Maybe you should stretch a bit for the S63.
IMO the S550 is a better car especially in the long run. It really all depends on how long you are planning on keeping the car for. If you look at a 1996 Merc 500 or 1996 Lexus, the lexus looks like crap, while the Mercedes is still a solid driver, and a good looking car. The Lexus cars Age too quickly, as they are always updating with facelifts and such.
Both the new S-class and the LS are great cars, and yes the LS is less expensive; but I would rather go with the S. I think that the LS just looks like an oversized and more expensive Carolla.
I would always go for the German before the Japanese, when it comes to these cars.

 

I like your thinking...best all around car I have ever owned.

 

I'm spending my day off Friday to shop the LS460L and S550 because of the year-end specials. The LS460 interior is virtually a dressed up version of the one I have in my '08 Sequoia The S550 will only become a reality if the dealer gives me $20K off msrp (we'll see)...It will come down to who gives me the best deal.

 

holy thread revival.

but i'll let it slide because you own a NSX.

 

Got $12K off the LS460 today, but Mercedes gave me $32K off the S550 4Matic AMG. First impression: BMW iDrive is a piece of cake compared to MB's. Took me ten minutes to find the radio controls...oh well.

 

32 off new S550? wow good work..... i thought idrive was terrible compared to system in s-class.....

 

S-Klasse anytime over the A8/LS. No doubt.

 

Old argument that never dies.
I like them both.
If Benz had the reliability history of Lexus, I'd go with the S550. It has a look that is unmatched by any other big car out there. At first I hated the bulging fenders but now I love them.
Some folks hate Lexus because of it's Toyota lineage. Put that aside and look at the car. It's really sweet. You must see one with aftermarket wheels because Lexus uses super conservative offsets for stock wheels.
The car looks both powerful and stylish. It has all the gadgets at below 60K. Get the top model and you're still below 100K.
Since reliability is my highest car value, the LS would win...but not by much.

People are gonna think I'm crazy but I looked at the Hyandai Genesis sedan this week. It looks and feels like real luxury from top to bottom. I saw no flaws. The price is astounding. If only we could get past the Hyandai name.

 

Bought a leftover '08 S550 4Matic Amg Pkg....but I get the feeling that 3yrs from now I'd wish I'd bought that LS instead as I'm driving around in a C230 loaner.