Skip to main content

Buying a new luxury sedan doesn’t have to be an expensive purchase. As a matter of fact, there are several new luxury cars out there that won’t break the bank. Whether you’re in the market for an affordable luxury sedan that’s dripping with luxurious amenities or one that comes equipped with a powerful engine, there are lots of luxury sedans under $40K on the market today. But when it comes to choosing the best luxury sedan under $40K? These are U.S. News & World Reports’ top picks.

The 2021 Kia Stinger is an affordable luxury sedan 

A red 2021 Kia Stinger driving
2021 Kia Stinger | Kia

The 2021 Kia Stinger is considered a luxury car? According to U.S. News, the answer to that question is yes. In fact, the organization reports that when it comes to this affordable luxury sedan, this affordable luxury car is challenging the status quo. It’s not only available with your choice of engine under the hood, but it also boasts responsive handling and comes standard with a 10-year/100,000-mile powertrain warranty.

As for luxury amenities? This year’s model offers plenty of people-pleasing features. In fact, sought-after interior features like leather upholstery, heated front seats, and a 7-inch touch screen with Apple CarPlay and Android Auto are all standard on this year’s model. And if those aren’t enough features for you? The 2021 Kia Stinger can also be had with a wide power sunroof and a premium audio system.

The 2021 Audi A4 is one of the best luxury sedans 

A 2021 Audi A4 parked in the mountains, the 2021 Audi A4 is one of the best luxury sedans under $40K
2021 Audi A4 | Audi

The 2021 Kia Stinger isn’t the only new car that secured a spot on U.S. News’ list of the best luxury sedans under $40K. So if it isn’t quite your style? You’ll be pleased to know that the 2021 Audi A4 also landed a spot on the list. This year’s model starts at $39,100 and at its most expensive will have you spending a minimum of $49,800.

But the 2021 Audi A4 has more to offer than a manageable price tag. This year’s model comes powered by a turbocharged 2.0-liter four-cylinder engine and, according to Car and Driver, boasts a “refined ride quality and deft handling.” This year’s model comes well-stocked with features too. In fact, the 2021 model now comes standard with wireless Apple CarPlay.

“The Audi A4 is a finely crafted blend of performance, comfort, and technology.”

U.S. News

The 2021 BMW 2 Series is a luxury sedan under $40K

There’s a lot to like about the 2021 BMW 2 Series. This year’s model is available in three body styles, including a Coupe, Convertible, and a four-door Gran Coupe. According to U.S. News, this year’s new BMW 2 Series is also one of the best luxury sedans under $40K. Though, with so many options to choose from and a $35,700 price, it’s no surprise that this affordable luxury sedan was able to land a spot on U.S. News’ list.

As for what’s under the hood of this luxury car? Opt for the 228i Gran Coupe, which comes driven by a 228-hp turbocharged four-cylinder engine, or choose the 230i Coupe, which is powered by a 248-hp turbocharged four-cylinder engine. U.S. News added, “With its handling prowess and satisfying acceleration, the BMW 2 Series should be on your list if you are shopping for a fun-to-drive small luxury car that’s not too expensive.”

The 2021 Tesla Model 3 is a luxury electric car

The 2021 Tesla Model 3 isn’t like other luxury cars on U.S. News’ list. As a matter of fact, the 2021 Tesla Model 3 is the only luxury electric car on its list of the best luxury sedans under $40K. Though, it’s no surprise as to why. The Model 3 can drive up to 263 miles on a single charge. Opt for the Long Range model instead and the new Model 3 can travel up to 353 miles.

Its interior is pretty impressive too. In fact, according to Consumer Reports, the Tesla Model 3’s interior has a “simplistic yet modern vibe, highlighted by a clean dash, a complete lack of instruments in front of the driver, and concealed air vents.” It comes stocked with features too, including a 15-inch touchscreen display.

The 2021 Genesis G70 is the best luxury sedan under $40K

A silver 2021 Genesis G70 driving in a neighborhood, the 2021 Genesis G70 is an affordable luxury sedan
2021 Genesis G70 | Genesis

If you’re shopping for the best luxury sedan under $40K, U.S. News recommends looking no further than the 2021 Genesis G70. In fact, when it comes to affordable luxury cars, U.S. news reports that the “G70’s combination of agility and high-quality cabin make it a budget-conscious alternative to cars like the BMW 3 Series.”

As for what you can expect from this luxury sedan? At the heart and soul of this year’s model is a standard turbocharged four-cylinder engine that delivers 252-hp. This year’s model also comes outfitted with plenty of popular features, including an 8-inch touch screen display with Apple CarPlay and Android Auto, push-button start, synthetic leather upholstery, and several driver-assistance features.

Buying a luxury sedan doesn’t have to break the bank

Sure, there are several luxury sedans out there that cost a pretty penny. But if you’re in the market for an affordable luxury sedan? You’ve got plenty of options to choose from, especially if you shop U.S. News’ top picks for the best luxury sedans under $40K.


Is the Cheapest New BMW SUV Worth Your Attention?