8 Used Luxury Cars Under $40,000 That Are Totally Worth Buying Krista HillisNovember 2, 2025 at 6:00 PM 5 If you're looking for a vehicle that's under $40,000, you may think a luxury model is out of the question, especially once you factor in repair and maintenance costs, insurance premiums, and depreciation. However, when buying a used car, you have more options. While the initial price tag matters, you should examine the true cost of ownership more closely to make the right car owner moves. Only then can you ensure you stay on budget month after month and year after year.
- - 8 Used Luxury Cars Under $40,000 That Are Totally Worth Buying
Krista HillisNovember 2, 2025 at 6:00 PM
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If you're looking for a vehicle that's under $40,000, you may think a luxury model is out of the question, especially once you factor in repair and maintenance costs, insurance premiums, and depreciation. However, when buying a used car, you have more options.
While the initial price tag matters, you should examine the true cost of ownership more closely to make the right car owner moves. Only then can you ensure you stay on budget month after month and year after year. One of these eight used luxury cars could be yours for under $40,000 and are worth the investment.
Editor's note: All market values are sourced from Kelly Blue Book.
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1. 2024 Acura Integra
acura integra parked backwards
Tricky Shark/Adobe
Market value: $30,256
While you can score the 2025 Integra, starting at $31,885, buying used helps ensure a final price under $40,000, with some to spare. The base Integra is a wise choice. It's praised for its 200 hp engine, allowing drivers to sprint from standstill to 60 mph in about seven seconds. The 2024 Integra also earned the Insurance Institute for Highway Safety (IIHS) TOP SAFETY PICK+ award.
You can expect low maintenance costs, which are around $7,471 for the first 10 years of service, beating the industry average by $1,587.
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2. 2023 Cadillac CT4
cadillac ct v series blackwing display
jetcityimage/Adobe
Market value: $28,012
If you're interested in the Cadillac CT4, the 2023 model is a strong contender for maximizing value. While it's now priced much lower than its original MSRP of $35,790, it has maintained its features and lifespan expectations. Owners praise its strong features, reliability, and styling.
J.D. Power awarded this model year a score of 86 out of 100 for quality and reliability.
3. 2020 Lexus IS (XE30)
lexus is
Belogorodov/Adobe
Market value: $24,170
Lexus stands out when it comes to reliability, which is why it is a wise used car purchase. However, the Lexus IS is an exceptionally good choice, as it strikes a balance between luxury, value, and performance.
While the price of this model has decreased significantly compared to its original MSRP, the 2020 Lexus IS remains a great buy due to its high-quality build materials and dependability. Plus, the annual likelihood of repairs is just 3%, lower than that of other 2020 compact luxury cars.
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4. 2018 Lexus ES 350
car lexus es
Stasiuk/Adobe
Market value: $22,598
Another good pick is the Lexus ES 350, which offers drivers high reliability, top safety, and a luxury experience without a high price tag. This car is ideal for those who prioritize comfort over sport handling, with the 2018 model being a standout choice, especially if you can verify that it was properly cared for. J.D. Power gave this model year a 90 out of 100 rating for quality and reliability.
Concerned about the average total annual cost for repairs and maintenance? The ES 350 will cost you around $468, compared to an average of $739 for luxury midsize cars.
5. 2020 Mercedes-Benz CLA 250 4MATIC
white mercedes benz cla class
vector_master/Adobe
Market value: $23,436
The CLA 250 4MATIC was an all-new design in 2020, complete with a turbo engine, wider stance, and 4MATIC AWD. This model year has an above-average reliability rating, along with a stylish design, luxurious interior, and excellent handling, all at an affordable entry-level luxury price point.
The 2020 model year is a good buy because it offers many high-end features at a price that offers good value in the used car market. Fuel economy is rated 23 mpg in the city, 33 mpg on the highway, and 27 mpg combined, which is respectable considering you're getting a turbocharged engine.
6. 2022 Tesla Model 3
blue tesla model
AS Photo Family/Adobe
Market value: $24,007
Many consider the 2022 Tesla Model 3 an optimal choice, as this model offers class-leading range, nimble handling, a stylish interior, and responsive acceleration. In ideal conditions, you can go up to 358 miles with a battery charge.
When considering the total cost of ownership, the Model 3 offers lower maintenance costs compared to other luxury electric vehicles. A recent study also found that the Model 3 is the nation's most cost-effective car to drive, offering 22% lower annual operating costs than its competitors, according to EV.com.
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7. 2022 Genesis G70
genesis car at the iaa mobility
VanderWolf Images/Adobe
Market value: $24,523
The Genesis G70 is a good used buy based on its performance, advanced features, and overall value. When you get inside a Genesis, you'll appreciate its luxurious interior and quality materials. You'll get a similar luxury experience to this model's European rivals but for thousands less.
You can also expect annual maintenance and repair costs to be less than those of BMW or Mercedes-Benz, according to Consumer Affairs.
8. 2018 Audi A4
white audi quattro luxury stylish car
whitecityrecords/Adobe
Market value: $14,808
If you can find a 2018 Audi A4 that was well-maintained, you could score the top-rated small luxury car in its year class, as rated by owners. Elegant styling, high-quality interior, superb technology, and smooth driving dynamics are just some of the perks.
J.D. Power gave the 2018 A4 an 85 out of 100 rating for quality and reliability, so this car model offers a safe, high-end driving experience at a competitive price.
Bottom line
Shopping for used cars requires research and a realistic budget, so take your time. Many of the luxury cars on this list offer great value, however, the true value of any car relies on how well it was cared for through proper maintenance and regular upkeep.
Always obtain a vehicle history report, staying mindful of the types of used cars you can rely on while staying clear of those that require costly maintenance. Once you find the luxury car of your dreams while staying within your budget, it may also be wise to take steps to save on car insurance.
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Published: November 03, 2025 at 06:19AM on Source: ALPHA MAG
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