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It’s not difficult to find used luxury cars at affordable prices, but what about new models? If you’re looking for a small luxury SUV, many start at under $40,000. Of course, price isn’t everything. You also want a luxury SUV that’s relatively cheap to refuel and provides plenty of tech features to justify the spend. Here are four of the best, most affordable luxury SUVs of 2023.

2023 BMW X2

Most affordable luxury suv: 2023 BMW X2
2023 BMW X2 | BMW of North America, LLC

2023 is the final production year for the BMW X2, but TrueCar still recommends this model for snappy handling and quick acceleration. The X2 pairs a 228-hp turbocharged engine with an eight-speed automatic transmission. When optioned with all-wheel drive, this affordable luxury SUV earns 27 mpg city/highway combined. 

TrueCar reviewers also praise the X2’s spaciousness but think this SUV needs more cargo space. Its maximum of 50 cubic feet isn’t bad, but some rivals offer more. The interior also has a few more plastic pieces than expected from a BMW.

You’d still be hard-pressed to find many other small luxury SUVs with the X2’s fastback styling. Furthermore, the intuitive infotainment system comes standard with smartphone integration (but you’ll get only Android Auto in the 2023 model). BMW no longer lists the X2 on its consumer website, but you can find it at dealerships starting at $37,595.

2023 Cadillac XT4

TrueCar reports that buyers pay an average of $36,693 for a 2023 Cadillac XT4 (nearly $800 less than its starting MSRP). With 235 hp on tap, this affordable luxury SUV is slightly more powerful than the BMW X2, but the AWD models are much less efficient. The XT4 still strikes a good balance between ride comfort and responsive handling, especially with the optional sport suspension.

The Cadillac XT4 has a below-average maximum cargo capacity but still provides over 22 cubic feet behind the second row. Also, second-row legroom is subpar compared to other SUVs in this segment. Still, even the synthetic leather seats in the base Luxury trim are cozy and supportive.

The Luxury also comes packed with standard equipment, including wireless smartphone integration and an impressive safety suite. In addition, TrueCar reviewers appreciate the XT4’s customization options and available package upgrades. A fully loaded model with a sunroof, ventilated leather seats, and a Bose audio system might cost only around $46,000.

2023 Volvo XC40

Most 2023 Volvo XC40 buyers pay $1,000 less than the manufacturer’s suggested retail price of $37,445. New models now have a hybridized turbo-four producing up to 247 hp, depending on the trim. There’s nothing noteworthy about this engine’s performance except its 27 mpg city/highway fuel economy.

The Volvo XC40’s base trim has several advanced driver’s aids, plus a new Google-enhanced infotainment interface. Both rows offer ample legroom, and TrueCar editors are fans of the interior’s Scandinavian flair.

2023 Lexus UX

Retailing for $36,490, the 2023 Lexus UX is the cheapest new luxury SUV. This hybrid also offers the most competitive fuel economy, earning up to 42 mpg combined. But thrill-seekers might want to look elsewhere: The UX’s 181-hp four-cylinder is reportedly slow, and the only gearbox option is a continuously variable transmission. 

Many reviews mention the Lexus UX could use more passenger and cargo space. However, the interior boasts premium materials and unique seat color options. Plus, the standard Lexus Safety System+ 2.5 is an incredible value for the UX’s price point.


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