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The Best Luxury Cars Under $40,000

Cadillac ATS

Available as a sporty four-door sedan or a sleek two-door coupe, the ATS is powered by a 272hp, 2.0-liter engine with rear-wheel drive and the option of all-wheel drive. It’s packed with the latest features and has the comfort levels that made Cadillac famous.

Volvo S60

The base variant has 18-inch alloys, leather seats, and cool aluminum interior touches. Its 5-cylinder engine generates 240hp and 258 lb-ft of torque, and there’s also an optional all-wheel drive package. It has the latest safety tech, it’s comfortable, and is very stylish.

Mercedes-Benz CLA 250

This one is a sleek and stylish, coupe-sedan mix with a 208hp, 4-cylinder engine that’s fun to drive. It has AWD as standard, top-notch safety tech, and a great infotainment system.

BMW 230i

This stunning coupe is also available as a convertible and boasts a 4-cylinder, 2.0-liter 248hp, and 258 lb-ft of torque engine with a super smooth 8-speed auto transmission with a manual shift mode. It’s fun, safe, and packed with safety and infotainment technology that makes it great.

Jaguar XE

Its exciting range of engines churn out 180hp, 240hp, or even 340hp. It also has a best-in-class warranty and excellent fuel economy with dynamic driving characteristics.

Audi A4

The very recognizable A4 offers two engine options with 190hp or 252hp. You could also get front-wheel drive or even Quattro four-wheel drive. The safety and tech features are among the best, as are the comfort levels.

Lexus CT 200h

This is the only hybrid on this list and the one with the best city mileage. It also has an excellent navigation system, a customizable cargo area with a lot of storage space, and an optional F Sport trim to up the performance levels.

Acura TLX

This performance luxury sedan has engine options that include a 206hp or a 290hp engine. It also boasts a state-of-the-art all-wheel drive system that is comparable to Volvo or Audi. There are a lot of custom options like paddle shifters too.

Audi A3

This is a compact, sporty sedan with 221hp and a choice between front and four-wheel drive. It’s packed with the latest safety and entertainment tech and boasts high-end creature comforts too.