According to Kelley Blue Book (KBB), the average new car sells for around $48,000, with Bloomberg reporting that the skyrocketing price of luxury cars is dragging the average up.
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However, some of the most respected names in the auto industry are selling true luxury vehicles for less than $40,000.
All five of the following cars and small SUVs offer entry-level but genuine luxury that belies their sticker prices while punching above their weight with stylish designs, thoughtful tech and impressive power.
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Lexus UX Hybrid
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Starting MSRP: $37,715
The 2025 Lexus UX Hybrid is a luxury crossover equipped with a 196-horsepower hybrid engine that gets 43 combined miles per gallon. The Lexus Safety System+ 3.0 comes standard, as do paddle shifters and the Drive Mode Select feature. Car and Driver gives it eight out of 10 stars, lauding its luxurious interior and refined powertrain.
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Audi Q3
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Starting MSRP: $39,800
Car and Driver gives the Audi Q3 8.5 out of 10 stars, citing its premium interior materials, impressive standard tech and “serene” cabin. It seats five, can generate 228 horsepower and vaults from 0 to 60 in 7.1 seconds. Audi Quattro AWD is standard and it expands to 48 cubic feet of storage space with the rear seats folded down.
Alfa Romeo Tonale
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Starting MSRP: $36,535
KBB gives the plug-in electric Alfa Romeo Tonale 4.1 out of five stars for its “Italian flair” and rarity — there are so few of them on the roads that anyone who has one is bound to turn heads. However, KBB is mostly taken by the Tonale’s impressive power — the Alfa boasts a best-in-class 285 horsepower and best-in-class 347 pound-feet of torque.
Lincoln Corsair
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Starting MSRP: $39,735
Lincoln Corsair owners who posted reviews on Edmunds gave the luxury SUV 4.2 out of five stars. Edmunds experts point to its comfortable ride, many standard driver-assist features, available plug-in hybrid engine and, of course, its sub-$40,000 starting price.
Lincoln notes that Consumer Reports ranked its BlueCruise driver-assist suite the best of all it tested, and chronicles its impressive cabin, featuring personalized profiles and Perfect Position seats.
Buick Envision
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Starting MSRP: $36,500
The Buick Envision seats five and gets up to 28 mpg. Edmunds hails the compact crossover for its smooth ride, quiet interior and impressive menu of features for the price. The Envision boasts first-class seating up front and in the back, and its enormous 30-inch ultrawide screen is the largest in its class. A comprehensive suite of driver-assist features comes standard and its sleek and stylish exterior includes an oversized grille and heavily-accented front fascia.
Editor’s note: Photos are for representational purposes only.
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This article originally appeared on GOBankingRates.com: 5 Luxury SUVs That Cost Under $40K
