You’ll not need me to tell you that perception is fast overtaking reality as the arbiter of what matters in our lives.

I recently splurged an eye-watering sum on a stereo I couldn’t afford. Because the hardware consists of one small box and two equally diminutive speakers it is only when an audiophile happens to be in my house that it’s even noticed.

Had it sounded half as good but been twice the size, with an array of convincingly twinkling lights, I’d be the envy of the street.

It’s true from cameras to clothes and telephones to watches. The ability to do the job is now of secondary importance to the image.

Cars are the ultimate example. Forgive the generalisation but broadly speaking the image surrounding BMW drivers, fairly or unfairly, is of fast-living hotshots; Audi drivers are regarded as style connoisseurs, while Merc owners are perceived as conservative.

Where Lexus fits into the scheme of things is not clear. Despite the company having been in the UK market for more than 15 years, Steve Settle, director of Lexus GB, admits his cars still suffer “a lack of strong brand image”.

Lexus has decided to make the best of this by appealing to people who prefer a car that says nothing about them.

It’s an interesting contention and there may be an increasing number of customers who don’t want to be stereotyped. Nevertheless, call me a die-hard traditionalist, but it still matters to me if the cars are any good or not.

Happily the all-new GS300, on sale from April 15 in three specifications ranging in price from £30,400-£38,000, is not at all bad. It’s pleasing in appearance inside and out and were it not for its disappointingly choppy ride quality would have the ambience, maturity and sense of occasion of an altogether larger, more luxurious car, something that only mid-sized Audis have managed in recent times.

Many of the issues that dogged the GS’s predecessor have been addressed and, crucially, there’s now decent room in the back and boot. That alone should win over a few Merc voters used to the wide open spaces offered by its E-class saloon.

More impressive still is the fact that the GS’s once wooden handling has been transformed for the better. It’s well balanced, unusually grippy and a hoot to hurl down a decent road. If that has the BMW faithful pricking up their ears, so it should: it really is that good.

Where it’s less impressive is in a straight line, despite the seemingly impressive 245bhp output of its new 3 litre engine.

With its cylinders now arranged in a V formation, rather than a long line like the old GS, some smoothness and character has been lost, and while its on-paper performance is impressive enough — 0-62mph in 7.2sec and a top speed of 148mph — in fact the engine has to be caned before it will give its best, a situation exacerbated by a smooth-shifting but rather unresponsive six-speed auto box.

What’s needed is the 4.3 litre V8 motor fitted to the £46,755 GS430 which offers only a little more ultimate power (279bhp), but a whole load more thrust where it’s needed — in the middle of the rev range. The bigger engine is more refined too, offering a smooth and cultured howl when pressed.

The problem is that you can’t buy a GS430 without also being lumbered with a load of extra equipment you’re probably not going to want.

It has, for instance, radar-controlled active cruise control that keeps you a safe distance from the car in front but also has a habit of putting on the brakes when they’re not needed, like when you’re about to change lanes to overtake.

This radar will also instruct the seatbelts to tighten when it judges an impact with a large metallic object to be unavoidable and, if your foot is even brushing the brake in this situation, it will perform a full emergency stop for you too.

All of which is clever, but it gives the brake pedal a strange feel and makes normal braking difficult to modulate.

There is also an active steering system that steers into a slide without you having to move the wheel, which would likewise be great in an emergency but again gives an odd sensation the rest of the time.

The one to go for, undoubtedly, is the mid-range £35,900 GS300SE, which has all the goodies such as leather and sat nav that you’ll not only want but without which the car will not fetch decent money come resale time.

It lacks items such as a swish stereo, sunroof and the big wheels offered by the £38,000 SE-L, but they will be near worthless second hand.

And a decent choice the GS300SE will be. It is not going to bust the class apart but it’s good to look at, better to drive and, with Lexus build quality, may well prove best to own. In short, it’s good enough.

VITAL STATISTICS

Model Lexus GS300SE
Engine type V6, 2995cc
Power/Torque 245bhp @ 6200rpm / 228 lb ft @ 3500rpm
Transmission Six-speed automatic
Fuel/CO2 28.8mpg (combined cycle) / 232g/km
Performance 0-60mph: 7.2sec / Top speed: 148mph
Price £35,900
Verdict A pleasing alternative to the mainstream
Rating 3/5

THE OPPOSITION

Model Mercedes E350 Elegance (£35,770)
For Spacious, exceptional ride quality, very refined
Against Lacks traditional bombproof Merc feel

Model BMW 530i Sport (£34,695)
For Strong performance, impressive handling, well built
Against Harsh ride, iDrive control system, looks