The world of luxury cars is diverse and often confusing due to the numerous forms and price ranges available. To simplify the process for those looking for something luxurious, sporty, or both, Driving.ca examines the best luxury rides in four key categories: small, mid-sized, hot-mid-sized, and large.
Best Small Luxury Car: BMW 2 Series
The BMW 2 Series emerged as the clear winner in the small luxury car category. With a starting price of $49,900, it represents excellent value as BMW’s smallest entry. The second-generation 230i xDrive is particularly noteworthy for its agility and driving excitement, powered by a 2.0L turbo-four engine producing 255 hp and 295 lb-ft of torque. The xDrive all-wheel-drive system provides all-weather grip while maintaining a rear-drive feel.

New for 2025 is BMW’s Curved Display, featuring a 12.3-inch screen for digital instrumentation and a 14.9-inch display for infotainment under a single piece of glass. While listed as a four-seater, the rear seat is more suited for additional storage than passenger comfort.
Best Mid-sized Luxury Car: Mercedes-Benz E-Class
The sixth-generation Mercedes-Benz E-Class continues unchanged for 2025, offering three core models: E 350, E 450, and the AMG E 53 PHEV. The E 350 features a 2.0L turbo-four engine, while the E 450 boasts a 3.0L turbo-six. Both engines utilize mild-hybrid technology, incorporating an electric motor into the nine-speed automatic transmission.
Inside, the E-Class offers a 12.3-inch instrumentation display and a 14.4-inch multimedia touchscreen running on the third-gen MBUX operating system. The Superscreen Package adds another 12.3-inch display for the front passenger.
Best Hot-mid-sized Luxury Car: Porsche Panamera
The Porsche Panamera was the runaway winner in the hot-mid-sized luxury car category. Available in various trims ranging from $122,000 to $261,100 for the Turbo S E-Hybrid, the Panamera offers a wealth of choice. The Active Ride suspension, available on hybrid models, uses 400-volts to provide truly active damping, smoothing rough roads and controlling body motion with precision.
Best Large Luxury Car: Genesis G90
The Genesis G90 is a stylish sedan that redefines large luxury. With a 3.5L turbo-V6 engine producing 409 hp and 405 lb-ft of torque, it offers impressive performance. The e-Supercharger, powered by a 48-volt mild-hybrid setup, ensures lag-free performance. Inside, the G90 features rich tech, including a pair of 12.3-inch screens for instrumentation and infotainment.
These luxury cars represent the best in their respective categories, offering a blend of performance, luxury, and technology that sets them apart in the automotive market.