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)

  • Wjtinfwb No confusion on my end, Ghost. The Government has zero role in job creation outside of the legitimate opportunities' created by Government going about it's responsibilities, namely keeping the American people and territory safe from foreign intrusion. Of course, they're failing epically at that but that's a different topic. The American free enterprise system is what enables job creation. Government's role is to stay out of the way of that system, but they seem incapable of doing so. Oil & Gas exploration is just one example. If a National Job Policy is what you're looking for, there are other countries that will be happy to accept your application for residency.
  • Michael Smith I drive 100-300 miles a day in new BMWs, Mercedes-Benzes, and GM SUVs. Some are already equipped with automatic braking.It's the first thing I turn off when I start the car.I've had experiences where (as the author notes) the system gave false alarms and stabbed the brake pedal, threatening my ability to control the car.Further, every driver encounters situations where, for example, legal following distance must be momentarily compromised in order to avoid a difficult situation. When the system intervenes, it disrupts the driver's plan of action. This can lead to a collision as the driver has to suddenly react not to his surroundings, but to the system.Not only is automatic braking an insult to skilled drivers, it's dangerous to everyone.
  • Dave M. My hipster daughter is greatly into it. We watched the race together this weekend. It was interesting but I'm not devoted to it like she is. She'll be at the Austin race in October.
  • Bd2 I'll watch F1 when Kia and/or Hyundai pony (pun intended) up the cash to field a class leading team. Hyundai is leading many series with the Elantra N with it's incredible 350HP Smartstream-R engine.
  • Steve Biro There are 24 races on this year’s F1 schedule. And I guarantee you no more than two will be reasonably exciting, Meanwhile, F1’s reception for Andretti reveals the dark underbelly of the sport. I have followed F1 since the 1960s and, frankly, I am running out of interest. I’ll catch a race if it’s convenient but won’t bother DVRing them.
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