Best small luxury cars of 2025
Good things often come in small packages - but when it comes to small cars, if you want proper luxury you typically have to go for something that’s big and expensive. However that isn’t universally true, as our list of the best small luxury cars proves - these compact models pack in some real luxury cred, like a Cartier jewellery box or a downstairs loo painted in Farrow and Ball.
There are many reasons you might want a small but luxurious car. Maybe you’re downsizing from a proper full-size luxury model like a Range Rover, but you don’t want to give up too many of the creature comforts you’ve become accustomed to. Or maybe you’re upgrading from a more basic model, and you want to add luxury without stepping up in size.
But what does luxury really mean when it comes to small cars? Well, it doesn’t just mean something with loads of standard equipment like an MG3. Nor does it just mean a car with a posh badge on the front, like a Mercedes sports car. Proper luxury has different meanings to different people, but for the most part it means a sense of quality and effortlessness.
That means all the cars on this list have great interiors, built to last from materials that feel luxurious and expensive - the Lexus LBX is a great example of this. For the most part, they favour comfort over sportiness, like the Peugeot 208, and they’re typically quieter and more refined than their non-luxury counterparts - just compare the Audi A1 to the mechanically similar VW Polo. To be a proper luxury car, we’d say it needs to have an automatic gearbox - every model here either has one as standard, or gets one in the variant we’d recommend you buy.
Our expert reviews team has driven all the small cars on sale, so we’ve picked out the best and most luxurious below.
The Lexus LBX is a bit like a Toyota Yaris Cross in a frock, but to boil it down to just that would be doing it a disservice. Yes, the two cars are mechanically very similar, but the differences run deeper than they do with many other vehicles that share underpinnings.
For a start, there really isn’t much on the outside to tell that the two cars are related - and there’s even less on the inside. Everything you touch or interact with is pure Lexus, from the door handles to the touchscreen, so you don’t at all feel like you’re getting a half-baked experience.
Interior build quality is as much a highlight in the LBX as it is in bigger, more expensive Lexuses. There are precious few scratchy plastics within reach and the armrests are all clad in leather. Even the switchgear operates differently in a Lexus - things like the soft-close electric windows add that little extra touch of luxury that you don’t get in other small SUVs.
The LBX gets a 130hp hybrid engine, the same as in upper versions of the Yaris Cross. It’s not particularly fast but it’s fantastically smooth and efficient - as long as you’re not trying to cane it down a twisting back road you won’t be disappointed by the level of performance on offer. Plus, drive it carefully and you’ll easily see 60mpg, possibly more than that if you’re careful.
Owning a Lexus is something of a luxurious experience, too. The brand’s dealers come very highly rated for customer service, and you’ll want to keep going back there too - every scheduled service unlocks a further year of warranty cover, up to ten years or 100,000 miles. That’s the longest warranty in the business (along with Toyota) and makes the LBX a really excellent vehicle for long-term ownership.
Peugeot is a bit like the Marks and Spencer of the car world - it’s not a proper posh brand, but it does sell stuff that’s a cut above the norm. The 208 is one such car - though it’s an alternative to hatchbacks such as the Vauxhall Corsa and VW Polo, it’s a little pricier and a whole lot nicer to sit in.
The 208’s interior is fantastic for a small car. All the materials feel really high-quality and the design is distinctive without being too out-there. With the exception of the driving position, that is - the 208 range gets Peugeot’s ‘i-Cockpit’ arrangement, whereby the dials sit high up and you look at them over the top of a shrunken steering wheel, rather than through it.
Elsewhere, you get a 10.0-inch infotainment screen with nice sharp graphics and some really lovely touches - the row of solid metal shortcut keys feel like they’ve come from a luxury stereo rather than a small hatchback.
The outside is no less stylish - it has distinctive LED daytime running lights, an intricate grille and a squat, wheel-at-each-corner stance that gives it plenty of presence on the road.
The basic 100hp petrol engine gets a manual gearbox and as such isn’t quite so luxurious - but the 110 or 145hp hybrid options are both smooth and quiet. Or, you could go for the all-electric E-208 and waft along in serene silence.
There are downsides - the 208 is quite pricey next to other small hatchbacks, and it’s not especially practical either. The boot is a good size but the rear seats are really cramped and even the front seats aren’t the best for very tall drivers.
But if you want a small car that stands out then the Peugeot 208 is a fantastic option.
The A1 Sportback has long been a popular choice for people who want an Audi-badged car on their drive, but don’t fancy one of the brand’s bigger and fancier models. The A1 gets the street cred, the quality feel and the cool styling of the rest of the Audi range, but in a city-friendly package that’s easy to drive and park.
Basic models get a manual gearbox and just 95hp, which requires quite a lot of not-very-luxurious revving. So opt for the 116hp or the 150hp models, with Audi’s excellent automatic gearbox, and you’ll have a car that’s equally at home city slicking as it is on the motorway.
Adding the optional Technology Pack does increase the price, but it also gets you nice touches like wireless phone charging, heated seats and a posh Sonos sound system. They’re all set into an interior which, though it feels a generation behind the latest Audi models, is actually all the better for it.
You get solid materials, rock-solid build quality and a nice design that incorporates lots of physical switchgear - making adjustments on the move is so much easier in the A1 than it is in its all-touchscreen alternatives.
Better yet, you’ll hardly find a bit of nasty, scratch-prone piano black plastic. Add in the optional leather and suede upholstery and the A1 feels like a car you’d be happy to spend a lot of time in.
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4. Mercedes A-Class
Mercedes-Benz A-Class (2018-2023) reviewThe Mercedes A-Class is a deservedly popular small car. Don’t expect the same level of luxurious decadence as, say, the full-fat S-Class, but you might be surprised by how grown-up and posh the A-Class looks and feels inside.
Many of the knobs and switches are the same as you’ll find in Merc’s bigger models and so many aspects - such as the seat controls on the door or the widescreen infotainment system - feel properly luxurious in a small car like this.
There are a huge range of engines and trims to choose from, too. Penny-pinchers will love the diesel, which will return over 50mpg and gives a range approaching 600 miles per tank. What’s more luxurious than fewer visits to a petrol station?
All models get an automatic gearbox and a really classy infotainment setup, with two big screens set under a seamless sheet of glass. It operates really nicely, and you can get posh features like an augmented-reality sat-nav too.
BMW is known for making its cars great to drive, but the 1 Series also has other feathers in its cap - it’s pretty luxurious for a small car, in addition to being the most fun car in this list when the going gets twisty.
Whether you opt for one of the more basic engine options or a more powerful model with four-wheel drive, the 1 Series is a pleasure to drive round town, comfortable and refined on the motorway and great fun on a winding back road.
It’s also a great place to sit. The 1 Series follows other BMWs in having an interior that looks simple, but is beautifully screwed-together with plush materials. The touchscreen infotainment system does control nearly all the car’s functions, including the climate control, but it’s pretty straightforward to use.
If there’s a downside, it’s that the 1 Series is a bit firmer over bumps than the equivalent Mercedes A-Class - so it’s not quite as comfortable, especially in town. It smooths out nicely on the motorway, though.
Okay, so anything badged as a Range Rover is a bit big to be considered a ‘small car’. But the Evoque is the baby of the Range Rover line-up and yet it punches far above its weight in terms of luxury.
The interior borrows its materials and components from larger, more expensive Range Rovers, so it feels fantastic, and the suspension irons out every lump and bump you could ask for. And though its sleek design is perfectly suited to the city, the four-wheel drive Evoque is absolutely fantastic off-road, dealing effortlessly with terrain that’d stymie many a larger 4x4.
There are petrol, diesel or plug-in hybrid engines, and trims ranging from the plush to the properly luxurious. The Range Rover Evoque is the sort of small luxury car you’ll really enjoy having on the drive.
The Audi A3 has a lot going for it. Like the smaller A1, it uses a previous generation of Audi’s interior which is actually nicer than the latest cars - it feels solid and higher-quality, while making better use of physical buttons to improve usability.
It’s also nice to drive and comfortable, and it strikes a great balance between size and interior space. All of the engines are good, but the headline model is the plug-in hybrid, which has over 80 miles of electric range.
This makes it cheap as chips when it comes to company car Benefit-in-Kind tax, so you could have this premium hatchback on your drive for the same price as something much smaller and less plush.
8. Volvo EX30
Volvo EX30 reviewVolvo makes some of the coolest SUVs around. The EX30 may be its smallest model, but it retains that Scandi-cool aesthetic - and it just so happens to be a really great electric car too. Up to 295 miles per charge from the Long Range model is competitive with other small EVs, and it’s both quick and comfortable on the move.
The EX30’s interior is a feast of minimalism - everything’s routed through one central screen, which can be a bit frustrating to use but certainly gives an upmarket vibe. And Volvo’s used really interesting materials in place of more traditional ones - the optional wool seats in particular are fantastic.
The EX30 is really good value, too - it’s one of Volvo’s newer EVs but it’s by far the cheapest, and it undercuts key alternatives too.
Factors to consider before buying a small luxury car
Is it worth it?
You do tend to pay a premium for a small luxury car versus other models. For the same money, you could potentially buy something larger and less luxurious - or, save your cash and head down the market a bit. However, there’s something really nice to be said for having a small car that feels as luxurious as a big one - so if you want that, then go right ahead. Any of the cars on this list will give you that experience.
How small do you want to go?
Truly small luxury cars are an incredibly rare breed and consist of things like the Aston Martin Cygnet and poshed-up versions of the classic Mini. Not exactly practical. The cars on this list are a bit bigger, but much more practical for everyday use.
Engine choice
For a real luxury experience it can be hard to beat an electric car. Their lack of an engine gives you the most coveted luxury feature of all - silence. But small luxury EVs aren’t particularly commonplace, so it’s also worth considering hybrid and traditional petrol and diesel models too. If you’re doing long journeys, a more conventional engine option is your best bet.
