Luxury Cars Below $40k Are Increasingly Rare
The average price of a new car in the United States is getting closer and closer to the $50,000 mark. For buyers looking to get behind the wheel of a luxury model, the options are increasingly scarce. Take BMW, for instance: The German brand has only a few models left at under $50k, and if you want a sub-$40k BMW, well, there’s only one of those left. Let’s take a closer look at the cheapest new BMW for sale, along with one or two others hovering at just above $40k. These prices are based on the brand’s currently available models.
What Is The Cheapest New BMW?
BMW has started switching over to the 2026 model year for some models, including the base 228 Gran Coupe, which starts at $39,600. It’s officially the cheapest new BMW and the only model from the brand to start at below $40k. It also benefits from the updates made to the 2 Series Gran Coupe range late last year.
Despite having an extra pair of doors and a larger cabin than the normal 2 Series Coupe, the Gran Coupe is marginally cheaper, likely due to the fact that it has a simpler front-wheel-drive layout, as opposed to the two-door 2 Series Coupe’s enthusiast-pleasing rear-wheel-drive setup. But is this cheap BMW worth considering, or should you save up for a more prestigious 3 Series?
Base 228 Gran Coupe Doesn’t Appear As Basic As You’d Think
The 228 GC comes with BMW’s M Sport Exterior as standard, which goes a long way towards giving this BMW a more premium look. The package includes an M aerodynamic kit, 18-inch bi-color wheels, and Shadowline exterior trim. LED headlights and LED daytime running lights complete the look.
Only Alpine White non-metallic paint is standard, though. The metallic options cost $650 and include vivid colors like Portimao Blue, Vegas Red, and the striking Thundernight (pictured below), the latter being a deep purple hue.
Not everyone loves the design of the 2 Series GC, but we appreciate that it doesn’t look as basic as the “cheapest BMW model” tag suggests.
A Modern And Well-Equipped Cabin
Several of the latest BMW models, from the X3 to the 5 Series, feel like a downgrade in terms of interior quality when compared to their predecessors. The cost-cutting is less jarring inside the 228 GC, given its price point. Yes, there are a few harder plastics here and there, but it feels like a solidly built vehicle.
Facing the driver is BMW’s Curved Display, made up of a 10.25-inch gauge cluster and a 10.7-inch touchscreen interface. BMW’s latest iDrive system can be a bit overwhelming, simply because there are so many screen icons to navigate through, but responses are quick. Unfortunately, you have to use the screen to control certain climate settings, as the brand follows the trend of abandoning traditional controls.
The sporty seats get Veganza imitation leather as standard, available in a variety of hues. Some of these colors, combined with the youthful ambient lighting, give the interior a welcome lift. Rear-seat space falls short of a 3 Series or X1, but children or two smaller adults will be fine.
BMW’s most affordable model comes with standard items like dual-zone automatic climate control, heated and power-adjustable front seats with a driver’s memory system, front/rear parking sensors, an automatic parking assistant, and a Harmon Kardon sound system.
A panoramic roof and more advanced driver-assistance gear will cost extra, and it’s possible to spend nearly $50k on a fully loaded 228 GC. At that price, a 330i is a much better alternative, so we’d recommend sticking to a base or lightly optioned 228 GC if you’re looking for an affordable BMW.
Performance: Outclassing Its Key Rival
Powering the least expensive BMW is a 2.0-liter four-cylinder turbocharged engine developing 241 horsepower and 295 lb-ft of torque. Sending power to the front wheels only via a seven-speed dual-clutch automatic, the 0-60 mph sprint takes 6.1 seconds. For $2,000 more, the 228 xDrive all-wheel-drive variant’s extra traction reduces the benchmark sprint time to 5.8 seconds.
The 2025 Mercedes-Benz CLA 250 Coupe is one of the BMW’s main rivals, and it appears outclassed on paper. The Mercedes is less powerful (221 hp and 258 lb-ft), slower (0-60 in 6.3 seconds), and significantly pricier at $44,400. However, the most sensible option in this segment appears to be the Audi A3 Sedan. It gets AWD as standard, costs the least ($38,200), and is the quickest to 60 (6.0 seconds).
Overall, the cheapest BMW feels quick enough and suitably sporty, even if it lacks the pure driving character of older BMW models.
Other Affordable BMWs
If you’re willing to spend a bit more than the 228 Gran Coupe, there are a few other new BMWs worth considering.
BMW 230i Coupe: $41,200
Assuming you don’t need a practical car, this is the “cheap” BMW that most closely adheres to the brand’s philosophy of building driver’s machines. It gets RWD as standard, while the 2.0-liter turbo-four makes a bit more power than the 228 GC, at 255 hp. As a result, it’s quicker and handles better than the 228 GC, but the rear seats are cramped. An xDrive derivative costs $2,000 more.
BMW X1 xDrive28i: $41,350
As the most affordable BMW SUV, the base X1 has a few clear advantages over the 228. It gets AWD as standard, has a far larger back seat and trunk, and is very nearly as quick. The layout of the interior and the list of standard features are largely similar to the base 228.
BMW X2 xDrive28i: $42,850
The X2 has a lot in common with the X1, matching that SUV’s performance and efficiency. However, it has the coupe-style looks that many buyers prefer, and in this iteration, that sloping roofline doesn’t affect practicality all that much, since the X2 virtually matches the X1’s cargo-carrying capabilities.
Summary: BMW’s Cheapest Models Are Worthy Of The Badge
While they may lack street cred alongside an M340i or M2, BMW’s cheapest cars are solid. None of them have an obviously entry-level appearance, all are well-equipped, and they still have relatively sporty driving characteristics, relative to their direct segment rivals.
That said, we would only consider these models with one or two options. Once you add too many extras, you’re better off moving up to a 3 Series or X3, which are nicer vehicles overall.
FAQs
What is the cheapest new BMW I can buy?
This is the 2026 BMW 228 Gran Coupe, which starts at $39,600.
Are BMWs under $40k still considered luxury cars?
Yes, a BMW under $40k is still considered a luxury car, even if it doesn’t have the amenities and refinement of a larger BMW. Many used BMWs can be purchased for below $40k that are truly luxurious, including the 5 Series and legendary X5.
Is it better to buy a new or certified pre-owned (CPO) BMW?
There are pros and cons to both. A new BMW will be more reliable and have the benefit of a full warranty, but it’ll be pricier. A certified pre-owned model can save you thousands initially, but may require repairs sooner. A used example also may not have the latest available technologies.