The Best Affordable Luxury Car for First-Time Buyers in 2025

While there isn’t anything wrong with driving a mainstream brand, luxury automakers have an air of appeal to them that can’t be denied. However, premium brands come with premium price tags. If you shop cleverly, though, there are some models that prove to be a great starting point for first time buyers.

While entry-level luxury cars might not have the cutting-edge technology that you’d find in top models, more of that quality trickles down than you would expect. You can still get the refinement and comfort that you’d expect from these high-end brands as long as you’re willing to make some compromises.

One particular model stands out to us as offering exceptional value and starting at a price point that is below the $40,000 mark. While not the cheapest, we think it is one of the best entry-level options out there. We detail everything that helps it stand out in its segment and how you get value out of its tech features and impressive powertrain.

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The Audi A3 Is Affordable And Packed With Value

While not the most outright affordable luxury car that you can buy, the A3 is small and practical, loaded with high-end features, and comes in at a price that is really hard to argue with. Audi has built a name for themselves through delivering refined and comfortable vehicles, and the A3 is no different.

New For 2025

Audi has given their smallest and most affordable car a light refresh for the 2025 model year. The car’s front end, including its headlights and grille, along with its wheels, rear diffuser, and bumpers have been tweaked. It takes on a slightly more aggressive and sportier look than before.

On the inside, Audi has revised the air vents, adding silver trim around them, as well as adding fabric trim throughout the cabin. New lighting elements have also been added. Beyond looks, though, there are very few changes. Audi has added a bit more torque into the mix, though you can expect performance to be pretty similar to the outgoing model.

2025 Trims and Pricing

Audi keeps things simple by only offering two different trims for the entry-level A3. What is most impressive, though, is that, regardless of which model you go with, the list of standard equipment is pretty comprehensive. This means that you don’t have to spend too much more to spec your A3 how you want it.

We’d go for the Premium Plus model as it adds quite a few features for a fairly small jump in price. It comes with adaptive cruise control, lane-keep assist, a memory function for the driver’s seat, and a wireless smartphone charging pad along with keyless entry. For an additional $1,600 you can also get the technology package, which gives you a larger digital gauge display and a more connected navigation system.

Warranties and Maintenance

• Limited Warranty – Four Years/50,000 Miles
• Powertrain Warranty – Four Years/50,000 Miles
• No Complimentary Maintenance

Unfortunately, this is an area where the Audi A3’s competitors pull ahead a bit. The standard warranties on the german sedan are not particularly bad, but there are alternatives on the market with more comprehensive coverage. Audi doesn’t offer complimentary maintenance on the A3, whereas the BMW 2-Series Gran Coupe gets free maintenance for three years or 36,000 miles.

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Audi’s Little Car Offers Much Livelier Performance Than You’d Expect

While obviously not the main concern of those looking for a budget luxury car, having something that is actually enjoyable to drive is always a plus. The A3 is not a sports sedan, but it gets going pretty quickly and delivers playful handling dynamics. Things get even better when you see how efficient it is.

Performance Specifications

Unlike most modern Audis, the A3 only comes with one powertrain choice. Thankfully, its a good one. The turbocharged four-banger pairs with a 48-volt hybrid. The auto-shifting manual transmission also provides some smooth shifting and contributes to the sedan’s impressive fuel efficiency.

All-wheel drive being standard kit is a big plus for the A3, giving it plenty of traction and making it better to drive in tough weather. Though it isn’t a fully-fledged sports sedan, the Audi is playful enough to make sure you’re not bored during commutes. It is also plenty smooth, absorbing most bumps in the road with very little effort.

Fuel Efficiency

If you’re looking for a luxury car on a budget, then fuel economy is likely going to be an important factor for you. While the A3 isn’t as gas-sipping as some mainstream cars, it is pretty light on fuel for its class. This is especially true if you often travel long distances, with its highway estimates being exceptionally high.

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It May Not Be Especially Spacious, But The A3 Is Packed With Tech

Technology is playing more and more of a role in the automotive world as time goes on, especially in the luxury segment. Audi is clearly aware of this and has been producing some of the most impressive cabins on the market. While the A3 is still a budget model, many of Audi’s most impressive features have trickled down into the affordable A3.

Interior Dimensions and Comfort

If tons of interior space is at the top of your priority list, then you might want to give the A3 a skip. The driver and front passenger have ample room to stretch their legs, but taller drivers may feel that the cabin is a little bit cramped. Meanwhile, those relegated to the back may struggle a bit, especially on longer trips. Cargo capacity is also not exactly class-leading, with other options having more room in the trunk.

If you’re not too worried about maximizing space for passengers and cargo, then you’ll find the A3’s cabin to be a pretty nice place to be. While there is evidence that this is a more affordable luxury sedan, with bits of harder plastic here and there, there are also plenty of high-quality materials that make things comfortable.

The design is pretty good, in our opinion, mixing modern technology with traditional European sedan styling to create a welcoming cabin. The seating position is great and the seats themselves are exceptionally comfortable. The only thing that we can see people complaining about is the stubby little gear selector.

Infotainment and Technology

Regardless of which model you opt for, the A3 comes fitted with a digital gauge display. A 10.3-inch unit is standard, but opting for the optional Technology Package gets you the larger 12.3-inch unit. The same package allows you to display the navigation system centrally on the gauge display. The package also adds Traffic Sign Recognition and a six-month subscription to Audi Connect Plus, 4G LTE Wi-Fi connectivity.

A 10.1-inch infotainment screen sits centrally on the dash, which can be controlled via touch or voice commands. Thankfully, climate controls are physical and not accessed via a separate screen like in many of Audi’s other models. Wireless Apple CarPlay and Android Auto are included. The A3 can also be had with a premium 15-speaker SONOS sound system with 3D sound if you opt for the Premium Plus trim.

Plenty of convince features are available too, with a number of USB-C ports in the cabin and a wireless smartphone charging pad being optional equipment.