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The 8 best luxury cars and SUVs that start under $40,000, according to Consumer Reports

Luxury doesn’t have to break the bank. These 8 Consumer Reports picks prove you can get premium features for under $40K.

Buying a new luxury car in today’s market might sound out of reach. The average new vehicle sold in the U.S. was priced at $48,907 in June 2025, according to Kelley Blue Book — well above what many car shoppers can comfortably afford. Tariffs have driven up prices even more, especially on imported vehicles, pushing many Americans toward used models in search of better value.

But there are still brand-new luxury cars and SUVs that offer premium features without the premium price tag. Consumer Reports has compiled lists of luxury vehicles starting under $40,000 that still deliver on performance, comfort, and quality — even if they’re often a bit smaller than the segment’s flagship sedans or full-size SUVs.

These models are typically entry-level versions within their respective lineups, but they come with many of the hallmarks buyers expect from a luxury brand: upscale interiors, refined driving dynamics, advanced safety and tech features, and sharp design. For buyers who want something new, stylish, and well-equipped, they present a compelling alternative without breaking the bank.

Below, we break down Consumer Reports’ picks for the best new luxury cars and SUVs under $40,000 — vehicles that prove you don’t need to spend north of $50K to enjoy a high-end ride.

2 / 9

2025 Lexus UX

Credit: Lexus

With a base MSRP starting at $36,740, the Lexus UX is a Consumer Recommended pick that gets 37 miles per gallon and is the highest rated SUV on the list.

"We found the UX to be quite pleasant and thrifty on fuel, and we like that it’s loaded with standard safety equipment," Consumer Reports said. "However, it’s very small inside and the controls are rather fussy."

3 / 9

2025 Audi Q3

Credit: Audi

With a base MSRP starting at $37,400, the Audi Q3 is a Consumer Reports recommended pick that gets 23 miles per gallon.

"The Q3 is a pleasant SUV that packs luxury, style, and practicality into a small package," Consumer Reports said. "It successfully melds traditional Audi qualities such as meticulous, yet understated interior design, handling agility, and a solid feel. As such, it ranks high among its bantam luxury SUV peers."

It dinged the SUV for a loud engine and poor visibility, and didn't like that you can't get it with a heated steering wheel.

4 / 9

2025 Mini Cooper Countryman

Credit: Mini

With a base MSRP starting at $38,900, the Mini Cooper Countryman is another Consumer Recommended pick that gets 28 miles per gallon. Consumer Reports noted its Mini's largest vehicle, and with its 2025 redesign "has gotten bigger in just about every dimension, and it’s now about the same size as a Subaru Crosstrek."

"But unlike the plebeian Subie, the Mini tries to play in the entry-luxury space. It has an exterior design that looks a bit like a shrunken and more round Land Rover Defender and a fashionable interior with a unique circular touchscreen at the center of the dashboard," it said.

It praised the vehicle's agile handling, short stopping distances, and whimsical character, but dinged it for unintuitive controls and uneven power delivery.

5 / 9

2025 Lincoln Corsair

Credit: Lincoln

With a base MSRP starting at $39,735, the 2025 Lincoln Corsair also made Consumer Reports list, but isn't a recommended pick. It gets an average of 23 miles per gallon.

While the Corsair shares a platform with the Ford Escape, "the more upscale Corsair won’t be confused with the Ford, thanks to its well-appointed cabin, comfortable ride, and lively powertrain," it said. "The pricier Lincoln fulfills on the premium promise, delivering refinement throughout."

It praised the car for its ride, quietness, powertrain, fit and finish, and braking, but said its controls were lacking.

6 / 9

2025 Alfa Romeo Tonale

Credit: Alfa Romeo

With a base MSRP starting at $36,495, the 2025 Alfa Romeo Tonale is the most affordable SUV on Consumer Reports list, but isn't a recommended pick. The SUV gets 33 miles per gallon, and the publication liked that it has a plug-in hybrid electric option.

It praised the SUV's quick acceleration and said the vehicle is fuel-efficient when running as a hybrid. But, it found the Tonale has a stiff ride, a loud cabin, unintuitive controls and said it "lacks [the] typical Alfa Romeo engine sounds and sharp handling."

7 / 9

2025 Audi A3

Credit: Audi

With a base MSRP starting at $38,200, the Audi A3 is a Consumer Reports recommended pick and its highest rated sedan on the list.

"Although you won’t mistake the A3 for Audi’s quieter and more comfortable-riding higher-priced cars, it handily outscores other entry-level competitors, such as the BMW 2 Series Gran Coupe and Mercedes-Benz CLA," the publication said. "We found it to be a thoroughly enjoyable car to drive in most ways, beyond some minor clunkiness and hesitation at low speeds caused by its dual-clutch automatic transmission."

It praised its fuel economy of 31 miles per gallon, and liked its handling and "well-built cabin." It only complained of the car's tight rear seats.

8 / 9

2025 Acura Integra

Credit: Acura

With a base MSRP starting at $33,000, the Acura Integra is the most affordable vehicle on the list. It's also a Consumer Reports recommended pick, with an estimated 31 miles per gallon.

The Integra might be an "upscale version of a Honda Civic," but the site called it a "capable and fun car to drive, with good fuel-efficiency and easy-to-use controls."

Still, it said the Integra is "short on refinement, comfort, and flair for a sporty model from a premium brand." It also felt it had a stiff ride and noisy cabin, though it praised the car's handling, straightforward controls, and hatchback visibility.

9 / 9

2025 Cadillac CT4

Credit: Cadillac

With a base MSRP starting at $34,995, the Cadillac CT4 is a Consumer Reports recommended pick and gets 25 miles per gallon.

"This fresh entry into Cadillac’s lineup delighted our testers by providing engaging, European-inspired driving dynamics," it said. "Although it is slightly roomier than the ATS it replaces, we feel the CT4’s cramped interior and boisterous engine might deter buyers looking for a sedan with luxury accommodations and sporty performance."