The Best Affordable Luxury Cars of 2025
In recent years, the cost of, well, everything has gone up. Cars are no exception. For many new-car buyers, staying within a budget is crucial. The good news? You don’t have to sacrifice luxury or driving enjoyment to get behind the wheel of something special. A new crop of affordable luxury cars delivers the performance, comfort, and handling drivers crave. Here are ten of our favorite, including sedans, hatchbacks, coupes, and SUVs. All have starting prices under $45,000, well below the average transaction price of a new car.
1. 2025 Genesis G70
Base price: $43,850
Genesis, Hyundai’s luxury division, has a knack for offering a lot of car for the money. The G70 exemplifies this, undercutting its German rivals and often providing more in return. The base G70 features a potent 300-hp turbocharged 2.5-liter four-cylinder engine and can reach 60 mph in just under six seconds. Upgrading to the $52,000 3.3T Sport Advanced model with a twin-turbo V-6 raises the horsepower to 365 and cuts the 0-60 time to around 4.5 seconds. That’s a serious performance bargain, considering some comparable German six-cylinder models can exceed $60,000. Furthermore, the G70’s suspension strikes an excellent balance between responsiveness and ride comfort.
Inside, the G70 boasts high-quality materials.
2. 2025 Acura Integra
Base price: $34,195
Sport-compact enthusiasts cheered when Acura revived the Integra nameplate in 2023 after a 21-year hiatus. While its design may not directly recall the original Integras, the Civic-based hatchback certainly does in terms of driving fun and driver involvement. The Integra isn’t a muscle car, but the 200-hp turbo four-cylinder (borrowed from the Civic Si) delivers plenty of thrills and can be paired with a glorious six-speed manual transmission and a limited-slip differential. It’s a fantastic setup for handling tight, winding roads. The extra value here comes from a well-made interior with ample space in both the rear seats and the cargo area when you open the rear hatch.
3. 2025 Volvo XC40
Base price: $41,945
Many modern luxury crossovers have a somewhat generic aesthetic, but the Volvo XC40 has a fresh, youthful design. Beyond its stylish exterior, this crossover offers a lot. The base model comes well-equipped with the latest infotainment and connectivity technology, along with important driver-assistance features. All XC40s are powered by a lively 247-hp turbocharged four-cylinder engine coupled to an eight-speed automatic transmission and standard all-wheel drive. It accelerates quickly, reaching 60 mph in just over six seconds. The interior feels especially well-crafted, with a clean, modern vibe. Notably, the XC40 can tow 3500 pounds—more than most in its class.
4. 2025 BMW 2-Series
Base price: $40,775
The BMW 2-Series coupe is reminiscent of a time when Bimmers were all about driving engagement. Driving this nimble gem through twisty roads is a joy. Even the base rear-wheel-drive 230i offers a respectable 255 horsepower and can be equipped with both the M Sport and Dynamic Handling Packages, which include larger tires, a sportier suspension, bigger brakes, and upgraded steering. It can hit 60 mph in just over five seconds. (For even more performance, there’s also the six-cylinder M240i.) This is a car for drivers who want their commute to be an enjoyable experience. The smallest BMW is also tech-forward, with a 14.9-inch touchscreen infotainment system and BMW’s latest software. Rear seat space is limited, like most coupes, and best suited for shorter trips.
5. 2025 Cadillac CT4
Base price: $36,390
The Cadillac CT4 is a uniquely American sports sedan with genuine performance potential. It also delivers many of the qualities we value in a reasonably priced luxury car, including responsive, sporty handling. Its rear-wheel-drive chassis makes the CT4 more athletic and engaging on a winding road than many of its front- or all-wheel-drive rivals, providing plenty of thrills. For the best experience, opt for the optional 310-hp 2.7-liter turbocharged four-cylinder, which achieves 60 mph in under five seconds. The CT4’s clean, contemporary design is also appealing. The CT4 isn’t as spacious as some competitors, and its interior finishing isn’t quite as refined.
6. 2025 Audi A3
Base price: $39,495
Think of the Audi A3 as the more luxurious cousin of the VW Golf GTI, sharing many mechanical components. The A3 offers serious handling capabilities and fun on backroads. Its zesty acceleration comes from a 201-hp turbocharged 2.0-liter four-cylinder engine paired to a seven-speed dual-clutch automatic transmission. Being an Audi, Quattro all-wheel drive is standard. The A3 strikes a nice balance, delivering solid performance and excellent fuel economy, with an EPA-rated 34 mpg on the highway. The A3’s interior isn’t as spacious as others in its class and has a relatively small trunk.
7. 2025 Mini Countryman
Base price: $40,075
Unlike the other vehicles on this list, the new Mini Countryman is the largest car in the brand’s lineup. This subcompact SUV has a practical 25 cubic feet of cargo space and an interior that’s among the most stylish in its price class. It feels upscale and playfully casual, a combination only Mini can achieve. Under the hood, there is a 241-hp turbocharged four-cylinder, providing a 0-60 mph time of around six seconds. The Countryman also maintains the lively handling that’s a hallmark of all Mini vehicles.
8. 2025 Lexus IS
Base price: $42,110
The Lexus IS is a great value in the luxury sport sedan segment. It starts several thousand dollars lower than its closest competitors, the BMW 3-series and Mercedes-Benz C-class. However, value isn’t the only reason the IS stands out. The Lexus provides an excellent balance of ride comfort and handling precision. It’s rewarding on twisty roads while also providing a true luxury car experience. The base engine, a 241-hp turbocharged four-cylinder offered in the IS 300, isn’t the most exciting, while the more potent 311-hp IS 350 F Sport, with a V-6 will reach 60 mph in the mid-five-second range. The material quality inside is top-notch.
9. 2025 BMW X1
Base price: $42,525
The spunky X1 is a compelling subcompact SUV with a composed chassis, an engaging personality, and ample power at this price point. The base xDrive28i provides a solid driving experience. The X1 is a great way to enjoy the commute. The BMW X1 has a roomier interior than many rivals and quality materials throughout. The X1 comes standard with the latest software.
10. 2025 Lexus UX
Base price: $37,715
The UX is the only hybrid on this list, and it delivers fantastic fuel economy, around 45 mpg city and 41 mpg on the highway. For 2025, Lexus gave the little hybrid hatchback a power boost to 196 horsepower and a new name, replacing the old UX 250h model with the new UX 300h. Straight-line speed isn’t really why you shop the UX. Nope, it’s the tidy dimensions and nimble handling (especially with the optional adaptive dampers in the F Sport Handling model) and that beautifully trimmed Lexus interior. The UX is comfortable and quiet on the open road. The UX can be loaded with features like heated and ventilated seats, a 12.3-inch infotainment touchscreen, and a premium audio system.
