You aren’t faced with as many restrictions as you may think when you shop for a sedan under $40k. This is the starting point for some of the more affordable luxury sedans, while top-tier economy models and even a few sports sedans can be found. This means you get some of the best variety, but it also opens the door to middling options if you don’t choose wisely. To help you weave the line between value and economy, we have already ranked the best sedans under $40k in 2024.

Characteristics of Sedans Under $40,000

With a much broader price range to work with, there are fewer commonalities between the various brands and models. However, focusing closer on the cost ceiling, there are a number of factors to look out for if you want to get the most bang for your buck. These include:

What to Consider Before Buying a Sedan Under $40k

When you're thinking of spending close to $40,000 on a new, there isn’t much room for mistakes. These are generally quite well-rounded cars but they are still not the best of the best. To make sure you maximize your gains and minimize any potential shortcomings, here are some general pros and cons of sedans around $40k:

Pros

• Entry point to many top-end luxury brands
• Growing number of PHEV and electric models
• Practical, everyday commuters and executive sedans
• Great performance options
• Plenty of standard features

Cons

• Naturally more expensive than average economy cars
• Battle between comfort, performance, and practicality
• Performance models are heavy on the gas
• Tech-laden cars are prone to problems

FAQs

What’s the best sedan under $40k?

There are a lot of great options from several different categories at this price point in the USA. One that superbly combines a number of factors such as performance, technology, comfort, and value is the Genesis G70. Alternatively, the Volvo S60 is a reliable pick from midsize luxury sedans under $40k, though its PHEV model, which is even better, is outside the given price range.

What’s the best sports sedan under $40k?

If you are looking for great speed and handling, then the Kia Stinger is hard to beat. You won’t get access to the twin-turbo V6 unless you spend more, but the turbo-four is still plenty of fun and not nearly as thirsty. Regardless, the Stinger handles superbly and its interior is surprisingly upscale. The fact that it’s also practical is just icing on the cake if you plan to use it as a daily driver.

Are there any electric sedans for less than $40k?

Most manufacturers go the performance route when it comes to electric sedans. Just look at the Tesla Model S Plaid or Porsche Taycan. For buyers who want something a little tamer or more practical, there are actually some sub-$40k electric crossovers such as the Volkswagen ID.4, Hyundai Kona, or Tesla Model Y. We will likely see popular sedans like the Toyota Camry or Honda Civic get the electric treatment and earn a spot in the top sedans under $40k.