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Searching for a budget-friendly luxury car might cause some confusion among car shoppers. There are so many different brands to choose from when you take into consideration all of the automakers from the U.S., Germany, and Japan. Fortunately, TrueCar recently came up with a list of the best compact luxury car in the market. Here are the top five models.

1.2023 Acura Integra

We love the 2023 Acura Integra. Why? Because it’s sporty, elegant, fuel-efficient, and well-priced compared to other cars in the same class. Apparently, TrueCar liked it enough to put it at the top of the list. Considering the Integra has a 200-hp engine, handsome exterior styling, and a larger rear seat area than the Audi A3 and Mercedes-Benz CLA 250, we can see why it earned top honors.

Let’s not forget that the 2023 Acura Integra also won the “North American Car of the Year” award, and it’s also well-priced at a starting point of $32,495 for the base model. However, if you want a slick-shifting six-speed manual transmission, we recommend buying the top-trim A-spec model.  

2. 2023 Audi A3

Audi A3 in blue
Blue Audi A3

If you’re looking for a compact luxury car of the German variety, the Audi A3 is a uniquely excellent choice. The A3 does an exceptional job blending performance with luxury for a fair price. TrueCar noted, “Delivering impressive driving manners, sophisticated exterior styling, and a top-notch interior, the A3 is an excellent choice in its class.”

The Audi A3 was redesigned for the 2022 model year, and it now sports a handsome interior highlighted by the Audi Virtual cockpit. There’s also a strong turbocharged 2.0-liter engine under its hood, which matches well with its athletic handling characteristics. Furthermore, it’s well-priced at $36,495.

3. 2023 Cadillac CT4

Front angle view of black 2023 Cadillac CT4, cheapest new Cadillac model and a luxury car bargain
2023 Cadillac CT4 | Cadillac

The 2023 Cadillac CT4 is the brand’s smallest sedan offering. The CT4 is available with two different turbocharged engines and has ample seating for five. TrueCar notes that the rear seats are snug, and its interior is “modest.” However, the CT4 delivers great performance and has a good amount of luxury for a car that only costs around $35,000.

4. 2023 BMW 2 Series

BMW 2 Series models
Newest BMW 2 Series models are exciting to drive

Another German competitor in the field of compact luxury cars is the 2023 BMW 2 Series. The 2 Series offer two different body styles – a coupe and a Gran Coupe. The latter is a four-door sedan with a tapering roofline to give it a coupe-like appearance. The most popular trim level is the BMW 228i Gran Coupe XDrive, which features a turbocharged 2.0-liter inline-four engine, all-wheel drive, and the ability to get up to 33 mpg on the highway. Considering the 2 Series has plenty of power, style, and premium touches, it’s no wonder it ranked high on TrueCar’s list.

5. 2023 Cadillac CT5

2023 Cadillac CT5-V
2023 Cadillac CT5-V | Cadillac

The 2023 Cadillac CT5 is a great option for those looking for a budget-friendly luxury compact car. TrueCar notes, “Despite its low price, the CT5 doesn’t skimp on amenities. It comes with a generous selection of standard features, including a blind-spot monitor, in-car WiFi, and satellite radio.” It’s also turbocharged and rear-wheel drive, which makes it fun to drive spiritedly.

The best luxury compact cars

Whether you’re on the hunt for an American car that fits your budget or a German car with more upscale materials, there’s a luxury compact car that is sure to suit your needs. However, if you’re looking for a good blend of performance and luxury that will fit nearly any price range, the car at the top of this list could be the one.