Most Affordable Luxury Cars

Entry-level luxury cars offer most of the bells and whistles of higher-end models, but at a reasonable price.

Preparing to plunk down $61,715 on a brand-new Lexus LS 460? Save your money. Instead, buy a $30,000 IS 250. Toss in another $5,000 worth of options, and you get the prestige of the Lexus plus many of the same bells and whistles, including heated and ventilated front seats, bi-xenon headlights and an optional sound system that includes a DVD player.

Call it the trickle-down theory of economics for cars. For a fraction of the price of their more expensive counterparts, entry-level models are getting top-of-the-line features.

Consider the 2008 Cadillac CTS. It allows customers (with some options) to play music off an iPod, a memory stick, a CD, satellite radio or terrestrial radio. It even allows the customer to pause and rewind live radio broadcasts.

The $32,500 (estimated) car, which goes on sale in August, also boasts an innovative "infotainment" system that uses several digital formats. Besides music, the dashboard system can play DVD movies when parked. The optional navigation system runs off the car’s hard drive, as opposed to a removable DVD or CD-ROM. As technology improves, customers will someday be able to download updates wirelessly.

It makes sense that starter luxury cars are increasingly being outfitted with top-of-the-line features, says George Peterson, president of Tustin, Calif.-based auto industry consulting firm AutoPacific.

"Entry-level luxury cars need to demonstrate the capability of their brand — just as the more premium entries do," he says. "As more and more has been added at the top of the pile... these features become expected as part of the standard [or typical] feature load of even the lowest level luxury-brand vehicle."

Examples for the mechanically inclined include: six-speed manual transmissions or automatic transmissions with up to seven speeds that you can shift manually if you want.

To get more than four automatic gears or to shift your automatic manually, you used to have to buy a Porsche with a Tiptronic transmission, or a six-speed BMW, or even a Ferrari, with Formula One racing-style "paddle" shifters mounted on the steering wheel.

Technical Touches

But as much as transmissions have improved, nothing is trickling down faster in this digital age than electronic gizmos, especially car stereos, and new-and-improved navigation systems.

It takes three to five years for automakers to make substantial changes to the car itself, but the lifecycle for electronics gear can be six months long, says J. Ferron, automotive partner at PricewaterhouseCoopers in Detroit.

"So there's an eight times shorter cycle [for electronics]," Ferron says. "There’s a collision between that and what’s shaped in the marketplace in terms of customer expectations versus what a car can do."

Some of the vehicles on this list can have 10 or more audio speakers, as much wattage as an in-home system, half a dozen ways to download and swap music between formats, plus many different ways to control it — buttons on the dash, buttons on the customer's MP3 device, buttons on the steering wheel or even voice control.

Sounds great, but keep in mind that "entry level" is a relative thing. The most expensive car on our list is the redesigned 2008 Porsche Cayenne, at $44,295 (including required $895 delivery). That’s not cheap, but it's the least-expensive Porsche. All the cars (and two trucks) here are the least-expensive new models offered by their respective luxury brands. Since it’s nearly fall, most are already 2008 models, but a few are 2007s, pending model year changeover.

The least expensive overall is the little Volvo C30, an all-new 2008 model, at $23,395 (also including delivery). Even so, it comes standard with a six-speed manual transmission, a feature that once was found only on high-end BMWs.

"These entries today need to be fully featured and are," says Peterson. "They need to support their brand identity and mostly do."

Audi A3 2.0T
Starts at $25,340

The 2007 A3 has several features that once were found exclusively on more expensive cars, like a six-speed manual transmission; an optional six-speed automatic, which can be shifted manually; and electronic brake-force distribution to reduce skids. Thanks to turbocharging, the A3's standard four-cylinder engine produces 200 horsepower. Optional upgrades include a more powerful six-cylinder engine with Audi Quattro all-wheel drive.

BMW 328i
Starts at $33,175

The least-expensive BMW--until the 1 Series lands next year--the 2007 328i has a 230-hp, six-cylinder engine. A six-speed manual transmission is standard. The optional six-speed automatic has a "Steptronic" mode, for manual gear selection without a clutch. High-tech brakes include Brake Standby, which almost but not quite applies the brakes when the driver suddenly lifts off the accelerator pedal, anticipating hard braking.

Cadillac CTS
Starts at $32,500 (estimated)

Sales of the 2008 model start in September.

The 2008 CTS, with a 304-hp, 3.6-liter V-6 engine, is a redesigned model. Its innovative "infotainment" system uses several digital formats. Besides music, the dashboard system can play DVD movies when parked. The optional navigation system runs off the car's hard drive, as opposed to a removable DVD or CD-ROMs. As technology improves, customers will someday be able to download updates wirelessly.

Infiniti G37
Starts at $32,000 (estimated)

Sales of the 2008 model start in August.

The G37 Coupe, with a 330-hp V-6 engine, replaces the 2007 G35. Optional features include advanced four-wheel active steering, where the rear wheels help steer the car. Like the Cadillac CTS, the optional navigation system shows "3-D" landmark buildings. And like some more expensive cars, the G37 has optional "intelligent cruise control," which, within limits, maintains a set distance to the vehicle ahead.

Jaguar X-Type 3.0
Starts at $34,995

X-Type sales are down more than 40% year to date through May, but the entry-level 2008 model Jag has its fans. The X-Type has standard all-wheel drive, which is unusual but "trickling down" among luxury cars. Other upscale features include electronic brake force distribution to prevent skids, wood trim and a 120-watt sound system.


Land Rover LR2
Starts at $34,700

The smallest Land Rover is an all-new 2008 model, with a 230-hp, 3.2-liter V-6 engine. Like its bigger siblings, it can "wade" across streams up to about 20 inches deep. Its six-speed automatic transmission has different settings for different slippery conditions. The LR2 isn't exactly roughing it, however: It has a nine-speaker, 320-watt audio system with an MP3 plug-in.

Lexus IS 250
Starts at $30,970

The 2007 Lexus IS 250 has a once-rare six-speed manual transmission, plus a 204-hp, 2.5-liter V-6 engine. An optional luxury package includes features that were scarce a few years ago, like heated and ventilated front seats; bi-xenon headlights; adaptive headlights, which redirect the beam of light around a corner for better visibility. An optional sound system includes DVD-audio and DVD-video playback.

Lincoln MKZ
Starts at $29,305

The 2008 MKZ on sale now has a powerful, 263-hp V-6 engine and a size advantage over some of its entry-level competitors. Options include a thumping 600-watt, 14-speaker audio system.




Mercedes-Benz C300
Starts at $31,975

2008 model goes on sale August 7.

The 2008 C300 Sport Sedan, the first all-new C-Class since 2000, has a 228-hp, six-cylinder engine. (There is also a slightly pricier "Luxury" variant.) Features from the flagship S-Class include a computer hard drive for the optional navigation system. "Selective damping" debuts first on the C-Class. It automatically provides a stiffer ride in sporty driving and a softer, smoother ride for highway cruising.

Porsche Cayenne
Starts at $44,295

The 2008 Cayenne, on sale now, is a new generation of the Porsche SUV. The priciest vehicle on our list is the third most powerful (after the Cadillac CTS and Infiniti G37), with a 290-hp, 3.6-liter V-6 engine. It goes from zero to 60 mph in 7.5 seconds, one second faster than the old Cayenne. Bi-xenon headlights are standard.


Saab 9-3
Starts at $26,995

The Saab 9-3 2.0T Sport Sedan has a 210-hp, turbocharged, 2.0-liter four-cylinder engine.

A six-speed manual transmission is standard. A five-speed automatic with manual shifting capability is optional. A 150-watt, seven-speaker audio system is standard. A nine-speaker Bose system is optional. Like most luxury cars, even entry-level ones, anti-lock brakes, traction control and stability control are standard.

Volvo C30
Starts at $23,395

Even the cheapest of our entry-level luxury cars has a six-speed manual transmission standard. Volvo calls the base model "Version 1.0." The upgraded model is "Version 2.0." A five-speed automatic with manual-shifting capability is optional. A turbocharged, five-cylinder engine previously shared with some of the bigger, more expensive models produces 227 hp. A glass hatchback is probably the single most distinguishing feature.
(C)Forbes

Luxury car, but crummy bumper

Insurance group's low-speed crash tests reveal weaknesses in cars' first line of defense.

In tests designed to replicate low-speed impacts, the bumpers of several luxury cars failed to prevent costly damage. In one case, a Mercedes-Benz C-class sedan sustained almost $5,500 in damage when hit in its front bumper at a speed of just 6 miles per hour.

The Insurance Institute for Highway Safety conducted four separate low-speed impact tests on 11 popular luxury cars.

The cars struck a barrier, designed to mimic the bumper of another car, straight-on from the front and from the rear at six miles per hour and diagonally into front and rear corners at three miles per hour. The Institute, a private organization funded by insurance companies, estimated repair costs after each test.

"[W]hat the test results don't reflect is the Mercedes-Benz holistic approach to occupant safety," Mercedes-Benz said in a statement. "This philosophy influences design and development even down to the front bumper, which is specifically mounted lower to help reduce injury for impacts with pedestrians (to avoid contact above the knee)."

The C-class performed poorly in large part because its front bumper slid down below the impact barrier during the test.

The vehicle sustaining the most total damage was the Infiniti G35, made by Nissan, which had total estimated repair costs of $14,000. In the straight-on front impact test alone, the G35 sustained $5,223 in damage.

"The cost of vehicle ownership and repair are important considerations at Infiniti," Nissan said in a statement. "We design each new model to resist low-speed collision damage and will continue to work closely with major insurance companies to keep premiums low for our customers."

The Insurance Institute's tests do not reflect likely real-world results, Nissan said.

The best-performing vehicle in the test was the Saab 9-3. Its total estimated repair costs for all four tests was $5,243, less than what the Mercedes-Benz would have cost to fix after just one front impact.

The Institute wasn't enthusiastic about even the Saab's performance in these tests, however.

"There's nothing exemplary about even the best performer, the Saab 9-3," said vice president Joe Nolan in a statement. "It simply avoided racking up the most damage in any single test and ended up coming out the best in a mediocre lot."

Saab said in a statement that it was proud of the 9-3's top-ranked performance in these tests.

In an earlier round of tests, released in early March, midsize non-luxury cars didn't fare much better. A Nissan product was the worst performer in those tests as well with the Nissan Maxima suffering a total of $9,051 worth of damage.

Many luxury and non-luxury cars suffer from the same problems, according to the Institute: bumpers that are simply too weak, impact absorbing structures that don't extend far enough to the corners and bumpers that are designed with visual appeal rather than damage control as the top priority.

Underneath body-colored plastic exteriors, most bumpers have metal beams that are supposed to absorb crash forces. These beams can be too weak or not placed where needed to adequately protect against various types of impacts.

In some cases, the Institute said, car bumpers can slide under the bumper of another vehicle during an impact, exposing headlights, grills and body sheet metal to damage.

Luxury cars have the additional problem of expensive replacement parts. A headlight for a Lexus ES costs $1,046, according to the Institute. (Headlights were damaged in 15 or the 22 front impact tests the Institute conducted.) The front bumper cover for an Audi A4, one of the best performing vehicles in the tests, costs nearly $600, according to the Institute. That doesn't include installation and painting costs.

Luxury car bumper tests

Estimated repair costs following Insurance Institute for Highway Safety bumper tests

Test Front full width Front corner Rear full width Rear corner Total damage Saab 9-3 $1,476 $1,076 $1,722 $969 $5,243 Audi A4 $976 $2,038 $918 $1,899 $5,831 Lincoln MKZ $1,001 $1,966 $2,330 $669 $5,966 BMW 3-series $3,658 $1,256 $989 $778 $6,681 Acura TSX $1,693 $1,274 $3,430 $1,157 $7,554 Volvo S60 $4,517 $543 $2,142 $1,022 $8,224 Lexus IS $4965 $2,223 $1,922 $737 $9,577 Lexus ES $3,921 $2,093 $3,709 $1,101 $10,824 Mercedes-Benz C-class $5,486 $963 $3,728 $877 $11,054 Acura TL $4,985 $1,244 $3,814 $1,156 $11,199 Infinit G35 $5,223 $3,544 $4,035 $1,181 $13,983

(C)CNN