Oh, Yes, You Can Afford a Luxury Car: Best Luxury Cars Under $40,000
Luxury cars allure with premium design quality, comfort and performance. Plus, they maintain reliability and long-term value. However, finding a vehicle that combines opulence with affordability might sound improbable.
Fortunately, there are several high-end sedans and SUVs on the market for under $40,000 that offer upscale interiors, futuristic technology and a smooth ride. And get this: they start at a solid $9K under the average price of a new car.
Sleek sedans and small SUVs form the entry-level to luxury lineups. While these vehicles don’t include many of their counterparts’ top-of-the-line features, they still pack a powerful bang for your buck. So, if you need a new car and think luxury is out of reach, just keep reading. Here’s our list.
Related: You Don’t Have to Splurge To Get Luxury: The Best Luxury Cars Under $50,000
The 2025 Acura Integra is Premium and Practical, Priced From $33,595
The 2025 Acura Integra, a 4-cylinder turbo that generates 200 HP, is engaging and practical, but most importantly, it’s one of the most affordable luxury cars you can buy. Even the upgraded trims (A-Spec and A-Spec Technology package), should land you under the $40,000 mark. While each trim level is highly efficient, the front wheel drive base model gets the best fuel economy and comes standard with a head-up display.
Video: Acura Integra first drive
The 2025 Acura Integra A-Spec Has A Red Hot Interior
This sporty hatchback beholds an interior full of rich textures, with a leather-wrapped steering wheel and body-hugging sports seats. Oh, and it comes in a manual transmission in the A-Spec Technology edition for those who really want a stick shift. Automatic transmission buyers aren’t left out though; those come with paddle shifters.
Drive With Attitude in the 2024 BMW 2 Series, Priced From $38,800
Fierce styling and bold color choices make the BMW 2 Series an outstanding choice if you’re looking for sporty performance, and a bit of drama, on a budget. This coupe stands among the smallest luxury vehicles you’ll find on the road. Its powerful 2.0 liter inline four-cylinder 255 HP engine can power this car from 0-60 in just 5.3 seconds.
Video: Meet the X2, the SUV version of this car, and see what it’s capable of
Check Out The BMW 2 Series Live Cockpit
Valuable driver assistance features come standard, including BMW’s Live Cockpit. This conveniently provides vehicle information in the head-up display to help keep your eyes on the road. The 2 Series also comes with a voice-activated assistant and touch-screen multimedia system.
The 2025 Lexus UX is Cheap(er) and Charming, Priced From $37,490
The most affordable vehicle in the Lexus lineup is the Lexus UX. Although it has fewer features and less cabin space, the UX maintains luxury for a low price with its charming and high-quality design. The 2025 model gets a boost in horsepower over its predecessor, with a 4-cylinder hybrid that takes the HP from 181 to 196. Just large enough to be considered an SUV, this spry crossover is perfect for city life.
Video: We test drove the Lexus UX and it’s puppy approved
The 2025 Lexus UX Interior Is Thoughtful And Tech-Forward
The interior is thoughtfully crafted with a wireless charging pad under the dashboard, premium sound system, and a touchpad to operate the infotainment system without taking your eyes off the road.
The Most Affordable Audi: 2025 Audi A3, Priced From $35,800
Considered only a notch below the BMW 2 Series, the Audi A3, powered by a 4-cylinder engine that generates 201 HP, unlocks luxury without the daunting price tag. The new 2025 model, offers small refinements that create a sportier look. Plus, this sedan comes packed with integral safety technology.
Video: We test drove the Audi A3 and this is what we thought
Sink Into the Audi A3’s Quilted Sports Seats
The 2025 Audi A3 contains new lighting elements and silver trim to elevate the interior. Comfortable sports seats and a panoramic sunroof position you for a pleasant driving experience with great gas mileage.
Everyday Functionality in the 2024 Audi Q3, Priced From $37,400
For a small step up in price, the Audi Q3 offers capability and class. This subcompact luxury SUV, with standard AWD and a 4-cylinder engine that delivers 184 HP, provides a quiet, agile performance perfect for city driving. The Q3 contains excellent driver-assistance technology, and adaptive cruise control now comes standard on the 2024 models.
Video: Our test drive of the Audi Q3
The Audi Q3 Interior Provides Practicality and Style
Heated front seats, leather upholstery and a panoramic sunroof check all the essential boxes of a luxury experience.
The 2024 Cadillac XT4 Serves Elegance, Priced From $37,895
The Cadillac XT4 hones the classic beauty and elegance of a Cadillac with its 2024 redesign. While might not be as sporty as its sedan siblings, the XT4 is powered by a 4-cylinder turbo engine that generates 235 HP, and delivers a basic level of luxury that would be considered an upgrade option in other cars.
Video: We test drove the Cadillac XT4 and this is what we thought
A Massive Multimedia Display Takes Center Stage In The Cadillac XT4
Feel pampered by this small SUV’s roomy cabin and abundance of standard tech features, such as the remarkable 33 inch infotainment display, leatherette seating and wireless Apple CarPlay and Android Auto.
The 2024 Cadillac CT5 is Stylish, Safe and Sporty, Priced From $38,395
Built on the same platform as the CT5-V Blackwing, the 2024 Cadillac CT5 is an attractive sedan with several new exterior colors to choose from. It has an excellent safety rating and comes standard with a fun-to-drive 237-hp turbocharged 2.0 liter four-cylinder engine.
The CT5 Interior Redesign Creates Comfort and Ease
The redesigned CT5 has superior backseat legroom to previous models and more user-friendly controls. Standard tech features include Apply CarPlay and Android Auto as well as a wireless charging pad.
Minimalism and Sustainability in the 2025 Volvo EX30, Priced From $34,950
Although the price of the 2025 Volvo EX30 makes it an entry-level Volvo, it is by far one of the best subcompact electric SUVs, though buyers will have to actually wait until 2025 to buy one; Volvo is delaying shipping to the US until production of this model starts in Belgium next year. But it’ll be worth the wait; the EX30 harnesses one of Volvo’s fastest, with up to 422 HP, and has excellent battery performance with up to 300 miles on a charge.
Video: We test drove the Volvo EX30 and this is what we thought
The Volvo EX30 Is Crafted From Recycled Denim, Plastics and Steel
The interior is minimalist and thoughtful with clever storage, a “concert-hall quality” sound system, 12.3″ multimedia screen and voice-activated Google assistant. Recycled materials form the interior’s comfortable upholstery and bucket seats. Just another reason to put this one on your must-see list when it makes it to dealers next year.
We love the idea of investing in a luxury car. With higher-end materials, more sophisticated details and a more timeless design, they should hold up longer than lower-priced popular models. And, with slightly more power than similar sized cars and SUVs, they should last longer too. Isn’t it nice to know that just because you’re budget minded doesn’t mean you have to compromise your luxury dreams?
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