spitting distance of the $40,000 mark to widen the gap between it and the smaller CLA-Class Mercedes launched in North America last fall.

Through the first six months, Mercedes reports selling 10,576 CLA-Class sedans including the hotter CLA45 AMG. Company spokesman Christian Bokich said “demand has exceeded supply across the CLA range in the USA” in an e-mail.

The starting MSRP for a CLA is $30,825 including delivery, which close to the starting MSRP of the now-gone W204 C-Class before inflation.