The Mercedes-Benz C240 was a luxury compact sedan and wagon available from 2001 to 2005 powered by a 2.6-liter V6 engine producing 168 peak horsepower. The C240 was normally sold with rear-wheel drive, but an all-wheel drive model using the Mercedes-Benz 4MATIC system was also available.
The Mercedes-Benz C240 paired its V6 engine to a five-speed shiftable automatic transmission as standard equipment, though a six-speed manual transmission was also available for some model years. The modest power of the vehicle allowed a rear-wheel drive 2001 C240 to accelerate from 0 to 60 miles per hour in 8.7 seconds. The car's engine was relatively efficient for its time, however, achieving 17 mpg for city driving and 23 mpg on the highway.
The Mercedes-Benz C240 had seating for five in its sedan and wagon versions alongside a number of internal amenities, though the backseat was somewhat cramped when seating three adults. Heated seats were a standard feature for C240 vehicles, as was an improved six-speaker CD sound system in the 2005 models. DVD-based navigation systems were also introduced as an optional extra on the 2005 vehicles. Anti-lock brakes, front airbags and stability control were also standard on 2005 C240 sedans and wagons.