With the price of the typical car creeping ever upward, we’ve found ourselves in the strange position of seeing some luxury cars become the affordable options.
It’s no secret that car prices have skyrocketed. These days, even the most mainstream automakers sell cars that easily reach into luxury pricing territory. For example, the 2026 Hyundai Palisade in its top Calligraphy trim costs around $56,000. Myriad luxury brands and luxury-adjacent brands (like Buick) start for well under that. That might seem grim, but it also means that if you’ve budgeted for a new car, a luxury brand might actually be within your reach.
The notion that a luxury car can be a legitimate value purchase may be a little weird, but there are a handful you can get for under $40,000. Industry analytics firm JD Power even has a list of them if you input the correct search filters. You likely won’t get the most luxurious features, such as the customizable fragrant dispensers and biometric door locks, but what you will get is a luxury-level vehicle with more features than you’ll typically see in a regular car.
If the concept of owning a BMW, Audi, or Cadillac makes you happy, but you don’t want to spend top dollar, this is the list for you. All of these vehicles have an MSRP at or below $40,000 before taxes, and they are competitive with the best luxury cars in the segment. The only downside is that they are all on the smaller side, which is to be expected. Small cars cost less. 2025 Audi A3
The Audi A3 is an above-average vehicle in every metric. Per most reviews, it’s comfortable, quick, and fun to drive, with plenty of options and features to add more luxury feel. This sedan comes with AWD, making it one of the few somewhat affordable sedans with the feature. It also has decent fuel economy, boasting 28 MPG combined. Basically, the Audi A3 doesn’t have any particular weaknesses in any area, aside from space since it is a smaller sedan.
The A3 just barely squeaks onto this list with an MSRP of $40,100 for the 2026 base model. If you can find a 2025 model — which we liked quite a bit in our review — it will start at slightly less than $40,000, and you’ll probably get a good deal from the dealership to take it off of their hands. The base model comes well equipped, as is the norm for luxury brands. You get leather upholstery, a 10.1-inch infotainment display, a panoramic sunroof, and three-zone climate control out of the box. Audi has additional packages and trims to add more if you wish.
It’s a pretty good value proposition overall, although Audi does a good job of making shoppers want to step up to a higher trim. For just a few thousand more, you get Sonus-powered audio system, wireless charging, sleeker 18-inch wheels, and adaptive cruise control. Even so, you can live without all of those things and get a nice car for not that much money.2025 Audi Q3
The Audi Q3 is the smallest crossover SUV Audi sells. Thanks to that small stature, it drives and rides more like a car than you might expect. As with all Audis, the Q3 comes with AWD as standard equipment, alleviating the need to add it as an option. It’s a hair slower than most other luxury cars, even in this price category, but it makes up for it with decent fuel economy and an easy-going manner.
