10 Best Luxury Cars Under $40,000 (2024 Guide!) - Dollarsanity (2024)

Luxury cars are the epitome of style, comfort, and performance. They are the ultimate status symbol and everyone dreams of owning one.

10 Best Luxury Cars Under $40,000 (2024 Guide!) - Dollarsanity (1)

We all love luxury cars, which can make us feel special as we turn heads when we drive down the street on our snazzy ride. Of course, luxury cars come with a hefty price tag. But that’s not necessarily the case.

Believe it or not, you can find quality luxury cars that won’t break the bank and come under $40,000. This guide will introduce you to some of the best luxury cars under 40k that will make you feel like a million bucks without spending it.

Contents

  • What Are the Best Luxury Cars Under 40k?
  • Cadillac ATS
  • BMW 2 Series
  • Lexus IS
  • Acura TLX
  • Audi A3
  • Mercedes-Benz GLA
  • Mercedes‑Benz A‑Class
  • The Lincoln Corsair
  • Infiniti Q50
  • Volvo S60
  • Conclusion

What Are the Best Luxury Cars Under 40k?

There are several different types of luxury cars available for under $40k. From sedans to SUVs and convertibles, there is something for everyone in this price range. Let’s take a closer look at some of your options:

Cadillac ATS

Starting Price: $39,990

The Cadillac ATS is a vehicle designed to turn heads. It has a sleek, elegant appearance that adds class to the road. Inside, it’s all top-shelf materials for a true luxury experience.

The MSRP for the Luxury trim barely skirts the $40K mark and offers amenities like a heated steering wheel, front seats, remote start, and Brembo front brakes. Its engine is a powerful 2.0-liter four-cylinder with a twin-scroll turbocharger providing 20 pounds of boost for 272 horsepower and 295 lb-ft of torque.

The 6-speed manual or 8-speed automatic transmission pairs nicely with its suspension, granting smooth handling and minimal body roll-around curves. There’s no denying the ATS is a great car that won’t go unnoticed.

BMW 2 Series

Starting Price: 230i Coupe: $35,900

The BMW 2 Series allows enthusiasts to experience the famous Bavarian brand without breaking the bank. For a price under $40K, buyers can choose between the 230i Coupe or the 230i XDrive Coupe.

While the backseat may be cramped, and the list of standard features may be limited, the 2 Series still boasts quality craftsmanship in its cabin and body.

The driving experience is pure, and the design aesthetic is more pristine than other modern Bimmers, making it a popular choice among enthusiasts. Despite its compact size, the 2 Series offers a luxurious driving experience without sacrificing quality.

The BMW 230i twins boast a powerful 2.0-liter turbocharged four-cylinder engine, delivering sporty acceleration and a thrilling driving experience. The well-balanced chassis adds to the driving pleasure, making this a top choice for those looking for a fun drive.

Unfortunately, the option for a 6-speed manual transmission is not available if you opt for BMW’s all-wheel-drive system, xDrive. However, the 8-speed automatic transmission comes equipped with paddle shifters, offering a degree of control and customization.

Lexus IS

Starting Price: $39,850

The Lexus IS is a go-to car for those who need luxury but don’t want to pay the price. With a starting MSRP of just under $40,000, you get a level of dependability and performance that other vehicles in the same price bracket simply cannot match.

The comfortable interior and ample features make the IS a joy to ride in.

The exterior is aggressive, while the engine and transmission work together seamlessly to make every journey smooth. You can rest easy knowing that the IS won’t need constant repair or maintenance, and it’s a car that will go the distance at an affordable price.

The Lexus IS effortlessly delivers luxury for a fraction of the cost. Its sleek exterior with an aggressive front fascia speaks to performance and power, while the interior is plush and comfortable.

The engine and transmission are harmoniously in sync to ensure your journey is smooth and uninterrupted. Add to that its dependability and low maintenance costs, and you have a car ready to go the distance without breaking the bank.

READ: 5 Most Expensive Lamborghinis in the World

Acura TLX

Starting Price: $39,650

The Acura TLX is an excellent option for luxury car shoppers looking to stay under 40K. It comes with a 3.5-liter V6 engine which supplies 290 horsepower, while Super Handling All-Wheel Drive (SH-AWD) is an optional addition that adds excitement to everyday driving.

For those who are content with the four-cylinder engine, the TLX’s options list offers plenty of techs, such as turn-by-turn navigation, rain-sensing wipers, HD radio, GPS-linked climate control, and rear cross-traffic monitoring.

Although the interior materials may not match its competitors, its small footprint provides ample interior space and an accommodating trunk.

Audi A3

Starting Price: $34,900

The Audi A3 is a compact sedan that boasts Audi’s hallmark handling excellence. With Quattro all-wheel drive available on all trims except the top one, the A3 is a perfect blend of performance and affordability.

The turbocharged 2.0-liter engine provides 186 horsepower, making it an enjoyable ride for those who love twisting roads. The interior of the A3 is well-appointed with premium materials and an easy-to-use infotainment system that includes mobile WiFi.

However, it falls short in the rear seat space and road noise at high speeds. Despite its imperfections, the Audi A3 is a fun-to-drive car worth considering for those who prioritize driving dynamics.

Mercedes-Benz GLA

Starting Price: $36,400

The Mercedes-Benz GLA stands out among SUVs and caters to a specific market seeking a hands-off driving experience and ample cargo space.

With a budget of $40,000, you can choose between the two-wheel drive or 4Matic options, both of which are powered by a turbocharged 2.0-liter four-cylinder engine delivering 208 horsepower and 258 lb-ft of torque.

Despite its small engine, the GLA’s impressive tuning and gear ratios make for a sporty and engaging drive. The GLA will perform easily when navigating the city streets or hitting the trails.

Safety features are a hallmark of the Mercedes brand, and the GLA is no exception. LED headlights and taillights provide bright illumination, while radar sensors alert you to obstacles in front and behind and detect drowsy driving.

Unfortunately, the GLA’s sleek profile takes a toll on headroom and cargo space in the back seat. Still, the interior is a luxurious space, complete with top-notch materials and impeccable design. The superior insulation also keeps the cabin whisper-quiet even at high speeds.

Mercedes‑Benz A‑Class

Starting Price: $33,950

The Mercedes-Benz A-Class stands out as a compact luxury sedan, balancing powerful performance with an eye-catching exterior and an elegant cabin.

With a starting price of $37,000, the popular A 220 4MATIC comes equipped with a 2.0L turbocharged engine and All-Wheel Drive, delivering an estimated 25 MPG in the city and 35 MPG on the highway. The A-Class, however, is not without its trade-offs.

The compact size may not be suitable for those who frequently travel with passengers, as the back seats and trunk offer limited space.

But for those who value style and performance, the Mercedes-Benz A-Class is a top choice. Its quick reflexes, responsive handling, and brisk acceleration make it a joy to drive. Despite the limited passenger space, owning a Mercedes-Benz has a certain prestige that is hard to beat.

While the Audi A3 and BMW 2 Series offer similar packages, few cars can match the flair of a Mercedes-Benz. While there are more spacious and feature-rich alternatives in the same price range, none can match the allure of this compact luxury sedan.

The Lincoln Corsair

Starting price $40,225

The Lincoln Corsair is a fancy but affordable small SUV that feels smooth to drive and keeps things quiet and comfy inside.

Starting at just over $40,000, it’s a bit of a splurge but gives you a taste of luxury with its sleek look and nice interior touches, making it worth the extra bucks for a nicer ride.

Infiniti Q50

Starting price $42,650

The 2023 Infiniti Q50 is a sleek and luxurious sedan that maintains its style and appeal with a range of trim levels, including Luxe, Sensory, and the powerful Red Sport 400.

It’s equipped with modern amenities like heated leather seats, advanced navigation systems, and an impressive twin-turbo V6 engine in the top-tier Red Sport 400.

Volvo S60

Starting price $43,095

The 2023 Volvo S60 is a 4-door mid-size sedan with a sleek Scandinavian design. The interior is clean and uses natural materials, with options for leather-free seating and a unique Swedish crystal gear shifter.

It has an advanced air purification system to keep the inside air clean and a modern infotainment system with Google apps. You can choose from plug-in hybrids with strong horsepower or mild hybrids for better fuel efficiency. The S60 combines comfort, technology, and eco-friendly features.

Conclusion

The best luxury cars under 40k may vary based on individual needs and preferences. While some may prefer the fuel efficiency of a hybrid, others might value the powerful performance of a sporty coupe.

An impressive range of options is available at this price point, ranging from four-door sedans to crossover SUVs. With some research and shopping, you can find a luxurious car that fits your budget and meets your driving needs.

10 Best Luxury Cars Under $40,000 (2024 Guide!) - Dollarsanity (2024)

FAQs

What is the most affordable and reliable luxury car? ›

Cheapest Luxury Cars
  • 2024 Acura Integra. MSRP: As low as $32,995. Positives. ...
  • 2024 Cadillac CT4. MSRP: As low as $35,990. Positives. ...
  • 2024 Audi A3. MSRP: As low as $36,895. Positives. ...
  • 2024 BMW 2 Series. MSRP: As low as $39,395. Positives. ...
  • 2024 Cadillac CT5. MSRP: As low as $39,790. Positives. ...
  • 2024 Lexus IS. MSRP: As low as $41,235.

What is the best luxury car for the money? ›

Best Midsize Luxury Cars for the Money
  • 2024 Acura TLX. Compare Model. Positives. ...
  • 2024 Lexus ES. Compare Model. Positives. ...
  • 2025 Genesis G70. Compare Model. Combined Mileage: 19 - 24 mpg. ...
  • 2024 Cadillac CT5‑V. Compare Model. Positives. ...
  • 2024 Volvo V60 Cross Country. Compare Model. Positives. ...
  • 2024 BMW 5 Series. Compare Model. Positives.

What's the best car to buy for 40K? ›

Best Cars Under $40K
  • 2025 MINI Hardtop. Compare Model. Positives. Fun to drive. ...
  • 2024 Toyota Prius. Compare Model. Positives. ...
  • 2024 Honda Accord. Compare Model. Positives. ...
  • 2024 Toyota Prius Prime. Compare Model. Positives. ...
  • 2024 Ford Mustang. Compare Model. Positives. ...
  • 2024 Hyundai IONIQ 6. Compare Model. Positives.

What is the No 1 luxurious car in the world? ›

Rolls-Royce La Rose Noire Droptail is the world's most expensive car, priced at $30 million (Rs. 211 crore approx).

Which luxury car has the least problems? ›

2021 Lexus ES - Most Reliable Luxury Cars

Spacious, quiet, and comfortable, the Lexus ES makes for relaxing everyday transportation. Choosing a hybrid model brings great fuel economy. Its cabin is built to a high standard of quality, but the 2021 model is stuck with the automaker's old, clumsy infotainment system.

Which luxury car has low maintenance? ›

What are some of the best luxury cars for long-term ownership and low maintenance costs? The Volvo XC90, Audi A4, and the BMW 3 Series are some of the best luxury cars for long-term ownership and low maintenance costs.

Which luxury car lasts the longest? ›

Most Reliable Luxury Cars
Top 10 Most Reliable Luxury Cars - iSeeCars
RankLuxury CariSeeCars Reliability Score
1Lexus IS 3508.9
2Lexus ES 3508.9
3Mercedes-Benz S-Class8.7
7 more rows
Feb 3, 2023

What is the #1 selling luxury car in America? ›

The Lexus RX SUV is the best-selling luxury car in America for 2022. Lexus sold 96,041 examples of the RX in 2022 including both gas and hybrid models. What Is The #1 Selling Luxury Brand In America? Tesla sold the most cars in 2022 of any other luxury manufacturer.

Which luxury car brand holds the most value? ›

Luxury Vehicles with the Best Resale Value
  • 2023 Mercedes-Benz AMG G 63 SUV. ...
  • 2023 Mercedes-Benz AMG E 63 S Wagon. ...
  • 2022 Mercedes-Benz G 550 SUV. ...
  • 2023 Land Rover Range Rover Autobiography 7 Seat. ...
  • 2016 Porsche Boxster Spyder. ...
  • 2016 Porsche Cayman GT4. ...
  • 2020 Porsche 911 Carrera 4S. ...
  • 2018 Porsche 911 GT3.

What vehicle do most millionaires drive? ›

The top 10 car brands driven by millionaires, according to a Ramsey post on X (formerly Twitter) are:
  1. Toyota. The average price for a Toyota went up to $38,198 in the automaker's second quarter of its 2024 fiscal year, according to Carsdirect, citing Cox Automotive data.
  2. Honda. ...
  3. Ford. ...
  4. Lexus. ...
  5. Subaru. ...
  6. BMW. ...
  7. Acura. ...
  8. Hyundai.
Apr 5, 2024

How much should you pay for a car if you make 40K a year? ›

It depends on how much income you have after your bills and expenses. But as a rule of thumb, your car payment should not exceed 15% of your post-tax monthly pay. For example, if after taxes, you make the U.S. median income of $37,773, you could shop for a car that costs up to $472 per month.

What color car looks most luxurious? ›

Neutral colors like white, black, silver, and gray are consistently associated with luxury and elite social status. They are elegant and often considered “classy,” at least compared to “loud” car colors like yellow and red. When considering practicality, sliver and gray hues are much easier to keep clean.

What is the most popular luxury car right now? ›

10 Most Popular Luxury Cars
  • BMW 3 Series (44,578) - Find the best BMW deals! ...
  • Mercedes-Benz E-Class (44,772) - Find the best Mercedes-Benz deals! ...
  • Mercedes-Benz C-Class (46,986) - Find the best Mercedes-Benz deals! ...
  • Lexus ES (48,492) - Find the best Lexus deals! ...
  • Tesla Model 3 (122,853) - Find the best Tesla deals!
May 17, 2019

What is the most reliable luxury car make? ›

The most reliable luxury small and compact car is the Lexus IS 350 (9.0 reliability rating), with the Lexus ES 250 being the most reliable luxury midsize car (9.2 reliability rating). The Audi A8 L ranks #1 for the most reliable luxury large cars (8.2 reliability rating).

What is the most reliable used luxury car brand? ›

13 Best Used Luxury Cars in 2023
  • Hyundai Motor America| The Best Luxury Cars for Less. ...
  • Audi of America, Inc. 2019 Audi Q7. ...
  • BMW of North America, LLC| 2019 BMW X1. ...
  • Volvo Cars of North America| 2019 Volvo XC40. ...
  • BMW of North America, LLC| 2019 BMW 5 Series. ...
  • Audi of America, Inc. ...
  • BMW of North America, LLC| ...
  • Hyundai Motor America|

What is the most reliable high end car brand? ›

#1 Most Reliable Car Brand: Lexus

The automaker's entry-level-yet-engaging IS and relaxing ES sedans rank among this year's most dependable luxury cars.

What is an entry level luxury car? ›

Sedans. The entry point of the luxury-vehicle range resides with models such as the Acura Integra, Audi A3, BMW 2 Series, and Mercedes-Benz CLA.

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