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Best Luxury Compact Cars

Best Luxury Compact Cars of 2025

Find a luxury compact car that meets all your needs. Each year, our KBB.com editors examine every vehicle and choose the cars on this list based on fuel economy, the best value, safety options, features, technology, level of comfort, driving performance, and more.

How we rate vehicles |
2025 Audi A3
#1
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2025 Audi A3

$39,495
Starting Price

4.6
rating
Expert Rating

28 MPG
Combined Fuel Economy
The 2025 Audi A3 is a fine subcompact luxury sedan with many attractive qualities. It drives well and looks stylish.
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2025 Genesis G70
#1
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$43,850
Starting Price

4.6
rating
Expert Rating

19 MPG
Combined Fuel Economy
The 2025 Genesis G70 is an excellent compact luxury sedan with driver appeal, as well as plenty of features for the money.

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2025 Mercedes-Benz C-Class
#3
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4.5
rating
Expert Rating

29 MPG
Combined Fuel Economy
The 2025 Mercedes-Benz C-Class is one of the more prestigious members of the compact luxury sedan class thanks to its style, tech, and refinement.
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2025 BMW 3 Series
#4
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$47,125
Starting Price

4.4
rating
Expert Rating

31 MPG
Combined Fuel Economy
The 2025 BMW 3 Series remains the small sports sedan to beat for driving enjoyment. Some rivals come close, but none have landed a knockout blow.
2025 Audi A4
#5
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$45,395
Starting Price

4.3
rating
Expert Rating

26 MPG
Combined Fuel Economy
The 2025 Audi A4 is a standout member of the compact luxury sedan class thanks to its style, quality, and driving manners.
2024 Audi A5
#5
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$47,295
Starting Price

4.3
rating
Expert Rating

27 MPG
Combined Fuel Economy
The 2024 Audi A5 is an intriguing approach to the compact luxury car format, shunning the typical sedan for something more rarefied.
2025 Audi A5 Sportback
#5
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4.3
rating
Expert Rating

26 MPG
Combined Fuel Economy
The 2025 Audi A5 Sportback is sleek and practical, offering a different choice from the usual compact luxury sedans.
2024 Audi RS 5
#5
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$80,695
Starting Price

4.3
rating
Expert Rating

20 MPG
Combined Fuel Economy
The 2024 Audi A5 is an intriguing approach to the compact luxury car format, shunning the typical sedan for something more rarefied.
2024 Audi S5
#5
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$58,595
Starting Price

4.3
rating
Expert Rating

23 MPG
Combined Fuel Economy
The 2024 Audi A5 is an intriguing approach to the compact luxury car format, shunning the typical sedan for something more rarefied.
2025 Audi S5 Sportback
#5
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4.3
rating
Expert Rating

23 MPG
Combined Fuel Economy
The 2025 Audi S5 Sportback amps up the performance potential of the superbly sleek and practical A5 Sportback.
2025 Mercedes-Benz CLA
#5
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4.3
rating
Expert Rating

29 MPG
Combined Fuel Economy
The 2025 Mercedes-Benz CLA puts a lot of high class into a subcompact luxury car. That famous badge on the grille isn’t there just for show.
2025 Lexus IS
#12
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$41,610
Starting Price

4.0
rating
Expert Rating

22 MPG
Combined Fuel Economy
The 2025 Lexus IS is something of an elder statesman among compact luxury sedans, yet still worthy of respect.
2025 Volvo S60
#13
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$43,795
Starting Price

3.8
rating
Expert Rating

28 MPG
Combined Fuel Economy
The 2025 Volvo S60 is a good compact luxury sedan, yet pales somewhat when compared with newer contenders.
2025 Alfa Romeo Giulia
#14
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3.7
rating
Expert Rating

26 MPG
Combined Fuel Economy
The 2025 Alfa Romeo Giulia brings charm, verve and even a little romance to the compact luxury sedan class.
2025 Cadillac CT4
#14
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$36,490
Starting Price

3.7
rating
Expert Rating

26 MPG
Combined Fuel Economy
The 2025 Cadillac CT4 compact luxury sedan lineup goes from accessible to truly special.
2024 INFINITI Q50
#16
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$44,200
Starting Price

3.6
rating
Expert Rating

23 MPG
Combined Fuel Economy
The 2024 Infiniti Q50 compact luxury sedan seems like a carryover from an earlier era of automotive transport. And that’s exactly what it is.
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What Our Ratings Mean

  • 0-1.0: This is the rarest group of all because a really bad new car is really, really hard to find these days. We recommend that you pass on any vehicle receiving a rating between 0 and 1.
  • 2.0: Cars landing in this set are also rare. Only true love and limitless passion (or a free vehicle) should allow you to give in to temptation for one of these vehicles.
  • 3.0: Is the vehicle you’re looking at in this range? We’d bet that if you look a little harder, you’ll find a better vehicle at a similar price to fulfill your needs.
  • 4.0: This is the area where the rubber meets the recommendations. The 3-4 range is full of good cars and some great ones. Starting here, it’s OK to listen to your heart.
  • 5.0: These scores represent the cream of the crop, with “5.0” representing, well, near perfection. Any car you choose in this group will treat you very well over time.

How Kelley Blue Book Rates Cars

Rather than pulling random numbers out of the air or off some meaningless checklist, KBB’s editors rank a vehicle to where it belongs in its class. Before any car earns its KBB rating, it must prove itself to be better (or worse) than the other cars it’s competing against as it tries to get you to spend your money buying or leasing.

Our editors drive and live with a given vehicle. We ask all the right questions about the interior, the exterior, the engine and powertrain, the ride and handling, the features, the comfort, and of course, about the price. Does it serve the purpose for which it was built? (Whether that purpose is commuting efficiently to and from work in the city, keeping your family safe, making you feel like you’ve made it to the top — or that you’re on your way — or making you feel like you’ve finally found just the right partner for your lifestyle.)

We take each vehicle we test through the mundane — parking, lane-changing, backing up, cargo space and loading — as well as the essential — acceleration, braking, handling, interior quiet and comfort, build quality, materials quality, reliability.

Meet our editors

Latest Luxury Car NewsMore articles

Driving the 2025 Audi SQ7

In a week of testing, the 2025 Audi SQ7 proves fast, luxurious, and a little behind the times … perhaps in ways you’ll like.

See All the Latest Luxury Car News

FAQ

What is the top-rated vehicle among best luxury compact cars?

Currently, the 2025 Audi A3 tops the list of KBB.com’s best luxury compact cars. After hours of test driving and analysis, our experts assigned the A3 a rating of 4.6 out of 5 stars.

What are the top 3 vehicles among best luxury compact cars?

The 2025 Audi A3, 2025 Genesis G70, and 2025 Mercedes-Benz C-Class are the highest-rated models on KBB.com’s list of best luxury compact cars.

Which of the best luxury compact cars is the most affordable?

The 2025 Cadillac CT4 has a starting price of $36,490, making it the most affordable option on KBB.com’s list of best luxury compact cars.

Which of the best luxury compact cars is the most fuel-efficient?

With a combined fuel economy of 31 MPG, the 2025 BMW 3 Series is the most fuel-efficient vehicle on KBB.com’s list of the best luxury compact cars.

What is the #1 best luxury compact car in America?

Currently the 2025 Audi A3 tops KBB's always up-to-date list of the best luxury compact cars in America. It gets 4.6 out of 5 stars from our car experts, has a starting MSRP of $39,495 and gets 28 MPG. Learn more at Kelley Blue Book.

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