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Lexus is a great way to get reliable luxury, but for the performance enthusiast, a lightly used BMW N54 powered car (2007-2010 135i, 335i, etc) is the perfect balance between modifiable fun and luxury.
Parts aren't too expensive as the platform is fairly popular, and if you like to DIY-installs, mods are easy to manage.
The new N55 (2011+) isn't a bad engine either.
My wife's Audi A4 has been amazing in our two years of ownership. I haven't done much in the way of modifications though as they are surprisingly expensive.
As far as Mercedes goes, friend has an AMG and he laments how much everything costs. :p
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