Buy/Drive/Burn: The $40,000 Luxury Sedan Answer for 2018

Corey Lewis
by Corey Lewis

Perusing the responses to Matthew Guy’s QOTD post about the ideal $40,000 vehicle, three sedans kept surfacing in the comments. All three were compact, all of them had engines of identical displacement, and all of them were restrained by a price ceiling — meaning no optional extras.

Today we’ll narrow the $40,000 field to these three, and see which one you’d buy with your own bank’s money.

We end up with very different sedan offerings today, due to methodology: The trim selected is the closest possible to $40,000.

Cadillac ATS

Built atop GM’s Alpha platform with the CTS, the ATS was a new compact sedan venture for Cadillac — its first compact model since the ill-fated Cimarron. Sales since its 2013 debut haven’t been as strong as General Motors prefered, leading to an announcement earlier this year that 2018 would indeed be the final year for the sedan version of the ATS. The coupe lives on — for now. Our strict budget of $40,000 allows us only the base, all-wheel drive ATS. Equipped with the boosted 2.0-liter Ecotec, the ATS distributes 272 horsepower and 295 lb-ft of torque to all four wheels via an eight-speed automatic. $37,495.

Jaguar XE

Jaguar’s XE compact sedan debuted for the 2016 model year. Jaguar waded once more into a sedan segment it abandoned a few years before, repressing memories of the shockingly bad Mondeo Leather Edition (also known as the X-Type). The XE shares Jaguar’s iQ platform with the F-Pace CUV and its larger sedan brother, the XF. Jaguar offers a stunning 34 trim levels of the XE, which is surely a modern record for sedan variation. Today we can afford the 6th trim from the bottom of the barrel, which is known as the 20d Premium. That d stands for diesel, so the 2.0-liter engine here makes 180 horsepower, but 318 lb-ft of torque. All that torque goes to the rear wheels via the eight-speed automatic. $39,825.

Mercedes-Benz C-Class

The C-Class is nothing new for the three-pointed star, which has produced the 190E’s successor since the early 1990s. The model’s fourth generation debuted for the 2015 model year, adding a cabriolet offering to the sedan and coupe lineup in North America. Other markets still have the option of a C-Class wagon. It’s the most expensive car of our trio, which means the absolute cheapest C300 is our specification today. The turbocharged 2.0-liter delivers 241 horsepower and 273 lb-ft of torque, sent to the rear wheels via the 9G-TRONIC nine-speed automatic. $40,250.

Three Aces of Bases of luxury; which one’s a Buy?

[Images: GM, Jaguar Land Rover, Mercedes-Benz]

Corey Lewis
Corey Lewis

Interested in lots of cars and their various historical contexts. Started writing articles for TTAC in late 2016, when my first posts were QOTDs. From there I started a few new series like Rare Rides, Buy/Drive/Burn, Abandoned History, and most recently Rare Rides Icons. Operating from a home base in Cincinnati, Ohio, a relative auto journalist dead zone. Many of my articles are prompted by something I'll see on social media that sparks my interest and causes me to research. Finding articles and information from the early days of the internet and beyond that covers the little details lost to time: trim packages, color and wheel choices, interior fabrics. Beyond those, I'm fascinated by automotive industry experiments, both failures and successes. Lately I've taken an interest in AI, and generating "what if" type images for car models long dead. Reincarnating a modern Toyota Paseo, Lincoln Mark IX, or Isuzu Trooper through a text prompt is fun. Fun to post them on Twitter too, and watch people overreact. To that end, the social media I use most is Twitter, @CoreyLewis86. I also contribute pieces for Forbes Wheels and Forbes Home.

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  • DEVILLE88 DEVILLE88 on Oct 10, 2018

    Buy the Caddy,burn the Benz, drive the Jag!

  • GenesisCoupe380GT GenesisCoupe380GT on Apr 07, 2020

    Buy the Caddy(from personal experience oil changes with this car are surprisingly cheap and the top-spec V6 engine sounds like a G35 coupe under acceleration, plus it requires only 87 octane) Drive the Benz(leasing a Mercedes may be cheaper but servicing it sure as hell won't be) Burn the Jag(British cars may have a hard life in this country but they certainly don't make it easy on themselves. And where I live there's only three Jaguar/ Land Rover dealers in the whole state)

  • TheEndlessEnigma My '16 FiST: Oil changes, tires, valve cover gasket (at 112k miles), coolant flush, brakes.....and that's itMy '19 Grand Caravan: Oil changes, coolant flush
  • John Clyne I own a 1997 GMC Suburban that I bought second hand. It was never smoked in but had lost the new car smell when I got it four years after it was sold new. I own a 2005 Chevrolet Avalanche & that still has the new car smell. I like the smell. I could never afford a new car until the Avalanche. It might be my last new car? Why do they build cars with fire retardant materials in them. Smoking rates are falling & if someone continues to smoke in this day & age is a fool especially with all the information out there.
  • Theflyersfan Non-performance models, probably the Civic based on the fact the interior feels and looks better in the Honda. Both of them are going to drive like adequate appliances with small engines and CVTs and get decent mileage, so this is based on where my butt will rest and things my hands and fingers will touch.Toyota doesn't have an answer to the Civic Si so the Honda wins by default.CTR vs GR Corolla. One dealer by me is still tacking on $10,000 markups for the CTR and good luck with the GR Corolla and the "allocation" system. There's that one dealer in Missouri that I pasted their ad a while back wanting $125,000 for a mid-level GR. Nope. But cars.com is still showing markups. Both of these cars will have little depreciation for a while, so the markups equal instant loss. It looks like Cincinnati-area dealers are done with CTR markups. So this is a tough choice. I don't like the Corolla interior. It looks and feels inexpensive. I'm glad Honda toned down the exterior but the excessive wing still looks immature for such an expensive car that 20-somethings likely cannot afford. FWD vs AWD. With price being an object, and long-term maintenance a thing, I'd go with the Honda with a side eye at the Golf R as a mature choice. All with stick shifts.
  • ChristianWimmer Great first car for someone’s teenage daughter.
  • SCE to AUX Imagine the challenge of trying to sell the Ariya or the tired Leaf.
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