Best budget luxury cars for 2025: Affordable elegance under $45K

Alexander Stoklosa and William Irvin Lewis
| MotorTrend

For those searching for a luxury badge on a budget, the cheapest luxury cars remain an enticing group — less expensive than SUVs yet just as nice as entry-level SUVs from major luxury brands, they’re the perfect entry point for those looking for fancier wheels.

Many renowned brands offer these entry-level luxury sedans for much less than the average new car sells for, and some of these inexpensive luxury-branded models offer genuine luxury. Some are just a cash-in relying on the badge, but there are several that offer real luxury comfort, technology and performance for affordable prices.

These are the ten most affordable luxury cars you can buy in 2025:

1. Acura Integra – $34,195

The least expensive luxury car by a solid margin is the 2025 Acura Integra, and it manages that while still being solidly built and plenty comfortable — if not as luxurious as it could be, thanks in part to its Honda Civic bones. Is a gussied-up Civic good enough to cross-shop against an entry-level Audi or BMW? By our evaluation and testing, it’s more than that, and absolutely. The Integra’s 200-hp base engine does have lower performance than the cars above it on this list, but it’s much more practical thanks to its large hatchback trunk area. Overall comfort isn’t lacking, its fuel economy is great, and its driving dynamics are fun.

Read our experts’ full Acura Integra review

2. Cadillac CT4 Luxury Sedan – $36,490

There are very few fancy cars available for under $40,000, and fewer that are worth it. The 2025 Cadillac CT4 straddles that line. Handling and chassis dynamics are excellent, even in the base car without any of the performance enhancements available further up the range. Almost anywhere in the range, the Cadillac is noticeably cheaper than its rivals; the CT4 is the cheapest RWD luxury car you can get, in fact. But the back seat and truck are cramped, and the base engine doesn’t stir the soul like its competitors do.

Read our experts’ full Cadillac CT4 review

3. Audi A3 40 Premium Sedan – $39,495

While expensive for a subcompact car, the 2025 Audi A3 is the third-cheapest luxury car currently available in the U.S. The cabin remains tight, and it isn’t as well isolated as larger and more expensive Audis’ interiors, so it’s relatively loud on the freeway. Also, the trunk is small, and the regular A3 isn’t particularly fun to drive — that’s what the pricier S3 performance model is for.

Read our experts’ full Audi A3 review

4. BMW 228i Gran Coupe – $40,775

As the least expensive car in the BMW lineup, the 2025 BMW 2 Series Gran Coupe has some genuinely impressive upsides, including a segment-busting amount of interior space and a pair of good powertrain options (the more affordable of which is the 228i’s turbo four), though its potentially harsh ride does not help its luxury car credentials. We’ll have to see for ourselves if the 2025 refresh addresses that. Overall, the rest of BMW’s lineup makes the Gran Coupe somewhat redundant, as those going for fun will opt for the two-door 2 Series Coupe, and those seeking practicality will likely just get an X1 SUV for roughly the same price.

Read our experts’ full BMW 2 Series Gran Coupe review

5. Lexus IS300 Sedan – $41,360

The 2025 Lexus IS still looks good, even though it’s getting on in years. The entry-level IS300 model’s turbocharged four-cylinder engine is fine, but the up-level IS350’s 311-hp V-6 is more interesting (and the IS500’s V-8 even more so). Of course, those IS models cost more money. All IS models have cramped back seats and a general lack of refinement when compared to the competition, which, again, largely comes down to this sedan’s age. It also still uses Lexus’s maligned touchpad-operated infotainment system, and not the newer, crisper touchscreen setup found in newer Lexus models.

Read our experts’ full Lexus IS review

6. BMW 230i Coupe – $40,375

Confusingly, there are technically two wholly different BMWs under the 2 Series banner. As it happens, the very slightly more expensive model with two doors is simply called the Coupe, and it’s not just one of the least expensive BMWs, but the lightest and smallest sportiest coupe in the company’s lineup. The base 2 Series Coupe has nice front-engine, rear-drive dynamics and a good powertrain, with our main complaint being a lack of standard driver assist features like adaptive cruise. For a car with two more doors and less sporting intentions, you can spend a few hundred dollars less and get the four-door Gran Coupe, which is a front-wheel-drive vehicle that shares a platform with the BMW X1 and the Mini Cooper Countryman.

Read our experts’ full BMW 2 Series Coupe review

7. Lexus ES350 – $43,215

The Lexus ES is a surprise entrant on this list, and a must-see if you’re hoping for a luxury sedan that’s both attainable and much, much larger than anything else at this price point. Unlike virtually every other luxury car on this list, which fall into the entry-level subcompact and compact size classes, the ES is a large car, a sort of plus-size midsize sedan. At its most affordable, the ES comes with a smooth and powerful V-6 engine (in ES350 guise) — but a much more efficient hybrid (ES300h) is available for about a thousand bucks more. The ES350 is a true luxury machine, with a quiet cabin, cosseting ride, high-class materials throughout, and the scale one expects from an executive sedan. Soon, the ES is being replaced by a new-generation model that’s only available as a hybrid ES350h or an all-electric ES350e or ES500e for 2026, making this 2025 ES350 your last chance for a six-cylinder ES.

Read our experts’ full Lexus ES review

8. Genesis G70 2.5T RWD Standard – $43,850

Beautiful design and dynamic poise make the 2025 Genesis G70 an easy recommendation for those unattached to a European luxury badge. More exciting to drive and look at than most of its competition, the G70’s negatives are related more to practicality than passion. The trunk doesn’t offer much space, and the gas mileage (21/29 mpg city/highway for the base four-cylinder model) is middling at best. But for those more interested in the ways a luxury car can excite, the powerful 300-hp turbocharged I-4 will do the trick.

Read our experts’ full Genesis G70 review

9. Volvo S60 – $43,795

Meet the only Swede on this list, Volvo’s handsome S60 sedan. This four-door competes in the compact luxury sedan segment against the likes of the Lexus IS above, BMW’s 3 Series and others. That makes it more usefully sized than some of the smaller subcompacts on this list, though it’s not as spacious as Lexus’s big ES350. Every S60 comes with Volvo’s aura of safety, as well as a comprehensive list of actual safety equipment, plus understated, almost elegant styling inside and out. The entry-level S60 gets a turbocharged four-cylinder engine with mild hybridization.

Read our experts’ full Volvo S60 review

10. Tesla Model 3 Long Range RWD – $44,130

We recently found that getting the maximum everything variant of an EV is by no means a necessity, including for the 2025 Tesla Model 3. This refreshed Highland model gets better driving dynamics and plenty of targeted improvements, though range and performance are similar to their already good original numbers. The optional (and expensive) Full Self-Driving feature remains untrustworthy, the lack of an instrument cluster is still a bad idea, and Tesla continues to overestimate the range; we managed only 211 miles on a charge when cruising at 70 mph in the entry-level single-motor, Long Range Model 3. Charging speed is quite reasonable, with a Supercharger able to replenish 118 miles of range in 15 minutes or 184 miles in 30 minutes. If you can look past the brand’s current woes, given its CEO’s polarizing turn in government, the Model 3 remains a premium long-range EV sold at mainstream prices and a thorn in the sides of de-facto competitors such as Hyundai’s Ioniq 6.

Read our experts’ full Tesla Model 3 review