Best Luxury Cars Under $40K for 2018

Best Luxury Cars Under $40K for 2018

What really makes this small sedan impressive is it safety, as Volvo continues its reign as one of the safest automakers on the planet.

Starting MSRP: $33,950


Standard automatic emergency braking

Incredible crash-test results

Well-equipped and peaceful cabin


Slower than the competition

Rides a little stiffer than expected

Iffy infotainment system

Lexus IS

Lexus is back on the list for a second time with its IS sedan. While most buyers prefer the more powerful IS 350, the IS 300 and its 241-horsepower 2.0-liter engine is a nice No. 2.

The IS does excel in many areas, like acceleration and reliability, it struggles in some key areas, like owner satisfaction, braking, ride quality, and rear seat comfort, pushing it further down our list.

Starting MSRP: $37,825


Sexy looks

Outstanding reliability for a luxury car

After-purchase customer service is among the best


Cramped interior that’s not easy to get in and out of

Horrific fuel economy

Subpar handling

Remote Touch Interface is ridiculously difficult to use

Infiniti Q50

Infiniti is another brand that’s come a long way in recent years, and the Q50 stands out as one of the best luxury cars on the cheaper end of the spectrum.

What helps push the Q50 up our list is that buyers can choose from the 2.0-liter turbocharged engine with 208 horsepower or the 3.0-liter turbo V-6 engine with 300 horsepower and still end up under out $40,000 limit. The latter powerplant makes this the quickest model on our list.

Starting MSRP: $34,200


Super-quick 0-to-60 time

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Impressive handling and braking

Great visibility

Plenty of room inside


Controls are a bit overwhelming

Cabin isn’t very quiet

Subpar front-seat comfort

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