Luxury cars demand a premium because they provide access to high-end features, elegant and quiet interiors, top-notch finishes and switchgear, stunning styling, enhanced performance, cutting-edge infotainment systems, and refined driving dynamics beyond what you’ll find in the non-luxury sector. If you’re after these kinds of things but have limited funds and don’t wish to buy a used car, you still have several new car options to choose from if you are after cheap luxury.
The Best Affordable Luxury Cars in 2025
- What to Consider When Buying Luxury Cars
- Acura Integra
- Cadillac CT4
- BMW 228i Gran Coupe
- Audi Q3
- Volvo XC40
- Lincoln Corsair
- Lexus ES250
- Genesis G70
What to Consider When Buying Luxury Cars
So as not to break the bank, you’ll need to be mindful of more than just the purchase price (the average of which is roughly $62,000 for a luxury vehicle today). You’ll want to assess the total cost of ownership, which includes the purchase price plus depreciation, insurance costs, maintenance, expected repair bills out of warranty, and fuel. Reliability plays into this: Generally speaking, models from Japanese and Korean brands will prove to be not only more reliable but less expensive to repair than the stalwart German cars. We kept all this in mind when creating our list of the best luxury cars with a price cap of $45,000. This disqualified several car brands from our list, including Mercedes-Benz, Jaguar and Porsche.
The size of the vehicle matters, too, as large sedans and SUVs usually cost more than compact ones. As you’ll see, most of what we’ve selected falls into the size-small category.
You may also have to forgo the engine upgrades typically reserved for high trim levels, but if you decide later on that you need more power, aftermarket ECUs and chips are available to add boost to a turbocharged engine at a fraction of the cost.
Lastly, it matters how a vehicle makes you feel. We’d recommend seeking out the most beautiful, compelling vehicle in your budget that yields the greatest dividends in terms of pride of ownership and enjoyment.
Acura Integra
Base price: $34,195
Based on the well-sorted Honda Civic hatchback, the Integra should appeal to those looking for an entry-level luxury car. It drives really well, has terrific steering feel, and is light on its feet. It has a huge cargo area compared to many other luxury sport compacts, and it offers stellar fuel efficiency. This Acura’s diminutive turbocharged 1.5-liter four-cylinder powertrain makes 200 horsepower, which isn’t class-leading but it’s plenty for this application, given the Integra’s weight. While it’s not the quietest of luxury sedans, it has the chassis rigidity and the suspension tuning to make it a highly likable daily driver. It’s worth pointing out that its big brother, the Acura TLX, offers many of the same attributes but breaks past our budget cap.
Cadillac CT4
Base price: $36,390
Cadillac does a fair job blending luxury with sportiness in its rear-wheel-drive-based CT4 compact sedan. The base model — with a 237-horsepower turbocharged 2.0-liter four-cylinder under the hood — is plenty quick enough, not to mention comfortable and enjoyable, and still returns a decent 26 combined mpg. Competitors’ interiors will likely impress you more in material quality and design, but the CT4 is a very nice daily driver and the least expensive entry into the Cadillac family, among one of the cheapest luxury cars available today.
Cadillac also offers the CT4 with other engines, including a 472-horsepower twin-turbo V6 in the CT4-V Blackwing, but such models all exceed our $45,000 limit. What’s more, those Caddys have firmer suspensions, which somewhat undermines the luxury vibe.
BMW 228i Gran Coupe
Base price: $39,395
Owning a BMW — even the cheapest one from the luxury brand — is a way to show your friends, family, and neighbors that you’ve made it. It was, after all, the BMW 3 Series that paved the way for luxury sport sedans.
The 228i Gran Coupe, a member of the extended BMW 2 Series family, easily makes our list for its combination of sleek design, nice materials, and performance. It’s not particularly spacious for passengers or their luggage, but the 228-horsepower turbocharged four-cylinder is a suitable powerplant for this small four-door. You can pair that engine with either front-wheel drive (FWD) or BMW’s xDrive all-wheel-drive (AWD) system. And if you can wait until mid-2025, BMW dealerships should have the redesigned model on their lots. It’ll make a bit more power and resemble its stablemates better, but it’ll also cost more.
Audi Q3
Base price: $38,695
The Audi Q3 is the least expensive compact SUV to join our rankings, and it’s here largely because of its cabin. Audi has long been renowned for combining modern, tech-forward design with pleasing materials and colors.
Like most Audis, the Q3, the Q3 - which is based on the Audi A3 hatchback - comes standard with the brand’s Quattro AWD system. This is mated to a tepid 184-horsepower engine, which does an OK job moving this hefty 3,900-pound crossover, but it’s not why people buy the Q3. They buy it for its excellent noise isolation and its posh interior.
Volvo XC40
Base price: $41,945
The Volvo XC40 is often overlooked, largely because Volvo is more synonymous with safety features than luxury, but this Scandinavian brand has definitely moved upmarket in recent years. The XC40 has a bright, clean, and simple cabin that should appeal to the fashion-forward, though the lack of physical controls may aggrieve some drivers. The standard 247-horsepower turbocharged 2.0-liter four-cylinder and AWD system are a good match for this small SUV. Plus, the XC40 is more spacious than most rivals at this price point.
Lincoln Corsair
Base price: $40,980
The Corsair is sort of an unpretentious luxury crossover. Driving enthusiasts will certainly want to look elsewhere, but this Lincoln is a decent choice for those on a budget who value quality materials, seat comfort, and space. It also looks the part: Take the badges off and the average person might guess the Corsair came from a German brand instead of an American one. With a 250-horsepower turbo four under the sculpted hood, this crossover has no difficulty keeping up with traffic on or off the highway, and it has a smoother ride than some of the other vehicles on this list.
Lexus ES250
Base price: $43,215
Lexus vehicles have a well-earned reputation for holding their value and being reliable — in part because they benefit from Toyota-based engineering and manufacturing. The ES250 (unlike the V6-powered ES350 and hybrid ES300h) comes standard with all-wheel drive, and its naturally aspirated 2.5-liter engine puts out 203 ponies, which is adequate if less than thrilling.
That said, this midsize sedan is more about luxury than performance, and it plays its role well, boasting a calm and smooth ride, great seating, and very nice materials. And with that Toyota engineering, it is likely one of the most reliable luxury cars available today, providing Toyota Camry levels of reliability.
Genesis G70
Base price: $43,250
The luxury arm of Hyundai, Genesis doesn’t have the same legacy or prestige as the European players, but it’s making a name for itself by offering truly terrific design, luxurious materials, and solid performance at an attainable price. The G70 sedan is a great example of this. It comes with rear-wheel drive and strikes the ideal ride-and-handling balance for a sporty luxury car. It's the most powerful model on this list, too, with a 300-horsepower turbocharged 2.5-liter four-cylinder providing motivation, and while it’s not a sports car, it might also provide the best driving experience on this list.
