8 Cars Under $40K That Still Feel Luxurious

Many drivers think a cool, sporty, fun car is something they'll never be able to afford. But that's not necessarily true.

There are quite a few vehicles that are fun to drive but that will also let you keep more money in your bank account .

If you have $40,000 or less to spend on a new car, truck, or SUV, here are some options that might fit your budget and level of cool. Plus, many of these are considered top cars driven by the most attractive people.

1. Chevrolet Camaro

Courtesy of Chevrolet

Chevy is well-known for its Corvette, particularly with its recent mid-engine redesign. But this car has a starting price of $68,300.

Instead, get a Camaro for a starting price of $32,495. Chevy is discontinuing the car after the 2024 model year, but it's been rumored that the car will make its return, possibly in the form of an EV.

2. Ford Mustang

Courtesy of Ford

The Ford Mustang is another American sports car icon. You can pick it up for a starting price of $31,920. The two-door car is available as either a fastback or convertible.

Even if you add some premium options to bump up the fun factor, you can do so without exceeding your $40,000 budget.

3. Jeep Wrangler

Courtesy of Jeep

The Jeep Wrangler is a great vehicle if you prefer to drive something fun off the beaten path.

The Wrangler Sport is a great way to enter the Wrangler lifestyle with a base price of $32,690 for a two-door version. It comes with a 12.3-inch touchscreen and heated front seats and steering wheel.

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4. BMW 230i

Courtesy of BMW

You may be surprised to see a BMW on this list, but you can get one for under $40,000.

The BMW 230i coupe features a compact two-door design for drivers who want something small and sporty. The car's base price is $39,200, so beware that extras such as parking assist could push you over the $40,000 mark.

5. Hyundai Elantra N

Courtesy of Hyundai

The Hyundai Elantra is a great sedan if you want a well-designed car to get you around without much flash.

On the other hand, if you want something sporty and fun, upgrade to the Elantra N model, which includes a 2.0-liter turbocharged engine, bucket seats, and a variable exhaust valve system.

It only gets 31 miles per gallon compared to the Hyundai Elantra Blue hybrid’s 54 miles per gallon, but you can still afford gas thanks to the $33,700 base price.

6. Ford Bronco

Courtesy of Ford

Even SUVs can be fun to drive if you find the right one. One of those options may be Ford’s iconic Bronco.

The Bronco has a base price of $39,630 and has been in high demand since its 2021 return after being off the market for decades.

The SUV hits close to the $40,000 mark. So, if you enjoy outdoor activities, you may want to include extra cash in your budget for things like a roof rack or front bumper winch.

7. Toyota GR86

Courtesy of Toyota

You may think of a Camry or Corolla when you think of Toyota, but the car manufacturer also has a sporty option that might be more fun.

Check out the Toyota GR86 with a base price of $29,950. The GR86 features a sporty design and a six-speed manual or automatic transmission.

You can also get a free high-performance driving experience with your vehicle to learn more about its sporty track features.

8. Mazda MX-5 Miata

Courtesy of Mazda

The Mazda MX-5 Miata could be a fun option if you’re looking for a two-door version of something sporty to still keep more cash in your wallet .

The MX-5 Miata comes in a convertible version with additional options, such as an interior package with alloy pedals or additional exterior bodywork to give it an extra-sporty look.

The cheapest Sport model has a base price of $28,985, and the highest-end Grand Touring starts at $34,285.

Bottom line

You don’t have to compromise on fun — even if you’re on a budget — when it comes to your next vehicle.

Remember to check with your local bank or financial institution if you need a loan for your vehicle, as their terms may be as good as or better than the loan terms from your dealer.

Also, lower your costs even more by finding ways to save money on car insurance .

Money tips that can work for everyone

No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.

Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.

Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.

Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).