While SUVs and crossovers dominate today’s automotive market, Small Luxury Cars continue to hold significant appeal for discerning buyers. These vehicles offer a blend of maneuverability, fuel efficiency, and premium features, all wrapped in a more compact package. In an era where value is paramount, finding a small luxury car that balances opulence with affordability is key. Beyond the initial MSRP, factors like running costs and long-term reliability play a crucial role in the purchasing decision.
For those seeking a touch of luxury without the hefty price tag, the compact car segment presents some compelling options. While mainstream models like the Honda Civic, Mazda 3, Hyundai Elantra, and Toyota Prius offer practicality and economy, the desire for elevated refinement and premium amenities persists. This article explores five exceptional small luxury cars available for under $42,000, each delivering a unique combination of practicality, performance, and, crucially, the sought-after luxury experience with well-appointed interiors.
To ensure the accuracy and timeliness of this information, data presented here has been compiled from manufacturer websites and reputable automotive sources, including Edmunds, and pricing reflects current MSRP at the time of writing. The vehicles listed are ranked from the most affordable to the most expensive based on their starting MSRP.
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5. Acura Integra
MSRP: $31,800
The Acura Integra, a nameplate resurrected in 2022, marks the return of a beloved small luxury car. Historically a sporty two-door coupe, the Integra now embodies a compact luxury sedan, sharing its foundation with the Honda Civic hatchback. However, Acura elevates the Integra with a more sophisticated interior and a bolder exterior design. Powering every Integra model is a turbocharged four-cylinder engine equipped with VTEC technology, available in various performance levels. Transmission choices include a CVT or a sporty six-speed manual with rev-matching, catering to different driving preferences.
Acura Integra Trim Levels
Integra | $31,800 |
---|---|
Integra A-Spec | $33,800 |
Integra A-Spec Technology | $36,800 |
Integra Type-S | $51,800 |



The Acura Integra stands out as the most budget-friendly luxury sedan in the 2024 market and has achieved top safety accolades from the IIHS. The base Integra and A-Spec trims share a spirited 1.5-liter four-cylinder engine, also found in the sporty Honda Civic Si. For those seeking exhilarating performance, the Integra Type S boasts a potent turbo 2.0-liter four-cylinder engine, borrowed from the Civic Type R.
Performance Specifications
A-Spec | Type-S |
---|---|
Engine | Turbocharged 1.5-liter inline-four |
Transmission | CVT/6-speed manual |
Horsepower | 200 hp |
Torque | 192 lb-ft |
Driveline | FWD |
0-60 MPH | 7.0 seconds |
Data sourced from Acura
Tech & Features
The Acura Integra prioritizes a refined cabin experience across all trims. The interior features tasteful metal accents and soft-touch materials, creating a premium ambiance. Even the base Integra boasts a sporty aesthetic with LED lighting and 17-inch wheels, complemented by a comprehensive suite of standard features, including:
- Leather-wrapped steering wheel
- Eight-way power-adjustable driver’s seat
- Heated front seats
- Leatherette seats
- Moonroof
- Eight-speaker audio system
- Seven-inch touchscreen infotainment system
- Digital Instrument Cluster
- Apple CarPlay and Android Auto
The A-Spec trim enhances the sporty appeal with unique exterior and interior styling, larger 18-inch wheels, and the option for a manual transmission when paired with the Technology Package. This Technology Package significantly elevates the Integra’s luxury quotient, adding:
- 12-way power-adjustable driver’s seat with lumbar adjustment and memory
- Four-way adjustable passenger seat
- Front seats with microsuede inserts
- Dual automatic climate control
- Ambient lighting
- 16-speaker ELS STUDIO 3D premium sound system
- Wireless charging
- Nine-inch touchscreen infotainment system
- Heads-up display
- Wireless Apple CarPlay and Android Auto
- Wi-Fi hotspot capability
- Built-in Alexa
4. Cadillac CT4
MSRP: $34,595
The Cadillac CT4 represents one of the dwindling number of American luxury sedans still available. While the high-performance Cadillac CT4-V Blackwing variant exists, the standard CT4 offers exceptional value as a small luxury car. Available in three trim levels, the CT4 Premium Luxury trim offers an optional V-6 engine, while the Sport trim provides optional performance enhancements like Brembo brakes inspired by the Blackwing.
Cadillac CT4 Trim Levels
Luxury | $34,595 |
---|---|
Premium Luxury | $39,495 |
Sport | $40,695 |
Rear-wheel drive comes standard on all Cadillac CT4 models, with all-wheel drive available as an option across the trim range. The CT4 also prioritizes safety, featuring a robust set of standard safety technologies, including automatic emergency braking, lane-keep assist, rear cross-traffic alert, automatic high beams, forward collision alert, rear parking sensors, and a rearview camera.
Performance Specifications
Engine | Turbocharged 2.0-liter inline-four | Turbocharged 2.7-liter inline-four |
---|---|---|
Transmission | 8-speed automatic | 10-speed automatic |
Horsepower | 237 hp | 310 hp |
Torque | 258 lb-ft | 350 lb-ft |
Driveline | RWD/AWD | RWD/AWD |
0-60 MPH | 6.2 seconds | 4.8 seconds |
Data sourced from Cadillac
Tech & Features
Cadillac, historically synonymous with American luxury, ensures the CT4’s interior lives up to expectations. Despite a somewhat understated exterior, the CT4 boasts a cabin richly appointed with leather and cutting-edge technology. Standard features on the base Cadillac CT4 include:
- Leather-wrapped steering wheel
- 12-way power-adjustable driver’s seat and 8-way front passenger adjustments
- Eight-way power-adjustable passenger seat
- Wireless charging
- Eight-speaker premium audio system
- Eight-inch touchscreen infotainment system
- Cruise control
- Wireless Apple CarPlay and Android Auto
- Keyless entry
- Dual-zone automatic climate control
3. BMW 2 Series Gran Coupe
MSRP: $38,400
The BMW 2 Series Gran Coupe effectively serves as a more compact and front-wheel-drive sibling to the BMW 3 Series. While sharing a numerical designation with the BMW 2 Series Coupe, the Gran Coupe distinguishes itself as a four-door sedan with a sleek, sloping roofline, embodying all the luxury features expected from the BMW marque. Offered with two engine options in North America, the 228i Gran Coupe is the most accessible new BMW in terms of price. For those seeking enhanced performance, the M235i variant provides a significant power upgrade.
BMW 2 Series Gran Coupe Trim Levels
228i Gran Coupe | $38,400 |
---|---|
228i xDrive Gran Coupe | $40,400 |
M235i Gran Coupe | $48,300 |
The BMW 2 Series Gran Coupe starts as a front-wheel-drive 228i model, with BMW’s xDrive all-wheel-drive system available as an upgrade. The higher-performance M235i Gran Coupe exclusively features all-wheel drive.
Performance Specifications
228i Gran Coupe | 228i xDrive Gran Coupe | M235i Gran Coupe |
---|---|---|
Engine | Turbocharged 2.0-liter inline-four | Turbocharged 2.0-liter inline-four |
Transmission | 8-speed automatic | 8-speed automatic |
Horsepower | 228 hp | 228 hp |
Torque | 258 lb-ft | 258 lb-ft |
Driveline | FWD | AWD |
0-60 MPH | 6.3 seconds | 6.0 seconds |
Data sourced from BMW
Tech & Features
True to BMW’s reputation, the 2 Series Gran Coupe offers a wide array of optional features while maintaining a strong foundation of standard equipment. The base 228i model includes 17-inch wheels, synthetic leather upholstery (with optional genuine leather available), and illuminated interior trim. Other standard features on the BMW 228i Gran Coupe include:
- Leather-wrapped steering wheel
- Power-adjustable sports seats
- Automatic high beams
- 10.3-inch digital gauge cluster
- 10-speaker Hi-Fi sound system
- 10.3-inch touchscreen infotainment system
- Apple CarPlay and Android Auto
- SiriusXM Radio
- Dual-zone climate control
- Ambient lighting
- Front- and rear parking sensors
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The optional M Sport Package is a highly desirable upgrade. For an additional cost, it adds a sporty M Sport body kit with a rear spoiler, 18-inch wheels, M Sport suspension, Live Cockpit Plus, an M Sport steering wheel, Shadowline exterior trim, and advanced safety features like BMW’s Active Driving Assistant, lane departure warning, and blind-spot monitoring. This package comes standard on the BMW M235i Gran Coupe.
2. Lexus IS
MSRP: $41,235
The Lexus IS directly competes with established luxury sports sedans like the BMW 3 Series and Mercedes-Benz C-Class. While perhaps not as overtly flamboyant as its European rivals, the Lexus IS distinguishes itself through Lexus’ renowned reliability and a meticulously crafted, high-quality interior. Lexus offers the IS in three distinct trim levels: IS 300, IS 350, and IS 500.
Lexus IS Trim Levels
IS 300 | $41,235 |
---|---|
IS 350 | $44,410 |
IS 500 | $60,020 |
The powerful V-8-equipped Lexus IS 500 F Sport is exclusively rear-wheel drive, while the IS 300 and IS 350 offer all-wheel drive as an option. The IS 300 utilizes a turbocharged four-cylinder engine, and the IS 350 features a naturally aspirated V-6.
Performance Specifications
IS 300 RWD | IS 300 AWD | IS 350 RWD | IS 350 AWD | IS 500 |
---|---|---|---|---|
Engine | Turbocharged 2.0-liter inline-four | Naturally aspirated 3.5-liter V-6 | Naturally aspirated 3.5-liter V-6 | Naturally aspirated 3.5-liter V-6 |
Transmission | 8-speed automatic | 6-speed automatic | 8-speed automatic | 6-speed automatic |
Horsepower | 241 hp | 260 hp | 311 hp | 311 hp |
Torque | 258 lb-ft | 236 lb-ft | 280 lb-ft | 280 lb-ft |
Driveline | RWD | AWD | RWD | AWD |
0-60 MPH | 6.9 seconds | 6.1 seconds | 5.6 seconds | 5.7 seconds |
Data sourced from Lexus
Tech & Features
Beyond its performance capabilities, the Lexus IS excels in build quality and advanced technology. While the infotainment system’s touch-sensitive mouse pad might be considered a unique, if not universally loved, feature, the IS offers a comprehensive tech suite. All-wheel drive adds an extra cost to the IS 300 and IS 350. Standard features on the base Lexus IS 300 include:
- Leather-wrapped steering wheel
- Eight-way power-adjustable driver’s and passenger seat
- Heated front seats (all-wheel-drive models)
- Synthetic leather upholstery
- Eight-inch touchscreen infotainment system
- 10-speaker sound system
- Apple CarPlay and Android Auto
- Dual-zone climate control
- Wi-Fi hotspot capability
The F Sport package is a highly popular option, enhancing the IS 300 F Sport with a more aggressive exterior, 19-inch wheels, heated and ventilated 10-way power-adjustable F Sport seats, and a heated leather-wrapped steering wheel. Notably, all Lexus IS models come standard with Lexus Safety System+ 2.5, encompassing adaptive cruise control, lane-keep assist, blind-spot monitoring, and more.
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1. Genesis G70
MSRP: $41,500
Genesis, Hyundai’s luxury division, offers a range of vehicles known for exceptional value, including the GV60 EV. However, in the realm of luxury compact cars, the G70 stands out as a premier offering. Genesis provides the G70 in two trim levels, 2.5T and 3.3T, each with distinct powertrains.
Genesis G70 Trim Levels
2.5T RWD | $41,500 |
---|---|
2.5T AWD | $43,600 |
3.3T RWD | $49,950 |
3.3T AWD | $52,050 |
The 2.5T models utilize a 2.5-liter turbo-four engine, while the Genesis G70 3.3T boasts a 3.3-liter twin-turbo V-6. Both configurations are available in rear-wheel-drive or all-wheel-drive variants.
Performance Specifications
2.5T | 3.3T |
---|---|
Engine | Turbocharged 2.5-liter inline-four |
Transmission | 8-speed automatic |
Horsepower | 300 hp |
Torque | 311 lb-ft |
Driveline | RWD/AWD |
0-60 MPH | 5.5 seconds |
Data sourced from Genesis
Tech & Features
While delivering competent performance, the Genesis G70 truly shines in its cabin design and material quality. The standard equipment on the Genesis G70 2.5T is arguably the most impressive in this segment, featuring:
- Leather-wrapped steering wheel
- Heated steering wheel (all-wheel-drive models)
- Leatherette surfaces
- Heated power-adjustable front seats
- Dual-zone automatic climate control
- Eight-inch digital gauge cluster
- 10.25-inch touchscreen infotainment system
- Six-speaker sound system
- Apple CarPlay and Android Auto
- SiriusXM Radio
- Adaptive cruise control
- Automatic high beams
- Hands-free trunk release
The 3.3T G70 models come standard with the Sport Advanced package, which includes Brembo brakes, leather seats, heated and ventilated front seats with memory, a wide sunroof, wireless charging, aluminum trim, and a premium 15-speaker Lexicon audio system. For further luxury, the $4,400 Sport Prestige package for the 3.3T adds Nappa leather seats, suede headliner and pillars, a heads-up display, a 360-degree camera, and electronically controlled suspension, solidifying the Genesis G70’s position as a top contender in the small luxury car market.
Conclusion
The small luxury car segment offers a compelling entry point into premium vehicle ownership. These five models – the Acura Integra, Cadillac CT4, BMW 2 Series Gran Coupe, Lexus IS, and Genesis G70 – demonstrate that luxury, performance, and advanced features are attainable without exceeding a $42,000 budget. Each car presents a unique blend of attributes, catering to diverse preferences within the luxury compact car buyer demographic. From the sporty Acura Integra to the feature-rich Genesis G70, these small luxury cars prove that premium driving experiences are accessible to a wider range of consumers than ever before.