7 Cheap Luxury Cars You Can Buy on a Budget in 2024

The words “luxury” and “cheap” don’t usually get tossed around together, but there are exceptions. When it comes to cars, you can get certain luxury models for prices well below the average — and you don’t even have to hunt around for bargains. Many 2024 luxury cars have sticker prices below what you would normally expect to pay for a new car.

Whether these cars qualify as “cheap” depends on your definition of cheap. Cars in general have been selling at historically high prices in recent years due to the combination of supply chain issues, rising raw material costs and overall inflation. It’s not easy finding a “cheap” car no matter where you look.

The average transaction price (ATP) for a new vehicle in January 2024 was $47,401, according to the latest report from Cox Automotive’s Kelley Blue Book. That might sound steep, but it actually represented a 2.6% decline from the previous month and a 3.5% dip from the previous year.

The average price paid for a luxury brand vehicle in January was $60,978, down from $62,834 in December and the lowest average transaction price since the summer of 2021. Luxury car prices in January fell 9.7% year over year.

Sales incentives for luxury vehicles averaged 6.2% of ATP in January, according to KBB. That was down slightly from December but more than double the prior year’s average.

“It is common to see lower transaction prices and sales in January, as December typically is a hot month for luxury vehicle sales,” Erin Keating, executive analyst for Cox Automotive, said in a Feb. 12 press release. “However, the year-over-year new-vehicle ATP decline of 3.5% is notable. Prices have been trending downward for roughly six months now as automakers are sweetening deals to keep the sales flowing.”

If you’re in the market for a luxury car but want to pay a comparatively cheap price, here are seven models, according to the TrueCar website, that you should be able to snag for less than $40,000.

• Starting MSRP: $32,995
• Starting market average: $32,743
• Average savings off MSRP: $252

• Starting MSRP: $35,990
• Starting market average: $35,521
• Average savings off MSRP: $469

• Starting MSRP: $36,895
• Starting market average: $35,093
• Average savings off MSRP: $1,802

• Starting MSRP: $39,395
• Starting market average: $38,361
• Average savings off MSRP: $1,034

• Starting MSRP: $39,790
• Starting market average: $39,258
• Average savings off MSRP: $532 

• Starting MSRP: $41,235
• Starting market average: $38,556
• Average savings off MSRP: $2,679

• Starting MSRP: $43,645
• Starting market average: $39,932
• Average savings off MSRP: $3,713