Consumer Reports Highlights Best Luxury Cars and SUVs Under $40,000

What's Happening?

Consumer Reports has released a list of the best luxury cars and SUVs available for under $40,000. Despite the average new vehicle price in the U.S. reaching $48,907 in June 2025, these models offer premium features at a more accessible price point. The list includes entry-level versions of luxury vehicles that provide upscale interiors, refined driving dynamics, advanced safety and tech features, and stylish designs. These vehicles present a viable option for buyers seeking new, well-equipped luxury cars without exceeding their budget.

Why It's Important?

The availability of luxury cars and SUVs under $40,000 is significant in the current economic climate, where tariffs and rising prices have pushed many consumers towards used vehicles. These affordable luxury options provide consumers with the opportunity to enjoy high-end features without the financial strain. This trend may influence the automotive market by encouraging manufacturers to offer more competitively priced luxury models, potentially increasing accessibility and diversifying consumer choices.