Best Luxury Small Cars for 2024
The best used and new luxury small cars based on a data-driven analysis of each vehicle's reliability, resale value and safety.
The best luxury small car is the Lexus IS 350 based on our analysis of 12 million vehicles to assess their reliability, resale value and safety. Its overall rating of 9.1 out of 10 reflects the IS 350’s reliability, value retention and safety scores. A new Lexus IS 350 costs between $43,260 and $46,510 while a used version costs between $34,892 and $49,795. This luxury small car can seat up to 5 people and is EPA rated to deliver up to 23 miles per gallon in mixed city/highway driving.
The Luxury Small Car category consists of 36 models priced between $27,300 and $153,350 for new vehicles and between $19,531 and $133,825 for used vehicles. iSeeCars has sufficient vehicle data to rate and rank 24 of these 36 models based on their reliability, value retention and safety scores.
Why Should I Buy a Luxury Small Car?
The best small luxury cars prove that sometimes the best things come in small packages featuring excellent driving dynamics, premium interiors, advanced tech and safety features, and high fuel efficiency. Many small luxury cars offer all-wheel drive (AWD) either standard or as an option, giving them all-weather capability.
There are plenty of options to consider when seeking the right small luxury car, as there are many variables to choose from. Many of the vehicles on the list come in multiple body styles, including sedans, convertibles, coupes, or even hatchbacks for added cargo space. They also offer a wide range of engine choices across models and trims, ranging from fuel-efficient four-cylinders to turbocharged six cylinders or V8s in performance-oriented models. They also offer varying levels of safety and tech features across trim levels. The luxury small car list includes both compact luxury cars like the BMW 3 Series and the Audi A4 as well as smaller subcompact cars like the BMW 2 Series and the Mercedes-Benz A-Class.
Because small luxury cars have smaller price tags than larger cars and crossover SUVs, they are often viewed as entry-level luxury cars.
What Are the Best Small Luxury Cars?
The luxury automakers on this list have multiple vehicles in the small car segment with different levels of luxury and performance. The Lexus IS luxury sedan starts with its “300” and offers a 241-horsepower turbocharged four-cylinder engine, an eight-speed automatic transmission, and rear-wheel drive. The IS 350 has a 311-horsepower V6 engine with available all-wheel-drive models. The new for 2022 IS 500 has a 472-horsepower V8 engine that can achive zero to 60 in 4.4 seconds. Each configuration comes with a full suite of standard safety features and technology features, including an 8-inch touchscreen infotainment system, Apple CarPlay, Android Auto, and Bluetooth. Lexus also offers the RC coupe, which is more performance-oriented.
Audi is also a well-represented automaker on the list with its A3 subcompact car and its A4 and A5 compact cars. These cars also have corresponding high-performance S/RS variants, including the top-performing RS3, RS4, and RS5, as well as sporty hatchback or “sportback” models. New car versions of the A3 are available as just a sedan after the convertible (or “cabriolet”) version was discontinued in 2020. These vehicles feature Audi’s fun-to-drive ride quality and are full of standard and available tech and safety features. The Audi vehicles’ base four-cylinder engines return the best fuel economy, while their range-topping 444-horsepower twin-turbocharged V6 engines are found in their RS configurations.
Mercedes-Benz and BMW also have multiple vehicles on the list. The Mercedes-Benz C-Class offers one of the most premium interiors in its class and has a lineup of powerful engine and powertrain options. The C-Class has a 2.0-liter turbocharged four-cylinder with 255 horsepower and 273 pound-feet of torque in its base engine, while turbocharged V6s and V8s are available in its high-performance AMG configurations. Its competitor, the BMW 3 Series, provides an engaging driving experience and has one of the most spacious trunks in the luxury small car class. It also features a split-folding rear seat for extra cargo room. The base 3-Series has a turbocharged four-cylinder engine, while its M3 performance variant has a turbocharged six-cylinder. A plug-in hybrid is also available. Standard features include power-adjustable front seats, a leather-wrapped steering wheel, multi-zone automatic climate control, a universal garage door opener, a moonroof, an auto-dimming rearview mirror, and rain-sensing windshield wipers.
What Other Vehicles Should I Consider?
If you want a more affordable small car like a Honda Civic or a Mazda3, check out our Best Small Cars list from mainstream automakers. Or if you want a larger car, check out our list of the Best Luxury Midsize Cars. If you want a high-performance luxury car, check out our list of the Best Luxury Sports Cars. There’s also our List of the Best Electric Cars, which includes sporty Tesla models and other luxury electric vehicles.
Why Should I Buy a Luxury Small Car?
The best small luxury cars prove that sometimes the best things come in small packages featuring excellent driving dynamics, premium interiors, advanced tech and safety features, and high fuel efficiency. Many small luxury cars offer all-wheel drive (AWD) either standard or as an option, giving them all-weather capability.
There are plenty of options to consider when seeking the right small luxury car, as there are many variables to choose from. Many of the vehicles on the list come in multiple body styles, including sedans, convertibles, coupes, or even hatchbacks for added cargo space. They also offer a wide range of engine choices across models and trims, ranging from fuel-efficient four-cylinders to turbocharged six cylinders or V8s in performance-oriented models. They also offer varying levels of safety and tech features across trim levels. The luxury small car list includes both compact luxury cars like the BMW 3 Series and the Audi A4 as well as smaller subcompact cars like the BMW 2 Series and the Mercedes-Benz A-Class.
Because small luxury cars have smaller price tags than larger cars and crossover SUVs, they are often viewed as entry-level luxury cars.
What Are the Best Small Luxury Cars?
The luxury automakers on this list have multiple vehicles in the small car segment with different levels of luxury and performance. The Lexus IS luxury sedan starts with its “300” and offers a 241-horsepower turbocharged four-cylinder engine, an eight-speed automatic transmission, and rear-wheel drive. The IS 350 has a 311-horsepower V6 engine with available all-wheel-drive models. The new for 2022 IS 500 has a 472-horsepower V8 engine that can achive zero to 60 in 4.4 seconds. Each configuration comes with a full suite of standard safety features and technology features, including an 8-inch touchscreen infotainment system, Apple CarPlay, Android Auto, and Bluetooth. Lexus also offers the RC coupe, which is more performance-oriented.
Audi is also a well-represented automaker on the list with its A3 subcompact car and its A4 and A5 compact cars. These cars also have corresponding high-performance S/RS variants, including the top-performing RS3, RS4, and RS5, as well as sporty hatchback or “sportback” models. New car versions of the A3 are available as just a sedan after the convertible (or “cabriolet”) version was discontinued in 2020. These vehicles feature Audi’s fun-to-drive ride quality and are full of standard and available tech and safety features. The Audi vehicles’ base four-cylinder engines return the best fuel economy, while their range-topping 444-horsepower twin-turbocharged V6 engines are found in their RS configurations.
Mercedes-Benz and BMW also have multiple vehicles on the list. The Mercedes-Benz C-Class offers one of the most premium interiors in its class and has a lineup of powerful engine and powertrain options. The C-Class has a 2.0-liter turbocharged four-cylinder with 255 horsepower and 273 pound-feet of torque in its base engine, while turbocharged V6s and V8s are available in its high-performance AMG configurations. Its competitor, the BMW 3 Series, provides an engaging driving experience and has one of the most spacious trunks in the luxury small car class. It also features a split-folding rear seat for extra cargo room. The base 3-Series has a turbocharged four-cylinder engine, while its M3 performance variant has a turbocharged six-cylinder. A plug-in hybrid is also available. Standard features include power-adjustable front seats, a leather-wrapped steering wheel, multi-zone automatic climate control, a universal garage door opener, a moonroof, an auto-dimming rearview mirror, and rain-sensing windshield wipers.
What Other Vehicles Should I Consider?
If you want a more affordable small car like a Honda Civic or a Mazda3, check out our Best Small Cars list from mainstream automakers. Or if you want a larger car, check out our list of the Best Luxury Midsize Cars. If you want a high-performance luxury car, check out our list of the Best Luxury Sports Cars. There’s also our List of the Best Electric Cars, which includes sporty Tesla models and other luxury electric vehicles.
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 8.996416 / 10
- Value Retention 8.159278 / 10
- Safety 10 / 10
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 8.70649 / 10
- Value Retention 7.98296 / 10
- Safety 10 / 10
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 8.698115 / 10
- Value Retention 7.36299 / 10
- Safety 10 / 10
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 8.63185 / 10
- Value Retention 7.294381 / 10
- Safety 10 / 10
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 7.7 / 10
- Value Retention 7.957117 / 10
- Safety 10 / 10
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 8.358429 / 10
- Value Retention 7.292946 / 10
- Safety 10 / 10
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 8.171991 / 10
- Value Retention 7.46027 / 10
- Safety 10 / 10
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 7.959123 / 10
- Value Retention 7.462326 / 10
- Safety 10 / 10
9. BMW 3 Series (hatchback)
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 8.016859 / 10
- Value Retention 7.107346 / 10
- Safety 10 / 10
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 6.6 / 10
- Value Retention 7.821267 / 10
- Safety 10 / 10
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 8.471659 / 10
- Value Retention 7.461193 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 8.3 / 10
- Value Retention 7.590717 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 6.2 / 10
- Value Retention 7.374356 / 10
- Safety 10 / 10
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 7.637696 / 10
- Value Retention 7.88752 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 7.671991 / 10
- Value Retention 7.848078 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 7.0 / 10
- Value Retention 8.42896 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 7.0 / 10
- Value Retention 7.858211 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 7.2 / 10
- Value Retention 7.62546 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 7.0 / 10
- Value Retention 7.451524 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 6.0 / 10
- Value Retention 8.44129 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 7.2 / 10
- Value Retention 7.195471 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 5.8 / 10
- Value Retention 8.01034 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 6.0 / 10
- Value Retention 7.320966 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability 5.8 / 10
- Value Retention 7.194323 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability Coming soon
- Value Retention 8.149986 / 10
- Safety 10 / 10
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability Coming soon
- Value Retention 8.07819 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability Coming soon
- Value Retention 7.923431 / 10
- Safety Not Available
Mercedes-Benz A-Class
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability Coming soon
- Value Retention 7.922248 / 10
- Safety Not Available
Cadillac ATS
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability Coming soon
- Value Retention 7.749762 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability Coming soon
- Value Retention 7.654223 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability Coming soon
- Value Retention 7.481347 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability Coming soon
- Value Retention 7.480653 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability Coming soon
- Value Retention 7.459433 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability Coming soon
- Value Retention 7.394723 / 10
- Safety Not Available
Jaguar XE
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability Coming soon
- Value Retention 7.173021 / 10
- Safety Not Available
iSeeCars Best Car Rankings are calculated based on an analysis of data from over 12 million cars that assesses how long each vehicle lasts and how well it retains its value over time, along with safety data from the National Highway Traffic Safety Association
See how we rank these cars- Reliability Coming soon
- Value Retention Coming soon
- Safety Not Available
Related Best Cars
Related Most Affordable Cars
Related Best AWD Cars
How We Rank These Cars
iSeeCars Best Car Rankings are calculated based on the latest research by our data science team and the National Highway Traffic Safety Administration (NHTSA).
We analyze data from over 12 million new and used vehicles in our Longest-Lasting Cars and 5-Year Depreciation Studies, combined with the NHTSA's Safety Ratings to give you an unbiased guide to the best vehicles in each segment.
After being evaluated, vehicles with the highest average scores earn a spot in the iSeeCars Best Car Rankings. (No final score is given to vehicles missing a score in any of the categories, but scores for other categories are still shown.)
Vehicles are scored in three categories:
Reliability | 33.3%
The reliability score represents an analysis of iSeeCars' proprietary research on the longest-lasting vehicles.
Value Retention | 33.3%
The value retention score is based on our data science team's statistical analysis and prediction of 5-year depreciation from MSRP to determine which cars hold their value best, using US Bureau of Labor Statistics data to adjust for inflation.
Safety | 33.3%
The safety score is calculated based on the last five years of crash test ratings from the National Highway Traffic Safety Administration (NHTSA) and incorporates the latest Top Safety Pick information from the Insurance Institute for Highway Safety (IIHS).