Luxury Car Buying Guide

Sedans
The entry point of the luxury-vehicle range resides with models such as the Acura Integra, Audi A3, BMW 2 Series, and Mercedes-Benz CLA. These cars bridge the gap between mainstream cars and true luxury vehicles. Despite premium badges and higher prices, some models may be missing standard features found on a well-equipped, less expensive mainstream car.

Stepping up in price, the BMW 3 Series has reigned as one of the top performers in CR’s testing for decades. It’s joined by the Acura TLX, Audi A4, Cadillac CT4 and CT5, Genesis G70, Lexus IS, and Mercedes-Benz C-Class. And with consumer interest in EVs on the rise, there’s the Tesla Model 3, the company’s popular entry-level car. Many of these models have two roomy front seats but fairly cramped rear seats.

Their larger counterparts embody the definition of true luxury—and steadily increasing prices. A few notable models include the Audi A6 and A8, BMW 5 Series and 7 Series, Genesis G80 and G90, Lexus ES and LS, Mercedes-Benz E-Class and S-Class, and Volvo S90.

Luxury EVs are certainly gaining traction with well-heeled buyers, as seen with the BMW i4 and i7, Lucid Air, Mercedes-Benz EQE and EQS, Polestar 2, Porsche Taycan, and Tesla Model S, to name a few.

These exclusive chariots bring greater levels of interior room, ride comfort, quietness, performance, and refinement. Some ultraluxury models have quite long wheelbases (the distance between the axles) that enable limolike rear-seat space.

What you’ll spend: The least expensive entry point in this category hovers close to $40,000, which quickly escalates by adding a few options to popular models like the BMW 3 Series and Mercedes-Benz C-Class. But those models close in on $50,000 rather quickly once trim levels and feature packages are added. Dipping a toe into the pool of top-notch models here will set you back anywhere from around $48,000 for a midlevel Lexus ES 350 to well over $100,000 for the best from Audi, BMW, Lexus, Lucid, Mercedes-Benz, Porsche, and Tesla.

SUVs
Luxury SUVs also run the gamut from small to jumbo. Some of the subcompact and small players include the Audi Q3, BMW X1 and X2, Buick Encore GX, Cadillac XT4, Lincoln Corsair, Mercedes-Benz GLA and GLB, Range Rover Evoque, and Volvo XC40. These are comfortable for two occupants, snug for four, and downright tight if a fifth adult comes along for the ride. Likewise, carrying cargo is limited by the vehicles’ compact proportions. Many of these smaller models deliver agile handling and return fuel economy in the low to mid-20s mpg.

One step larger, compact models include the Acura RDX, Audi Q5, Buick Envision, BMW X3, Cadillac XT5, Genesis GV70, Infiniti QX50, Lexus NX, Mercedes-Benz GLC, Porsche Macan, and Volvo XC60. While subcompact SUVs are based on front-wheel-drive platforms, many compact models are rear-drive based and offer sportier handling dynamics.

There are also more electric-only options than ever before. Joining the small EV SUV ranks are the Audi Q4 E-Tron, Genesis GV60, Lexus RZ, and Tesla Model Y. A touch larger, the Audi E-Tron, BMW iX, Cadillac Lyriq, Jaguar I-Pace, and Tesla Model X come with all-electric powertrains. And more are on the way from Fisker, Polestar, and others.

Moving up to the midsized SUV category brings more room but also higher prices. Models include the Acura MDX; BMW X5; Buick Enclave; Cadillac XT6; Genesis GV80; Infiniti QX60; (Land Rover) Defender, Discovery Sport, and Range Rover Velar; Lexus GX, RX, and TX; Lincoln Aviator and Nautilus; Mercedes-Benz GLE; and Porsche Cayenne.

Over the past several years, some manufacturers have brought out coupelike SUVs—that is, they have a swoopy rear roofline that makes them look like coupes, but they retain four doors and are still classified as SUVs. The Audi Q8, BMW X4 and X6, Infiniti QX55, Mercedes-Benz GLE Coupe, and Porsche Cayenne Coupe are a few of these rare examples.

Full-sized luxury models are at the top of the money-is-no-object food chain in the world of SUVs. Some examples include the Audi Q7, BMW X7, Cadillac Escalade, Infiniti QX80, Lexus LX, Lincoln Navigator, Mercedes-Benz GLS, Range Rover and Range Rover Sport, Tesla Model X, and Volvo XC90.

Some of the midsized and larger models have three rows of seats to accommodate up to eight people. Like many luxury sedans, hybrid, plug-in hybrid, and all-electric powertrains are gaining traction, but traditional V6 and V8 engines remain the most prevalent.

What you’ll spend: Prices for the always popular luxury SUVs run the gamut from the mid-$30,000s to around $100,000. For many of the rich and famous, nothing less will do.

Sporty Luxury Cars
It used to be that sporty luxury coupes owned a bigger chunk of the market, but they’ve lost some popularity over the years. Some manufacturers, though, are sticking it out. Models include the Audi A5, a full range from BMW, the Jaguar F-Type, the Lexus LC and RC, and the Mercedes-Benz CLE, among others.

Sporty luxury cars tend to favor a rear-wheel-drive configuration to aid performance dynamics, but many are available in all-wheel drive. A range of four-cylinder, V6, and V8 powertrains is offered. Some even offer hybrid and fully electric systems.

You can expect sporty luxury cars to have nicely finished leather and wood interiors, the latest electronic features, and engaging driving experiences.

Some may trade ride comfort, interior room, and access or visibility for better cornering ability, increased performance, or stylish exteriors.

What you’ll spend: None are inexpensive. These models start at $45,000 and reach over $100,000.

Seating
The larger sedans and three-row SUVs are all spacious enough to function as good day-to-day commuter cars and family vehicles. The smaller sedans and coupes trade sporty driving for tiny back seats. But given that these are in the luxury segment, expect to see the availability of heated and cooled seats, and driver’s seats with multiple power adjustments, including side bolsters and thigh-support extensions. Some models, like those from Mercedes-Benz and others, offer a massage feature for front passengers. Talk about luxury!

Engines and Fuel Economy
Four-cylinder engines, many with turbochargers, are the most common entry-level engine for these cars. Powerful V6s and V8s come with the fanciest models. Keep in mind that most of these models require premium fuel.

Most luxury cars come exclusively with an automatic transmission, usually offering between six and nine speeds. More speeds (gears) in a transmission can help a car get better fuel economy without sacrificing performance. Many luxury car transmissions allow manual shifting, typically through paddles mounted on the steering wheel, giving the cars a more performance-oriented feel when desired. Manual transmissions are few and far between and are generally limited to smaller and sportier models.

Hybrid systems, once relegated to near-fringe economy cars, are now widespread in almost every luxury segment. The fuel-economy champion here is the Lexus NX350h hybrid SUV, which returned 38 mpg overall in CR’s tests. On the other end of the spectrum, the V8-powered Infiniti QX80 came in at just 15 mpg.

Electrified models, whether full electric or plug-in hybrid, are getting much more popular. Tesla is the best known here, but pure electric vehicles from Audi, BMW, Cadillac, Mercedes-Benz, Porsche, and others have been gaining ground. Every year it seems that the all-electric models offer longer and longer cruising ranges. The Lucid Air, for example, offers models with 400 to 500 miles of cruising range. The Tesla Model S has an Environmental Protection Agency rating of up to 405 miles. The Cadillac Lyriq comes in at an estimated 314 miles of range. And the EPA estimates that the Ford Mustang Mach-E delivers between 224 and 312 miles of driving.

Cargo and Towing
Trunk sizes vary widely by model. Some sedans can accommodate a week’s worth of groceries with room left over. On the other hand, coupes and convertibles have barely any cargo space at all. SUVs also vary widely as to how much stuff they can haul.

Most luxury SUVs have tow ratings of 3,000 pounds for small car-based crossovers to more than 8,000 pounds for traditional truck-based vehicles.

Safety and Advanced Driver Assistance Systems
Consumer Reports’ safety ratings include assessments of crash-avoidance capabilities and crash-test results, based on tests performed by the federal government and insurance industry. And our road tests detail issues regarding child seat installation and headlight performance.

Forward collision warning (FCW), automatic emergency braking (AEB) with pedestrian detection, and blind spot warning (BSW) are crash-avoidance technologies that CR says should be standard on all vehicles. These should be on the next new or used model you buy.

FCW technology provides a visual, audible, and/or tactile alert to warn the driver of an impending collision with a car or an object directly in its path. AEB responds to an imminent collision, braking if the driver does not react in time. BSW monitors a vehicle’s flanks, warning the driver that another vehicle is alongside, where it may be difficult to see.

Other modern safety advances include telematics systems that can alert emergency personnel if an airbag deploys, such as GM’s OnStar service; lane departure warning systems that sound an alert if the driver changes lanes without signaling; lane keeping assist to maintain the vehicle’s position in the lane if the driver starts to drift; and rear cross traffic warning (RCTW), which monitors the sides of the vehicle when the driver is backing out of a parking spot and can even apply the brakes if needed. (Learn more about car safety.)

As with any type of car, the first decision to make in choosing the right one is whether you should buy new or used.

Buying a brand-new luxury car certainly has its benefits. New models have the very latest safety gear and engineering improvements, not to mention a bumper-to-bumper factory warranty. With a new vehicle, you know what you’re getting; you don’t have to worry about potential service problems or concealed collision damage. Further, you can have your choice of color, trim line, and option level. And financing rates are typically lower than for a used vehicle.

The crucial drawback of buying a new one is rapid depreciation. A new car can shed a third or more of its value in its first two or three years on the road. If you finance the new car with a low down payment, you can easily find yourself “upside down” on the loan, where you owe more than the car is worth.

Used cars can be a welcome alternative. The used-car market is about three times the size of the new-car market, so there are often plenty of choices. A 2- to 3-year-old car has already taken its biggest depreciation hit and should have a majority of its useful life ahead of it. Dealerships tend to have many nearly new luxury cars that have returned from leases. These are typically available as certified pre-owned cars, backed by an extended warranty. 

Modern cars, if soundly maintained, can run for 200,000 miles or longer. Material and corrosion-resistance improvements mean rust isn’t nearly as big a problem as it was years ago.

Again, focus on reliability when selecting a good new or used car, even if the vehicle is still covered by its original factory warranty. Check with Consumer Reports to find those that have top-notch reliability scores. (See our guide to car reliability.)

Whether buying new or used, it’s important to do a little homework to choose a good model and to follow that up with effective negotiation.

Browse the Consumer Reports Used Car Marketplace.