Buying Guides

The 5 Cheapest Luxury Cars You Can Buy

Drive like six figures while spending only five

Jane Ulitskaya, Digital Content Specialist

A luxury badge invokes thoughts of sophisticated styling, high-level performance, and ultimate comfort. It also brings to mind a price tag that's out of reach for the average Joe. Luckily, head-turning style, heart-racing performance, and premium features don't have to break the bank. Entry-level vehicles from premium brands like Acura, Lexus, Mercedes, Audi, and Volvo offer the benefits of a luxury vehicle at an attainable price. Ranked from least to most expensive, the following five vehicles have a starting MSRP which falls far below the average new car price of $38,000.

2021 Acura ILX

 
  • PROS: Lowest base price for a luxury vehicle, good fuel economy, smooth ride, comfortable and spacious front row.
  • CONS: Tight rear seats, out of date infotainment system.

The Acura ILX is the most affordable vehicle on our list with a starting MSRP of just $25,950. It's an excellent value thanks to its comfortable ride and ample standard features. All ILX models come with a 201-horsepower 2.4-liter four-cylinder engine and an eight-speed automatic transmission. When it comes to performance, what the Acura ILX lacks in sportiness, it makes up for in practicality. The ILX offers a smooth ride, agile handling, and solid fuel economy numbers of 24 mpg in the city and 34 mpg on the highway. It's packed with standard features including a sunroof, heated sport seats with power adjustments for the driver, and dual-zone automatic climate control. This subcompact sedan has ample room for the driver and front passenger, but backseat passengers will find themselves cramped in the tight second row.

2021 Lexus UX

Best

for Small families

  • PROS: Sporty driving dynamics, well-executed interior, unique exterior styling.
  • CONS: No AWD option for the gas model, cramped back row, artificial engine sounds are strange.

Lexus introduced the entry-level UX in 2018, and it has since proven to be a strong contender among the luxury subcompact crossover segment. At a starting price of $32,900, the UX makes an excellent city crossover for a small family thanks to sporty driving dynamics and a competent 169-horsepower 2.0-liter four-cylinder. Its modern styling starts with an aggressive front grille and continues to the rear with a sleek single bar LED taillight. Despite its small size, the UX's ergonomic cabin offers supportive and cushioned seats. As for creature comforts, the base trim comes with a standard leather-trimmed steering wheel and shift knob, eight-way power-adjustable front seats with two-way driver lumbar support, and dual-zone climate control. For added comfort and convenience, a heated steering wheel and a power rear door with a kick sensor are optional.

2020 Audi A3

 
  • PROS: Stylish cabin, punchy engine, generous standard features, user-friendly infotainment.
  • CONS: Styling is getting dated, tight cabin, small trunk.

Due to its compact size and tight cargo space, we wouldn't recommend the Audi A3 for drivers with large families or a lot of gear to haul. On the other hand, if you're looking for a small, fun-to-drive sedan, the A3 fits just right. For a starting MSRP of $33,300, drivers enjoy the A3's lively handling and peppy acceleration. Several engine options are available, and even the base turbocharged 2.0-liter four-cylinder offers ample power with its 184 horses. The A3's cabin is minimalistic yet it's infused with classic Audi style and premium materials. Audi doesn't shortchange its base trim when it comes to standard features. The A3 Premium gets a 10-speaker audio system, satellite radio, a panoramic sunroof, dual-zone automatic climate control, leather seats, heated front seats, an eight-way power-adjustable driver’s seat with power lumbar adjustment, and heated side mirrors.

2021 Mercedes-Benz A-Class

Best

for Driving enthusiasts

  • PROS: Excellent fuel economy, impressive cabin, peppy engine.
  • CONS: Small trunk, cramped back row, ride can be harsh.

The Mercedes-Benz A-Class proves that buying an entry-level luxury vehicle doesn't have to mean sacrifice. Even though it's small, the base A 220 packs a laundry list of standard features including a panoramic sunroof, eight-way power-adjustable front seats, simulated leather upholstery, and dual-zone automatic climate control. With a starting price of $33,650, the A-Class is both fun to drive, and efficient. The base model comes with a 2.0-liter turbocharged four-cylinder engine that makes 188 horsepower and offers surprisingly punchy acceleration. Driving thrills come courtesy of the responsive steering, firm suspension, and a smooth transmission which can fool the driver into thinking they're behind the wheel of a much pricier vehicle. The A-Class' competitive fuel economy is an EPA-estimated 25 mpg in the city and 36 mpg on the highway.

2021 Volvo XC40

Best

for Hip city dwellers

  • PROS: Delivers on driving thrills, premium and spacious cabin, youthful and unique styling.
  • CONS: Lagging infotainment system, poor gas mileage.

Luxury crossover shoppers on a budget shouldn't pass up the 2021 Volvo XC40. We found that the smallest crossover in Volvo's lineup is also the most fun to drive. The XC40 offers the best steering in the Volvo crossover family along with excellent handling and strong brakes. Powered by a 2.0-liter turbocharged four-cylinder, the XC40's base model gets a respectable 184 horsepower for confident acceleration. The Volvo XC40 starts at $33,700, and unlike the preceding vehicles on our list, it isn't lacking in either passenger or cargo space. Volvo has added even more standard features for 2021 which include: blind-spot monitoring, rear-cross-traffic alert, leather upholstery, adaptive LED headlamps, power-folding exterior mirrors with an auto-dimming function, and rear parking sensors.

What makes a good entry-level luxury vehicle?

  • Upscale cabin filled with creature comforts
  • Well-equipped base trim
  • Competent powertrain
  • Sleek exterior styling