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TheStreet Open House

5 Best Luxury Cars Under $40,000

4. 2014 Lexus IS
MSRP: $35,950

There's a lot of wiggle room in this model for folks who want to keep it below or around $40,000.

That starting MSRP is for the base IS 250, which comes with with rear-wheel drive, heated mirrors, dual-zone climate control, power moonroof and base tech perks. For $38,000, they'll throw in all-wheel drive and heated front seats. For $39,000, the rear-wheel-drive sports package kicks in a digital instrument panel, bolstered and heated front seats, a leather shifting knob and aluminum pedals.

For $39,500, the IS 350 takes the 250's 204 horsepower and 30 miles per gallon on the highway and boosts it to 300 horsepower and a slightly pokier 28 MPG. What about the Enform entertainment, navigation and emergency assistance system? Well, let's just say Toyota is a little more tight-fisted with perks than its luxury competitors.

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