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)

  • Master Baiter If you rear-end someone, it's your fault, period. If motorcycles need more time to stop, then riders need to increase their following distance.
  • Master Baiter Until recently, virtually every cell phone and computer was made in China and no one seemed to care. The majority are still built there. I'm not a fan of tariffs as it just gives domestic makers a price umbrella to sell their garbage products to U.S. consumers at higher prices.
  • Teleedle It would seem that if the Chinese made cars and trucks are ready to compete on the world market that they should be able to compete without the need for government help through subsidies. That's never going to happen with the mindset of their leadership. The rate at which they've transferred the ability to copy to the rate of their abilities to innovate isn't really astounding, but it is truly indicative of their inherent abilities to see through problems and overcome without a lot of fuss. They just have a different way that seems to continually baffle the Western mind. It only goes back a few thousand years. The rest of the world just has to catch up... Without tariffs, three Seagulls could be bought for the price of one loaded Toyota Corolla. I would settle for a nice small pickup truck that can get 30-35 mpg, if the Chinese want to build something with real durability and value. I'm sure they can do that for about $10-12k US, too, dumping them all the way to the bank. Neither Trump or Biden or Bugbrain want that, though. Restrictive 'targeted' tariff ideas indicate that they all want protectionism and the Chicken Tax to continue. The price of living in freedum in the non compete world... and the hallmark of one upmanship by the political class towards more and more expensive transportation related needs. All costs are ALWAYS passed onto the end consumer. Tariffs are the burden of the extra cost. Tariffs are punitive, remember... as intended. The political class is still living off the backs of their constituents throughout the world... same as it ever was.
  • Theflyersfan One day, some of these sellers will come to the realization that cars are not houses and putting expensive upgrades into one doesn't equal a higher selling price down the road. $29,000? The only Challenger that has a chance of value down the road, and only with low miles, is the Hellcat.
  • SaulTigh The Cyclone engine was really powerful, but with a fatal flaw. Ask me how I know.
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