The 11 Best Luxury Cars Under $40,000

April 24, 2023
7 min read

When it comes down to it, luxury isn't usually cheap. Driving off of the lot in a premium luxury vehicle will usually cost you a pretty penny. However, you may be pleased to find out that there are actually an array of luxury vehicles on the market priced well under $40,000. For instance, many popular luxury vehicles from Mercedes and Audi have starting prices in the $30,000 range. Moreover, some of the highest-ranking luxury vehicles offer entry-level prices in their base trims under $35,000 (1).

The 11 Best Luxury Cars Under $40,000

Benefits of Owning a Luxury Vehicle

There are many benefits to driving a luxury vehicle. They're stylish, accommodating, and appealing. Moreover, luxury vehicles often offer better performance, more driver amenities, and a range of upgraded standard features. Top luxury vehicles often come with features like heated leather seats, premium audio systems, infotainment and connectivity systems, and superior safety technology. Unlike base mainstream models, they also usually come better equipped in their lower trim levels.

Luxury Vehicles Can Offer Better Overall Value

Considering that many standard non-luxury mainstream cars cost well over $30,000 new, you can actually get better value on a luxury vehicle if you know what you're doing. This is because, with certain mainstream cars, you will have to upgrade to higher trim levels to access premium features. As such, you could realistically save a significant amount of money on a luxury vehicle if you shop smart. Instead of upgrading to a higher trim, you can get all of the convenience features and amenities you're looking for right off the bat in a lower trim level. Furthermore, luxury vehicles are often easier to sell or trade when the time comes.

With all of this in mind, check out the following list of the 11 impressive luxury vehicles with starting prices under $40,000 (2).

1. The 2021 Mercedes-Benz GLA

Completely redesigned for 2021, the Mercedes-Benz GLA comes as a crossover hatchback. This Mercedes drips swagger and style with a multitude of premium features and driver amenities. It has a sporty stance while also offering comfort and aesthetic appeal in droves. The upgraded GLA 4Matic even comes equipped with a four-wheel-drive powertrain for those tricky roadway conditions. With the 2021 redesign, you'll also get more rear-seating space with nearly five extra inches of legroom as well as increased shoulders and elbow room. This vehicle offers a silky-smooth ride, quality materials, one of the most advanced infotainment systems available. Not to mention its competitively affordable luxury price tag (3).

2. The 2020 Audi A3

Next up is the 2020 Audi A3. This little luxury sedan has been topping the charts in the competitive small car segment all year. Some of its most notable features include strong engine options, precision handling, impressive safety ratings, and standardly equipped driver and passenger amenities. The 2020 A3 also offers comfortable seats and a roomy rear row. Other standard features include heated seats, leather upholstery, a panoramic sunroof, and driver assistance aids like brake assist and forward-collision warnings. This car also comes standardly fitted with a large 7-inch infotainment interface that works with Android Auto and Apple CarPlay. Premium trims come with features like ambient interior lighting, push-button start, and more. It also comes available with an array of designer paint colors (4).

3. The 2020 Lincoln MKZ

The 2020 Lincoln MKZ has a plush ride, spacious cargo capacity, and impressive crash test scores. It also comes standardly equipped with various amenities. These include a Wi-Fi hot spot, an accommodating and intuitive 8-inch touch screen infotainment system, and easy smartphone connectivity. This car also comes with Lincoln MyKey driver monitoring technology. Then, its Co-Pilot 360 suite showcases advanced driver-assist technologies. While its cabin isn't as fancy as some of its competitors, the price is definitely right. It also has a base turbo-four engine and an available twin-turbo V6 power package. All in all, this is a well-equipped option with quick acceleration and a spacious trunk.

4. The 2021 Buick Encore GX

As the newest SUV in Buick's lineup, the 2021 Encore GX is larger than previous Encore editions. It comes with two engine and transmission choices and optional all-wheel drive. Smartphone connectivity comes standard and it has a nice infotainment system. Plus, you can get this SUV fully loaded without going over your budget. This is easily one of the best luxuriously styled SUVs for families. It's well-rounded and accommodating and comes at a comparatively affordable luxury price (5).

5. The 2020 Cadillac CT4

Boldly styled and refined, the 2020 Cadillac CT4 stands out in its segment. It comes with loads of turbocharged power and has a balanced design. You can choose between all-wheel drive and rear-wheel drive configurations as well. It has nimble handling and plenty of modern upgrades. In fact, its infotainment features are some of the most impressive available for the 2020 model year. As such, it's a great value for the money and should definitely be on your list of vehicles to look into.

6. The 2020 Buick Envision

As one of the most spacious crossovers in its respective class, the 2020 Buick Envision offers you tons of luxurious comfort and passenger room. Its compact and thoughtfully tailored design makes it a great value for the money. This is a contemporary, ergonomic, and aesthetically appealing SUV in every sense. It comes with a user-friendly infotainment interface and soft plush seats as well. Then, this SUV offers an exceptionally quiet and smooth ride. So, if you want a great balance of luxury and accommodating space, the 2020 Buick Envision is well worth looking into.

7. The 2021 Acura ILX

If you want an accommodating affordable luxury car that's really fun to drive, the 2021 Acura ILX may be worth considering. This compact sedan has a thrifty 4-cylinder engine that sips fuel politely to save you money at the gas pump. It also comes with impressive warranty coverage that adds to its value. Key features include spacious front seats, various desirable standard features, and notable savings. Plus, you can get this car fully loaded in its highest trim while still staying within your budget. This is a fantastic little sedan for drivers who want luxurious options, economic performance, and unparalleled long-term value.

8. 2021 Infiniti Q50

Delivering everything you could want in a small sports sedan, the 2021 Infiniti Q50 comes with plenty of punchy power under the hood. Then, it offers an array of interior amenities to give you a great balance of power and luxury. An available 400-horsepower twin-turbo engine lets you take things up a notch. Also, it has a tuned suspension that adapts to your driving style. Whether you’re driving in town or on the highway, the 2021 Q50 leaves an impression or premium quality. It showcases a chiseled, athletic design and artful luxury details inside and out. Overall, the 2021 Infiniti Q50 gives you plenty of bang for your buck.

9. The 2021 Lexus UX

Even though this is an entry-level Lexus, this SUV delivers plenty of premium luxury and an impressive driving experience. It has an edgy design and exceptional fuel economy. This is especially true if you opt for the hybrid option. Since it's priced well under $40,000, you can definitely drive home in the 2021 Lexus UX without overspending.

10. The 2021 Mercedes-Benz A-Class

With an affordable starting price and many accommodating features, the 2021 Mercedes-Benz A-Class is another fantastic option to look into. It comes with impressive infotainment features and various modern technology upgrades. Furthermore, you can stay within your budget without sacrificing style or luxury appeal.

11. The 2021 Volvo XC40

As the company’s tiniest crossover, the 2021 Volvo XC40 comes with various impressive features and amenities. On top of that, this is a very safe vehicle. It has a unique look at an awesome standard stereo system as well. Then, its sustainable materials make it really stand out in its respective class. If you want a small crossover that really delivers and comes at a great price, this is a good option to investigate.

Wrapping Things Up

SO there you have it! Now that you have a better idea of what's out there, you can more easily shop luxury vehicles and save. Overall, choosing a luxury maker can allow you to save money on trim upgrades and specialty auto packages while still allowing you to access an array of premium features.


10 Best Luxury Cars Under $35,000, Kelley Blue Book,
The Best Luxury SUVs Under $40 in 2021, Cars US News,
2021 Mercedes-Benz GLA-Class, Car and Driver,
The 2020 Audi A3 Sedan, Forbes,
2021 Buick Encore GX, Kelley Blue Book,

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