Best Luxury Cars Under $40K for 2018

Best Luxury Cars Under $40K for 2018

Base MSRP $35,170


All powertrains are accessible

Potent turbocharged V-6

Luxurious look and feel

Intuitive and easy-too-use infotainment system


Thirsty turbocharged four-cylinder engine

Visibility hampered by its styling

Tight rear seats

Awful nighttime visibility

BMW 3 Series

Of course BMW had to make it on the list with its 3 Series, but it’s surprising that it sits behind Audi, Lexus and Lincoln models. In years past, this would be blasphemy, but that’s the way the luxury segment has shifted lately.

While the 3 Series does have a slew of powertrain options available, including a diesel and a few potent V-6 models, the only one that falls under our $40K limit is the 320i and its 180-horsepower 2.0-liter four-cylinder engine. This engine does leave a lot to be desired, but you’re still getting BMW quality and handling.

Base MSRP: $34,900


Amazing handling

Available all-wheel drive

Great visibility

Good fuel economy


Tight rear seat

Not as refined as some competitors

Advanced safety features are expensive options

Funky gear selector

Audi A3

Fifth on our list, we have our second Audi model. This time around, it’s A3.

While its big brother, the A4, knocked it out of the park in almost every category, the smaller A3 has a few hiccups here and there. It starts with powertrains that leave a little to be desired, like the 189-horsepower 2.0-liter, and continues with a tight cabin with limited wiggle room.

That said, you’re still getting a great luxury car at a bargain with the A3.

Starting MSRP: $31,950


Feels luxurious, even with its low price

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Comfy front seats

Leather upholstery is standard


Tiny rear seat

Feels a little too much like a VW Jetta

Looks are bland at best

Volvo S60

The most intriguing part of the S60 is its lineup of impressive engines, but to fit under our $40,000 budget, we have to limit it to the 240-horsepower T5 powertrain. Though it is the least powerful of the group, it is still nothing to turn your nose up to.

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