Thinking about upgrading to a luxury car but worried about the price tag? You're not alone. Many Canadians dream of that premium driving experience – the comfortable interiors, the advanced technology, the refined performance – but assume it's out of reach financially. 

The good news? It might be more attainable than you think. In fact, with rising car prices, where the average new car costs around $67,000 in Canada, finding ways to save is crucial. This article will show you that "luxury" and "affordable" can go hand-in-hand, especially in the Canadian market for 2025.

We're going to explore some of the cheapest luxury cars in Canada, focusing on models that deliver that upscale feel without the exorbitant cost. So, get ready to discover that you can experience the luxury car life without sacrificing your financial goals. Let's dive in!

Cheapest Luxury Vehicles in Canada for 2025

Before we dive into specific models, it’s important to understand what “cheap” means in the context of luxury vehicles. We’re not talking about basic transportation here – we’re talking about vehicles that offer premium features, refined driving experiences, and a higher level of quality than your average car. However, “luxury” doesn’t have to mean a six-figure price tag. There are smart strategies to find that upscale experience without completely draining your bank account.

One key factor is to focus on the entry-level offerings from established luxury brands. Many renowned automakers offer smaller, less expensive models that still deliver the core brand experience. Another great option is to consider a used luxury car, which can provide significant savings while still offering the high-end features and driving refinement that luxury vehicles are known for. Many luxury cars depreciate quickly in their first few years, meaning you can often find a well-maintained, low-mileage model for a fraction of its original price.

By being strategic about your choices, you can find a new or used luxury car that fits your budget and delivers the premium experience you’re looking for. Now, let’s take a look at some of the most inexpensive luxury car options available in Canada for 2025.

1. 2025 Acura Integra

Price: $39,875 (Canadian MSRP)
Fuel Economy: 7.4 L/100km (Combined)

Pros:

• Dependable and won't cost a fortune to maintain
  
• Refined suspension and steering and even adjustable dampers on some models.
  
• Available stick shift is a big plus

Cons:

• Integra's direct rivals have a bit more oomph under the hood. If you're all about horsepower, this might be a consideration.
  
• You'll probably notice some road noise, especially on roads that aren't perfectly smooth.
  
• Don't expect the super-plush materials you might find in a car that costs twice as much.
  

The 2025 Acura Integra is all about delivering that luxury car feel without emptying your bank account. You're benefiting from Honda's legendary engineering (since it shares a platform with the Civic) but with a definite Acura upgrade.

Acura's engineers have worked their magic on the suspension and steering, making the ride both comfy and surprisingly fun. The available Adaptive Damper System, something you'd usually find on much more expensive rides, lets you adjust how firm the suspension feels – perfect for switching between highway cruising and tackling twisty backroads.

The engine, a 1.5-litre turbocharged four-cylinder, uses Honda's clever VTEC system. Basically, VTEC helps the engine breathe better, giving you good power and decent fuel economy. It's a win-win. And, if you're a purist, the option of a six-speed manual transmission is a real treat. Although it's the cheapest luxury vehicle in Canada, it is still an excellent choice for anyone searching for an upscale experience at a bargain.

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2. 2025 Cadillac CT4

Price: $40,599 (Canadian MSRP)
Fuel Economy: 9.0 L/100km (Combined)

Pros:

• Get the classic rear-wheel-drive feel. Most cars in this price range send power to the front wheels.
  
• There's a potent 2.7-litre turbocharged engine available.
  
• On higher trims, you might find Magnetic Ride Control – a high-tech suspension system that gives you a smooth ride and sharp handling.

Cons:

• The standard 2.0-litre engine doesn't quite have the punch of some of its competitors.
  
• If you regularly have passengers in the back or need a ton of trunk space, the CT4 might feel a bit snug.
  
• While the interior is stylish, you will still notice that the materials used aren’t super-plush.
  

The 2025 Cadillac CT4 is a bit of a rebel in the world of cheap luxury sedans. It's one of the few cars in this class that offers rear-wheel drive as standard. What does that mean for you? A more engaging, balanced driving experience, the kind driving enthusiasts often prefer. 

It's a key part of what makes the CT4 feel like a true sports sedan. Of course, if you live where it snows a lot, all-wheel drive is available.

The base engine is a 2.0-litre turbocharged four-cylinder, which is fine for everyday driving. But, if you want to unlock the CT4's full potential, you should seriously consider the optional 2.7-litre turbo. 

One of the CT4's standout features, available on some trims, is Magnetic Ride Control. This is a suspension system that's usually reserved for more premium vehicles, and not seen in inexpensive luxury cars like the CT4. The result is a ride that's both incredibly comfortable and incredibly controlled.

Shop used Cadillac models on Clutch.

3. 2025 Audi Q3

Price: $42,500 (Canadian MSRP)
Fuel Economy: 9.9 L/100km (Combined)

Pros:

• You get Audi's famous Quattro all-wheel-drive system standard, giving you a more secure and confident feeling in any weather.
  
• The inside of the Q3 feels genuinely premium. The materials are high-quality, and the design is sleek and modern.
  
• You can get features like the Virtual Cockpit, a fully digital instrument cluster that looks fantastic and is super customizable.

Cons:

• Some competitors offer a few more features as standard for the same price.
  
• It's a subcompact SUV, so if you regularly haul a lot of people or cargo, you might find it a bit tight.
  
• The price is somewhat high for the size.
  

The 2025 Audi Q3 is all about bringing that signature Audi experience to a smaller, more affordable package. One of the biggest selling points is that Quattro all-wheel drive comes standard. And this isn't just any AWD system. Quattro is known for being proactive, meaning it's always working to optimize grip and stability, not just reacting when you start to slip. 

The Q3 is built on the same Volkswagen Group MQB platform that underpins a lot of other vehicles, from the VW Golf to the Audi A3. This platform sharing helps keep costs down, but don't think that means Audi has skimped on the details. They've tuned the suspension, steering, and other components to give the Q3 a distinctly Audi feel – refined, comfortable, and responsive.

Inside, you'll find a cabin that feels truly upscale. Audi doesn't cut corners when it comes to materials and design, and the Q3 is a great example of that. An 8.8-inch touchscreen is standard, with a larger 10.1-inch screen available. 

You can also get Audi's Virtual Cockpit, which replaces traditional gauges with a large, customizable digital display. It's not just cool to look at – it's also incredibly practical, putting all the information you need right in front of you.

Shop used Audi Q3 models on Clutch.

4. 2025 Audi A3

Price: $43,400 (Canadian MSRP)
Fuel Economy: 7.9 L/100km (Combined)

Pros:

•  You get a 48-volt mild-hybrid system standard, making the engine start and stop smoother.
  
•  Audi's Quattro all-wheel drive is available, adding confidence when driving in slippery conditions.
  
•  The A3 feels nimble and fun to drive.

Cons:

• The back seat might feel a bit cramped for taller adults.
  
• The trunk isn't huge. It's fine for everyday needs, but if you regularly haul a lot of gear, you might want to check the measurements.
  
• It's not as quick as some of its rivals.
  

The 2025 Audi A3 is a great example of how you can get a genuine luxury car experience in a smaller, more affordable package. One of the things that sets the A3 apart is its 48-volt mild-hybrid system, which comes standard. 

Now, this isn't a hybrid that can drive on electric power alone. Instead, it's a clever system that helps the gasoline engine work more efficiently. It makes the start/stop system (where the engine shuts off at stoplights to save fuel) much smoother, and it gives you a little extra oomph when you accelerate. You'll notice it in the car's responsiveness and at the gas pump.

Like the Q3, the A3 is built on the Volkswagen Group's versatile MQB platform. This platform is used for a wide range of cars, which helps keep development costs down. But, again, Audi has done its own thing to make sure the A3 feels like a true Audi. The suspension is tuned for a comfortable yet sporty ride, and the steering is precise.

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5. 2025 Lexus UX 300h

Price: $43,605 (Canadian MSRP)
Fuel Economy: 6.0 L/100km (Combined)

Pros:

• You'll save serious money at the gas pump – the UX 300h is a full hybrid
  
• Lexus has a legendary reputation for reliability
  
• All-wheel drive is standard, which provides added grip and security.

Cons:

•  It's not a powerhouse. The focus here is on efficiency, not blistering acceleration.
  
•  If you need to haul a lot of stuff, the cargo area might feel a bit cramped.
  
• The infotainment system isn't the most intuitive.
  

The 2025 Lexus UX 300h is all about efficiency and peace of mind. It's a full hybrid, which is a big deal. Unlike the "mild hybrids" we've discussed, the UX 300h can actually drive on electric power alone for short distances, typically at lower speeds. 

This is why its fuel economy, especially in city driving, is so impressive. You'll be visiting gas stations far less often. The hybrid system combines a 2.0-litre gasoline engine with an electric motor and a continuously variable transmission (CVT). CVTs are designed to maximize fuel efficiency, though some drivers find them less engaging than traditional automatic transmissions.

Another major advantage of the UX 300h is Lexus's stellar reputation for reliability. Far from marketing hype, Lexus consistently ranks at or near the top in reliability surveys. This translates to fewer headaches and potentially lower long-term ownership costs. All in all, the UX 300h is arguably the best cheap luxury SUV available in Canada.

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6. 2025 Volvo XC40

Price: $46,900 (Canadian MSRP)
Fuel Economy: 8.9 L/100km (Combined)

Pros:

• The XC40 is packed with advanced safety features
  
• It has a distinctive, Scandinavian-inspired design that's both stylish and practical.
  
• Inside, you'll find a comfortable and well-designed cabin.

Cons:

• The base engine, while adequate, isn't particularly thrilling
  
• The infotainment system can still be a bit complicated to use at times.
  
• The ride can be a little on the firm side.

The 2025 Volvo XC40 is the entry point to the Volvo SUV lineup, but it doesn't skimp on what makes a Volvo a Volvo: safety. This is a car company that has built its reputation on protecting its occupants, and the XC40 is a rolling testament to that commitment. 

You get a comprehensive suite of advanced safety features as standard, including things like automatic emergency braking, lane-keeping assist, and a system that can even detect and help you avoid oncoming traffic. It's like having an extra set of eyes on the road.

But the XC40 is more than just a safe car – it's also a stylish one. It has a distinctive, boxy design that sets it apart from the crowd, and the interior is a masterclass in Scandinavian minimalism. It's clean, uncluttered, and made with high-quality materials. 

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7. 2025 Alfa Romeo Tonale

Price: $47,495 (Canadian MSRP)
Fuel Economy: 3.1 Le/100km (Combined)

Pros:

•  The Tonale is a plug-in hybrid (PHEV), which means you can drive for up to 53 kilometres without using any gasoline.
  
• It's an Alfa Romeo, and that means it's got Italian style in spades.
  
• It's got a sporty feel that makes even everyday commutes more enjoyable.

Cons:

• Alfa Romeo's reliability record isn't the best.
  
• While the interior is stylish, the materials and overall build quality might not quite match some of its German rivals.
  
• It offers a small cargo area.
  

The 2025 Alfa Romeo Tonale brings a dose of Italian flair and a plug-in hybrid powertrain to the cheap luxury SUV segment. This is a big deal. As a PHEV, the Tonale lets you plug it in at home or at a public charging station, and you can drive up to 53 kilometres on electric power alone. 

If your daily commute is shorter than that, you could potentially do most of your driving without using a drop of gasoline. And when the electric range runs out, the gasoline engine kicks in, so you don't have to worry about being stranded. This combines a 1.3-litre turbocharged four-cylinder engine that powers the front wheels with an electric motor that drives the rear wheels, effectively providing all-wheel drive.

Of course, it wouldn't be an Alfa Romeo without a healthy dose of style. The Tonale is a sharp-looking SUV with a distinctive front grille and sleek lines. It's definitely a car that will get noticed. 

8. 2025 BMW X1

Price: $47,500 (Canadian MSRP)
Fuel Economy: 8.8 L/100km (Combined)

Pros:

• The X1 feels sporty and responsive, with sharp handling and a well-tuned suspension.
  
• BMW's xDrive all-wheel-drive system comes standard, giving you grip and stability in all conditions.
  
• Inside, you'll find a modern and well-designed cabin with high-quality materials and BMW's latest iDrive infotainment system.

Cons:

• The X1 can get pricey, especially when you start adding options.
  
• While the engine is responsive, some drivers may find the ride a little firm.
  
• The rear seats could offer more legroom
  

The 2025 BMW X1 is the smallest and most affordable SUV in BMW's lineup, but it doesn't sacrifice the brand's core values: driving pleasure and premium quality. Even though it shares a platform (the UKL2 platform) with some MINI models and the BMW 2 Series Gran Coupe, the X1 feels distinctly like a BMW. 

The steering is precise, the suspension is well-controlled, and the overall driving experience is more engaging than you might expect from a small SUV.

The X1 comes standard with BMW's xDrive all-wheel-drive system. This AWD system is a sophisticated setup that can intelligently distribute power between the front and rear wheels, maximizing grip and stability whether you're on dry pavement, wet roads, or even snow. The standard engine is a 2.0-litre turbocharged four-cylinder.

Inside, the X1 features BMW's latest iDrive infotainment system, which includes a large, curved display that combines the digital instrument cluster and the central touchscreen. It's a modern and visually impressive setup, and it's generally user-friendly, although it can take a little time to learn all of its features.

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9. 2025 Lexus IS 300

Price: $48,258 (Canadian MSRP)
Fuel Economy: 9.6 L/100km (Combined)

Pros:

• You have the option of rear-wheel drive, which is a hallmark of sports sedans.
  
• Lexus is practically synonymous with reliability.
  
• The inside of the IS 300 is a comfortable and well-crafted space. 

Cons:

• The base engine isn't as powerful as some of the turbocharged engines found in competitors.
  
• If you frequently have passengers in the back, they might find the legroom a bit limited.
  
• The infotainment system isn't as user-friendly as some others. 

The 2025 Lexus IS 300 is a compact luxury sports sedan that offers a compelling blend of style, comfort, and, importantly, Lexus's legendary reliability. One of the key things that sets the IS 300 apart is the availability of rear-wheel drive. 

While all-wheel drive is also an option, the RWD configuration gives the car a more balanced and sporty feel, something driving enthusiasts often appreciate. It's a characteristic that's becoming increasingly rare in this segment.

The base IS 300 comes with a 2.0-litre naturally aspirated four-cylinder engine. "Naturally aspirated" means it doesn't have a turbocharger. This gives the engine a more linear power delivery – the power builds smoothly as the engine revs climbs.

Some people prefer this feel to the sometimes abrupt power surge of a turbocharged engine. However, it also means the base IS 300 isn't quite as quick off the line as some of its turbocharged rivals. Coming in under $50,000, the IS 300 is a cheap luxury vehicle that still delivers the reliability and performance of a more premium car.

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10. 2025 Cadillac XT5

Price: $48,399 (Canadian MSRP)
Fuel Economy: 9.9 L/100km (Combined)
Rating: 3.9/5

Pros:

•  As a mid-size SUV, you get significantly more space than in any of the other cars on this list
  
• There's an available V6 engine option that provides a noticeable boost in power.
  
• The XT5 prioritizes a smooth, quiet ride. 

Cons:

•  Can get expensive as you add options and move up to higher trim levels.
  
• The V6 engine isn't particularly fuel-efficient.
  
• The interior and overall design can feel a bit dated
  

The 2025 Cadillac XT5 stands out on this list because it's the only mid-size SUV. All the other vehicles we've covered are compact sedans or subcompact SUVs. This means the XT5 offers considerably more interior space, both for passengers and cargo. If you have a family, or you regularly need to carry a lot of gear, the XT5 is going to be a much more practical choice.

The base engine is a 2.0-litre turbocharged four-cylinder, which is perfectly adequate for everyday driving. However, there's also an optional 3.6-litre V6 available, and it's a significant upgrade. The V6 provides smoother acceleration and more power for passing and merging on the highway. Keep in mind, though, that the V6 will also use more fuel.

Inside, the XT5 is designed for comfort. The seats are supportive, the ride is smooth, and the cabin is generally quiet. The infotainment system is reasonably user-friendly. It's not the most cutting-edge system out there, but it gets the job done.

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Find a Huge Selection of Cheap Luxury Vehicles at Clutch

So, there you have it. The dream of owning a luxury car doesn't have to remain a dream, even if you're on a budget. As this list demonstrates, there's a surprising range of affordable luxury vehicles available in Canada for 2025, offering everything from sporty sedans and fuel-efficient hybrids to spacious SUVs. 

The key is to carefully consider your priorities. Do you crave the sporty handling of rear-wheel drive? The exceptional fuel economy of a hybrid? The added space and practicality of an SUV? Or maybe you're simply looking for the best possible value and the lowest long-term ownership costs. Whatever your needs, there's likely a vehicle on this list that fits the bill.

Ready to find your perfect cheap luxury car? Visit Clutch.ca and explore our extensive inventory of used vehicles, including many of the models we've discussed. 

Learn more about our hassle-free online buying process, our financing options, and our convenient sell your car option. You can even return your car using our 10-day money-back guarantee. Start your search with Clutch today!