These Are the Best Affordable Luxury Vehicles for 2025

Yahoo

04-03-2025

Our world has become pretty darn expensive over the past few years. There's less money to spend on, well, just about everything—including cars. Most new-car buyers are working with a tight budget. The good news? You won't have to break the bank to slide behind the wheel of a great vehicle—even one with a premium badge. That's because there's a fresh crop of affordable luxury cars that deliver the driving joy, comfort and agility we covet. Here are our ten favorite affordable luxury cars, including both sedans, hatchbacks, coupes, and SUVs. They all have starting prices under $45,000, which is well under the average transaction price of a new car.
More Car Rankings: Most Fun-to-Drive Sedans | Best Convertibles | Best Mid-Size SUVs | Best Luxury Subcompact SUVs | Best Small Cars | Best Affordable Sports CarsBase price: $43,850
Genesis, Hyundai's luxury arm, has a knack for delivering more car for less money. The G70 is no exception, undercutting its German rivals by thousands and offering more in return. The base G70 receives a potent 300-hp turbocharged 2.5-liter four-cylinder and hits 60 mph in just under six seconds. A modest price bump to about $52,000 gets you the 365-hp 3.3T Sport Advanced model, which has a twin-turbo V-6 and can hit 60 mph in the mid-four-second range. That's a serious performance bargain considering some comparable German six-cylinder models go for upwards of $60,000. And the G70's suspension tuning hits the right balance between being firm and responsive while also providing the right amount of cushion over bumps. Inside, the G70 is fitted with materials that feel expensive.
More Info on the New, More Powerful Base EngineBase price: $34,195
Sport-compact fans gave Acura a heartfelt slow clap when it finally resurrected the Integra nameplate in 2023 after a 21-year absence. The Civic-based hatchback may not recall the O.G. Integras in terms of design, but it certainly does when it comes to driving fun and driver involvement. The Integra isn't muscle-car quick, but the 200-hp turbo four-cylinder (borrowed from the Civic Si) delivers plenty of fun and can be optioned with a glorious six-speed manual paired with a limited-slip diff. We can't think of a manual transmission that's more pleasant to row through the gears. It's a great partner on a tight and twisty backroad, too. The extra value here comes from an interior that feels well-made and offers plenty of space in the rear seat and in the cargo area when you open the rear hatch.
The Integra Type S Won our PCOTY AwardBase price: $41,945
Many of today's luxury crossovers have staid styling that's a little, well, anonymous. But the Volvo XC40 projects a fresh and youthful image. It charts its own design path. Of course, our enthusiasm for this crossover is more than metal-deep. First, even the base model comes comes well-equipped with the latest infotainment and connectivity technology along with important driver-assistance features. All XC40s are powered by a peppy 247-hp turbocharged four-cylinder backed by an eight-speed automatic and standard all-wheel drive. It's certainly quick enough, reaching 60 mph in just over six seconds. The interior feels particularly well-crafted, with a clean Nordic vibe that's more fashionable than the cabins found in its competitors. And best of all, you can tow 3500 pounds with an XC40—more than just about anything in its class.
Learn about the XC40's Electric SiblingsBase price: $40,775
The BMW 2-series coupe is like a time machine back to when every Bimmer was focused on driving fun. A few hours hustling this little gem through some tight and twisty canyons reminds us of those glory days. Even the base rear-wheel-drive 230i offers a decent 255 horsepower and can be had with both the M Sport and Dynamic Handling Packages, which include larger tires, a sportier suspension, bigger brakes, and upgraded steering. It can rip to 60 mph in just over five seconds, which is plenty quick. (If that's not quick enough, there's also the six-cylinder M240i.) This is the car you choose when you want the commute to be an experience more engaging than an hour tuning out to a podcast. The smallest BMW is also techy with a 14.9-inch touchscreen infotainment system and BMW's latest software. Like in most coupes, head and kneeroom in the rear seat is somewhat compromised, so time back there is best in shorter stints.
BMW Made Changes to the M2 and 2-Series for 2025Base price: $36,390
The Cadillac CT4 is a unique machine, as it's a small American sports sedan with serious performance potential. It also offers much of what we value in a reasonably priced luxury car. At the top of that list is sporty, responsive handling. The CT4's rear-drive chassis means it's more athletic and rewarding on a canyon road than many of its front- or all-wheel-drive rivals. And the CT4 provides plenty of thrills when the road bends. Our choice? Check the box for the optional 310-hp 2.7-liter turbocharged four-cylinder for a run to 60 mph in under five seconds. We really like the CT4's clean and modern design, too. Drawbacks? The CT4 isn't as roomy as some competitors, and the interior isn't quite as finely crafted.
The CT4-V Blackwing Is One of the All-Time Great Sports SedansBase price: $39,495
Think of the Audi A3 as the more luxurious and upscale cousin of the VW Golf GTI. The two share many mechanical bits under the skin. And that means the A3 has serious handling chops with a heap of backroad driving fun. Zesty acceleration comes from the 201-hp turbocharged 2.0-liter four-cylinder paired to a seven-speed dual-clutch automatic transmission. This is an Audi, so Quattro all-wheel drive comes standard. Paired with a set of snow tires, this sedan should perform myriad winter duties without fail. The A3 hits a sweet spot because it delivers solid performance and excellent fuel economy—an EPA-rated 34 mpg on the highway, although we've seen even higher numbers in our own testing. On the inside, the A3 isn't as roomy as some in the class and has a pretty small trunk.
We Recently Drove the High-Performance RS3 VersionBase price: $40,075
Unlike just about every other vehicle on this list, the new Mini Countryman is the largest car in its brand's lineup, not the smallest. This subcompact SUV has a useful 25 cubic feet of space in the cargo area and is fitted with one of the hippest interiors of anything in the price class. It feels upscale and playfully casual in a way only Mini can pull off. How can you not dig that cool, round 9.4-inch OLED infotainment screen. Under the hood, there's a 241-hp turbocharged four-cylinder, so this big Mini should hit 60 mph in around six seconds. Best of all, the Countryman is infused with the frisky handling baked in to all Mini vehicles.
We Also Drove the Electric Version, the Countryman SEBase price: $42,110
The Lexus IS is a good value amongst luxury sport sedans. It has a starting price several thousand dollars lower than those of its two closest competitors, the BMW 3-series and Mercedes-Benz C-class. But value isn't the only reason why the IS shines. The Lexus strikes an excellent balance between ride comfort and handling sharpness. It's not quite as performance-oriented as some other rear-wheel-drive sports sedans, but it's rewarding through a set of switchbacks while also riding like a true luxury car. The base engine, a 241-hp turbocharged four-cylinder offered in the IS 300, probably won't make your pulse quicken. The more potent 311-hp IS 350 F Sport, with a V-6, comes in cheaper than the aforementioned competition with a few options tacked on and will hit 60 mph in the mid-five-second range. Yes, the rear-seat accommodations inside are tighter than some, but the quality of the materials inside is at the top of the class.
The IS 500 Has a V-8 and Is Like a Muscle CarBase price: $42,525
As the second BMW on this list, the spunky X1 is a compelling subcompact SUV with a taut chassis, an engaging personality, and plenty of power at modest price. Here's one case where you don't need to shop the more expensive model to get a solid-driving rig. Oh sure, the more powerful M35i rips with its 312-hp turbo-four engine. But the smoother-riding and more composed base xDrive28i does more with less. This is an excellent machine to take the long (and twisty) way home from work each night. But the X1 is more than just a modern hot hatch. On the inside, the tiniest BMW SUV is roomier than many competitors and is fitted with swanky materials and interesting visual touches such as the cool metal speaker grills and floating center console. The X1 comes standard with the latest software, iDrive 9, just like more expensive Bimmers.
We Review the X1 xDrive28iBase price: $37,715
The UX is the only hybrid on this list, and it returns fantastic fuel economy of around 45 mpg city and 41 mpg on the highway. This makes it a great commuter. For 2025, Lexus gave the little hybrid hatch a power boost to 196 horsepower and a new name, replacing the old UX 250h model with the new UX 300h. The newfound power improves acceleration. But 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. Oh, and the UX is comfortable and hushed on the open road. In other words—it's a typical Lexus. And like all Lexus vehicles, the UX can be loaded with options such as heated and ventilated seating, a 12.3-inch infotainment touchscreen, and a premium audio system.
The UX Is a Prius for people Who Don't Want a Prius
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