Best Luxury Sedans Under $40K

We sifted through the data to select the best cars and trucks in every category.

2021 Acura TLX

Overview

This midsize sedan has a comfortable, luxurious interior with turbocharged engines that make driving fun. Rear seat space is tight, and the driver interface lacks a touchscreen, but the Acura TLX delivers a premium drive experience that makes it a solid pick. The Acura TLX is a 5-seater vehicle that comes in 6 trim levels. The most popular style is the Standard FWD, which starts at $38,545 and comes with a 2.0L I4 Turbo engine and Front Wheel Drive. This TLX is estimated to deliver 22 MPG in the city and 31 MPG on the highway.

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Pros

Responsive turbocharged engines
Comfortable ride
High-quality interior

Cons

Cramped rear seats
Tricky infotainment system

Overall Assessment

The Acura TLX is a midsize sedan with seating for five people. Acura is a luxury brand and the TLX fits that label with standard heated seats, dual-zone automatic climate control, and ambient lighting, which are optional on more affordable sedans. While the front seats are roomy, the backseat space is too tight for frequent use. However, the TLX is quite fun to drive, with turbocharged engines and a choice of front-wheel or all-wheel drive for rough weather. The performance-oriented Type S trim has a more powerful engine that's worth the sacrifice in fuel economy. Sedans aren't as popular as they were years ago, but spend a few minutes behind the wheel of the TLX and you will find plenty of reasons to buy one. The Audi A6 offers the choice of a sedan or a wagon with loads of high-tech features at a higher starting price. The Volvo S60 delivers a premium experience with a more minimalist design. The Cadillac CT5 is comparably priced and delivers semi-autonomous driving with the addition of Super Cruise.

Starting MSRP

$38,545

Starting MktMarket Avg.

$38,571

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Feature Highlights

Pedestrian Detection

Start/Stop System

Adaptive Cruise Control

In-Car WiFi

Forward Collision Warning

Android Auto

Apple CarPlay

Lane Keep Assist

Front Heated Seats

4 yr / 50k mi Basic Warranty

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See owner reviews for Acura TLX. All reviews

Pros

Responsive turbocharged engines
Comfortable ride
High-quality interior

Cons

Cramped rear seats
Tricky infotainment system

Overall Assessment

2021 Volvo S60

Overview

Volvo's safety innovations make their way into the spacious and comfortable S60 sedan. While it is not as focused on sporty handling as German competitors, the S60 offers one of the most beautiful interiors in its class, with rich materials and a quiet ride. Fun isn't out of the question; Volvo offers plug-in hybrid engines producing over 400 hp. But the S60 remains best-suited for daily driving bliss, with safety tech for extra peace of mind. The Volvo S60 is a 5-seater vehicle that comes in 7 trim levels. The most popular style is the T5 Momentum FWD, which starts at $39,995 and comes with a 2.0L I4 Turbo engine and Front Wheel Drive. This S60 is estimated to deliver 23 MPG in the city and 34 MPG on the highway.

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Pros

Elegant exterior design
Beautiful interior with great seats
Impressive standard safety features
Blends secure handling with a quiet ride

Cons

Not as sporty to drive as rivals
Limited cargo capacity

Overall Assessment

Shoppers in the market for a compact luxury car should add the Volvo S60 to their test-drive list. It comes with one of the most comfortable interiors in its class, crafted from high-quality materials and displaying meticulous attention to detail. The seats are very comfortable. Volvo also includes a nice blend of technology and safety features on each level, and a potent plug-in hybrid powertrain is available for those wanting a bit of performance. The S60 feels stable at speed, but it lacks the razor-sharp handling of sports sedans in its class. Despite that, it provides comfortable and safety-focused transportation for the family that is hard to match.

Starting MSRP

$39,995

Starting MktMarket Avg.

Avg. savings of $4,178
off MSRP

$35,817

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Feature Highlights

Pedestrian Detection

Curve Adaptive Headlamps

Panoramic Moonroof

In-Car WiFi

Forward Collision Warning

Android Auto

Apple CarPlay

Remote Engine Start

Rear Parking Sensors

4 yr / 50k mi Basic Warranty

See full specs

See owner reviews for Volvo S60. All reviews

Pros

Elegant exterior design
Beautiful interior with great seats
Impressive standard safety features
Blends secure handling with a quiet ride

Cons

Not as sporty to drive as rivals
Limited cargo capacity

Overall Assessment

2021 Cadillac CT4

Overview

The smaller of Cadillac's two luxury sedans, the CT4 is a modern four-door for those wanting a sporty yet comfortable driving experience. Costing less than European competitors, it offers two turbocharged engine choices and agile handling, plus a comfortable ride and standard safety features. The snug interior is driver-oriented with straightforward controls for easy operation. Cadillac's Super Cruise semi-autonomous driving tech is available. The Cadillac CT4 is a 5-seater vehicle that comes in 4 trim levels. The most popular style is the Premium Luxury, which starts at $38,790 and comes with a 2.0L I4 Turbo engine and Rear Wheel Drive. This CT4 is estimated to deliver 23 MPG in the city and 34 MPG on the highway.

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Pros

Attractive exterior styling
Smooth ride balanced by agile handling
V-Series trim's quick acceleration

Cons

Inexpensive-looking cabin materials
Limited rear-seat space

Overall Assessment

The Cadillac CT4 is a handsome and capable sports sedan that leans more towards comfort than speed. Handling is agile and secure, providing the driver with engaging dynamics on twisty back roads and windy canyons. It's not as quick as European competitors, and it works best as a luxury cruiser. The CT4's ride is smooth and polished, and the interior remains quiet at speed. Traffic is no longer an issue with the optional Super Cruise system, and GM's infotainment system is one of the easiest to operate. The CT4 falls short in rear-seat space and in-cabin storage, two areas that impact its practicality as a family vehicle. But for those shoppers who don't mind sacrificing some roominess for an elegant daily driver, the Cadillac CT4 is undoubtedly worth a look.

$38,790 as shown

Starting MSRP

$34,590

Starting MktMarket Avg.

$34,735

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Feature Highlights

Pedestrian Detection

Start/Stop System

In-Car WiFi

Forward Collision Warning

Android Auto

Apple CarPlay

Remote Engine Start

Rear Parking Sensors

Integrated Turn Signal Mirrors

4 yr / 50k mi Basic Warranty

See full specs

See owner reviews for Cadillac CT4. All reviews

Pros

Attractive exterior styling
Smooth ride balanced by agile handling
V-Series trim's quick acceleration

Cons

Inexpensive-looking cabin materials
Limited rear-seat space

Overall Assessment

2021 Mercedes-Benz A-Class

Overview

The Mercedes-Benz A-Class is a subcompact sports sedan that puts the German brand's trademark comfort and commitment to quality within reach of a mainstream audience. Its reasonable starting price includes a sporty powertrain and fun-to-drive dynamics. Under the sleek exterior, the cabin feels like a pint-sized luxury sedan. A range of optional amenities allows buyers to personalize the car to their tastes, capping the Mercedes-Benz experience. The Mercedes-Benz A-Class is a 5-seater vehicle that comes in 2 trim levels. The most popular style is the A 220 4MATIC, which starts at $36,700 and comes with a 2.0L I4 Turbo engine and All Wheel Drive. This A-Class is estimated to deliver 25 MPG in the city and 34 MPG on the highway.

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Pros

Posh luxury at competitive pricing
Torquey engine and sporty handling
Spacious cabin packed with features

Cons

Small trunk size
Some rivals are faster
Pricey optional features

Overall Assessment

Sporty and sophisticated, the A-Class exhibits all of the best aspects of a Mercedes-Benz in a small and adorable sedan. It's a great first step for those who have always wanted to step into three-pointed star ownership. The A-Class has ready engine power and an agile suspension for everything from fun weekend drives or maneuvering around town. Pack light, though -- the A-Class has a tiny trunk. The cabin is spacious, with comfortable seats and generous standard features. Mercedes-Benz provides numerous ways to configure the car to your tastes. Some competitors have faster driving performance, but for its price, the A-Class is unmatched in how effortlessly it blends sportiness with luxury.

Starting MSRP

$34,700

Starting MktMarket Avg.

Avg. savings of $234
off MSRP

$34,466

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Feature Highlights

Pedestrian Detection

Panoramic Moonroof

Forward Collision Warning

Android Auto

Apple CarPlay

Remote Engine Start

Blind Spot System

Integrated Turn Signal Mirrors

Keyless Ignition

4 yr / 50k mi Basic Warranty

See full specs

See owner reviews for Mercedes-Benz A-Class. All reviews

Pros

Posh luxury at competitive pricing
Torquey engine and sporty handling
Spacious cabin packed with features

Cons

Small trunk size
Some rivals are faster
Pricey optional features

Overall Assessment

2022 Genesis G70

Overview

A true premium luxury sedan, the Genesis G70 delivers style, luxury, and performance similar to its European competition at a huge discount, and it comes with the best warranty coverage in the segment. The Genesis G70 is a 5-seater vehicle that comes in 3 trim levels. The most popular style is the 2.0T RWD, which starts at $38,570 and comes with a 2.0L I4 Turbo engine and Rear Wheel Drive. This G70 is estimated to deliver 21 MPG in the city and 31 MPG on the highway.

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Pros

Gorgeous interior
Engaging mix of ride and handling
Impressive standard driver-assistive safety tech

Cons

Smallish trunk
Rear seat short on legroom
Base four-cylinder is less powerful than major rivals

Overall Assessment

The Genesis G70 is the smallest and best-selling entry of three premium sedans offered by Hyundai's quickly growing luxury brand. It competes head-to-head with such long-standing entry-luxury sedan favorites as the BMW 3 Series, Mercedes-Benz C-Class, Audi A5, and Lexus IS. It offers evocative design, a luxurious interior, and a long list of amenities that often cost extra in competing European-brand models. The G70 also leads the segment with advanced safety and driver-assistive technology.

The G70 delivers an engaging driving experience with nicely balanced ride and handling. Although the base G70 2.0T four-cylinder won't match the acceleration response and fuel economy of its 3 Series competitor, the small Genesis is fun to drive in both rear- and all-wheel-drive form. It also costs less than its European rivals, is comparably equipped, and comes with a much stronger warranty: 10 years or 100,000 miles on the powertrain and 5 years or 60,000 miles bumper to bumper, plus three years of free scheduled maintenance.

Starting MSRP

$38,570

Starting MktMarket Avg.

Avg. savings of $171
off MSRP

$38,399

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Feature Highlights

Power Doors

Pedestrian Detection

Start/Stop System

Hands-free Trunk/Liftgate

Power Trunk/Liftgate

Adaptive Cruise Control w/Stop and Go

Forward Collision Warning

Android Auto

Apple CarPlay

5 yr / 60k mi Basic Warranty

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See owner reviews for Genesis G70. All reviews

Pros

Gorgeous interior
Engaging mix of ride and handling
Impressive standard driver-assistive safety tech

Cons

Smallish trunk
Rear seat short on legroom
Base four-cylinder is less powerful than major rivals

Overall Assessment

2021 Cadillac CT5

Overview

A midsize luxury sedan with an entry-level price, the Cadillac CT5 is neither a sport sedan nor a luxury cruiser. If you require a middle-of-the-road sedan with solid performance, modern technology, and all-wheel drive, the CT5 is sure to satisfy. The Cadillac CT5 is a 5-seater vehicle that comes in 4 trim levels. The most popular style is the Luxury, which starts at $38,190 and comes with a 2.0L I4 Turbo engine and Rear Wheel Drive. This CT5 is estimated to deliver 23 MPG in the city and 32 MPG on the highway.

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Pros

Competitive price
All-wheel drive available on all trims
Intuitive infotainment system

Cons

Some cheap-looking interior materials
Small trunk

Overall Assessment

High-riding crossovers may dominate the market, but that hasn't stopped Cadillac from leaning into sedans. The luxury automaker followed up its out-of-production ATS and CTS sedans with Cadillac CT4 and Cadillac CT5 successors, respectively.

The 2021 CT5 is a midsize sedan that features significant performance and tech updates, including new engines and a 10-speed automatic. All CT5s have the latest in onboard technology, including wireless Apple CarPlay and Android Auto connectivity. Premium Luxury, Sport and V-Series models optioned with the Technology package get a new reconfigurable 12-inch high-definition (HD) gauge cluster. But by far, the most significant tech advancement available in the new CT5 is Super Cruise. In addition to providing hands-free driving capability on more than 200,000 miles of U.S. and Canadian highways, the latest iteration of Super Cruise changes lanes on demand.

Although the CT5 is roughly the size of midsize German sedans such as the Audi A6 and BMW 5 Series, the Cadillac's price point aligns it more closely with the smaller Audi A4 and BMW 3 Series.

Starting MSRP

$38,190

Starting MktMarket Avg.

Avg. savings of $541
off MSRP

$37,649

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Feature Highlights

Pedestrian Detection

Start/Stop System

In-Car WiFi

Android Auto

Apple CarPlay

Remote Engine Start

Integrated Turn Signal Mirrors

Keyless Ignition

Brake Assist

4 yr / 50k mi Basic Warranty

See full specs

See owner reviews for Cadillac CT5. All reviews

Pros

Competitive price
All-wheel drive available on all trims
Intuitive infotainment system

Cons

Some cheap-looking interior materials
Small trunk

Overall Assessment

Although the CT5 is roughly the size of midsize German sedans such as the Audi A6 and BMW 5 Series, the Cadillac's price point aligns it more closely with the smaller Audi A4 and BMW 3 Series.

2022 Mercedes-Benz CLA

Overview

The Mercedes CLA measures up to the luxury brand's reputation with sharp design, strong performance, and a comfortable, upscale interior that's packed with tech features. The Mercedes-Benz CLA is a 5-seater vehicle that comes in 3 trim levels. The most popular style is the CLA 250 FWD, which starts at $39,250 and comes with a 2.0L I4 Turbo engine and Front Wheel Drive. This CLA is estimated to deliver 25 MPG in the city and 35 MPG on the highway.

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Pros

Cool coupe-like exterior
Four-door practicality
Two available high-performance AMG versions

Cons

Complicated infotainment system
Tight rear seat
Not as fuel-efficient as some rivals

Overall Assessment

The Mercedes-Benz CLA may be one of the luxury brand's smallest and most affordable sedans, but it is every inch a Mercedes, with distinctive design, an impeccable interior, robust build quality, and world-class engineering. This is one of the best-looking small sedans on the planet, with a cool coupe-like silhouette and a sporty low and wide stance. Mercedes even calls the CLA a coupe, so don't confuse it with the Mercedes-Benz A-Class sedan, which is smaller, less powerful, and costs about $4,000 less. With a strong 221-horsepower turbocharged engine and well-tuned suspension, the CLA 250 delivers abundant driving pleasure, and the high-performance Mercedes-AMG variants, the CLA 35 and CLA 45, take a decidedly sporting turn. Some may find the CLA's infotainment system to be unnecessarily complex and its rear seat too snug, but overall, it competes very favorably with the two available variants of the BMW 2 Series Gran Coupe as well as the Audi A3, Audi S3, and Audi RS 3.

Starting MSRP

$39,250

Starting MktMarket Avg.

Avg. savings of $272
off MSRP

$38,978

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Feature Highlights

Panoramic Moonroof

Remote Engine Start

Blind Spot System

Integrated Turn Signal Mirrors

Keyless Ignition

Alarm

Brake Assist

Proximity Keyless Entry

Bluetooth

Remote Keyless Entry

See full specs

See owner reviews for Mercedes-Benz CLA. All reviews

Pros

Cool coupe-like exterior
Four-door practicality
Two available high-performance AMG versions

Cons

Complicated infotainment system
Tight rear seat
Not as fuel-efficient as some rivals

Overall Assessment

2021 INFINITI Q50

Overview

The Infiniti Q50 beats rivals when it comes to power, price, and practicality. Although not as sporty or upscale as rival European luxury compact cars, the Q50 is an all-around winner as a daily driver. The INFINITI Q50 is a 5-seater vehicle that comes in 5 trim levels. The most popular style is the 3.0t PURE RWD, which starts at $37,725 and comes with a 3.0L V6 Turbo engine and Rear Wheel Drive. This Q50 is estimated to deliver 20 MPG in the city and 29 MPG on the highway.

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Pros

Powerful engines
Competitive price
Roomy interior

Cons

Less sporty, fuel-efficient, and upscale than other luxury compact cars

Overall Assessment

An alternative to pricey European luxury compact cars, the Infiniti Q50 offers excellent comfort and power at a competitive price. Starting at around $37,000, the Japanese sports sedan has the most powerful standard engine in its class, with its 300-horsepower twin-turbocharged V6. The top-of-the-line Red Sport model is even more potent, delivering 400 horsepower via its twin-turbo V6. Although rivals such as the BMW 3 Series and Mercedes-Benz C-Class boast more technology and better fuel economy, the Q50 remains a solid sedan known for its swift acceleration and one of the roomiest cabins in the segment. Inside, the Q50 features an attractive cabin with plenty of elbow room for five passengers, as well as Apple CarPlay, Android Auto, and a Wi-Fi hotspot.

Starting MSRP

$37,725

Starting MktMarket Avg.

Avg. savings of $3,131
off MSRP

$34,594

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Feature Highlights

In-Car WiFi

Forward Collision Warning

Android Auto

Apple CarPlay

Integrated Turn Signal Mirrors

Fog Lamps

Keyless Ignition

Alarm

Brake Assist

4 yr / 60k mi Basic Warranty

See full specs

See owner reviews for INFINITI Q50. All reviews

Pros

Powerful engines
Competitive price
Roomy interior

Cons

Less sporty, fuel-efficient, and upscale than other luxury compact cars

Overall Assessment

2022 Acura ILX

Overview

The Acura ILX doesn't bother with the costs and complications that afflict many luxury cars. Based on the Honda Civic, the small Acura sedan comes with a base price of just $27,545. Even with standard luxuries like heated leatherette seats and dual-zone climate control, it remains effortlessly easy to operate. It's not the sportiest or most stylish, but the ILX's blend of sensibility and comfort makes it a more than suitable choice. The Acura ILX is a 5-seater vehicle that comes in 4 trim levels. The most popular style is the Premium/A-Spec Package, which starts at $31,545 and comes with a 2.4L I4 engine and Front Wheel Drive. This ILX is estimated to deliver 24 MPG in the city and 34 MPG on the highway.

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Pros

Refined Honda powertrain
Superb seats
Impressive value
No-fuss driving controls

Cons

Outdated cabin styling
Cramped back seat
Not nearly as sporty as rivals

$29,545 as shown

Starting MSRP

$27,545

Starting MktMarket Avg.

$27,643

Build & Price View New Inventory

Feature Highlights

Around View Camera

Adaptive Cruise Control

Forward Collision Warning

Android Auto

Apple CarPlay

Lane Keep Assist

Front Heated Seats

Moonroof

Blind Spot System

4 yr / 50k mi Basic Warranty

See full specs

See owner reviews for Acura ILX. All reviews

Pros

Refined Honda powertrain
Superb seats
Impressive value
No-fuss driving controls

Cons

Outdated cabin styling
Cramped back seat
Not nearly as sporty as rivals

2022 BMW 2 Series

Overview

It's rare these days to find a sports car that's comfortable enough to drive daily, but the BMW 2 Series fits the bill for enthusiasts who don't want to save the fun for weekends only. Available as a two- or four-door coupe, the 2 Series has a refined ride and great standard technology for comfort mile after mile. When it's time for some fun, a turbo motor and nimble suspension allow the 2 Series to carve corners with precision. The BMW 2 Series is a 5-seater vehicle that comes in 2 trim levels. The most popular style is the 228i Gran Coupe FWD, which starts at $36,695 and comes with a 2.0L I4 Turbo engine and Front Wheel Drive. This 2 Series is estimated to deliver 24 MPG in the city and 34 MPG on the highway.