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Beyond the Badges: The Most Underrated Luxury Cars and SUVs of 2025 You Need to Drive
As someone who’s spent over a decade deeply immersed in the automotive world, test-driving countless vehicles, analyzing market trends, and dissecting engineering marvels, I’ve seen firsthand how brand perception can often overshadow true value and innovation. In 2025, the luxury segment is more diverse and competitive than ever, yet many truly exceptional vehicles fly under the radar, offering a premium experience without the expected premium price tag or the fanfare of traditional titans. These are the unsung heroes, the intelligent choices for discerning buyers who prioritize substance, unique design, and genuine driving pleasure over sheer badge prestige.
Forget the hype for a moment. What defines luxury isn’t just a crest on the grille; it’s the quality of materials, the serenity of the ride, the exhilaration of the powertrain, the seamless integration of technology, and the attention to detail that elevates the everyday drive into something special. This year, a fascinating array of sedans and SUVs stands ready to redefine your understanding of what an “underrated luxury car” truly means. We’re talking about vehicles that deliver a knock-out punch in key areas, often outperforming or out-featuring their pricier, more celebrated rivals. Let’s dive into the overlooked gems of 2025, from compact sport sedans to opulent grand tourers, that offer compelling arguments for your hard-earned dollar.
The 2025 Cadillac CT4: A Performance Bargain Hiding in Plain Sight
Starting MSRP: $34,995

For years, the Cadillac CT4 has quietly carved out a niche as a genuine driver’s car in the compact luxury sedan segment, often overshadowed by its flashier CT4-V and Blackwing siblings. Yet, to overlook the standard CT4, especially in its Premium Luxury trim, would be a mistake. This is where Cadillac delivers a truly compelling package that deftly blends performance, comfort, and sophisticated style.
While the hardcore enthusiasts might gravitate towards the 472-horsepower Blackwing or the 325-horsepower CT4-V, the Premium Luxury trim offers a remarkably similar thrill, powered by a slightly detuned version of the same potent 2.7-liter turbocharged four-cylinder engine. Pumping out a robust 310 horsepower and an impressive 350 pound-feet of torque, this engine transforms the CT4 into a surprisingly swift machine. With a 0-60 mph sprint time of a mere 4.8 seconds, it can easily keep pace with, or even outrun, many of its more expensive European rivals. This kind of straight-line performance from a sub-$40,000 luxury sedan is simply outstanding value.

Of course, it’s not just about raw speed. The CT4 boasts a chassis that’s genuinely engaging. Its rear-wheel-drive architecture (with optional AWD) provides a balanced and athletic feel, allowing for crisp turn-in and confident handling. The steering is direct and communicative, making the CT4 a joy to pilot on a twisty back road. While some critics have historically pointed to an interior that might not quite match the ultimate plushness of a BMW 2-Series Gran Coupe or a Mercedes-Benz CLA-Class, the CT4’s cabin is still well-appointed, offering comfortable seating, intuitive controls, and a modern aesthetic that reflects Cadillac’s evolving design language.
Its standard base engine, a 2.0-liter turbo, still offers a healthy 237 horsepower and an EPA-rated 26 MPG combined, proving that efficiency doesn’t have to come at the cost of luxury. But for those who crave performance without breaking the bank, the Premium Luxury 2.7L variant is the true underrated star. It’s a testament to Cadillac’s commitment to driving dynamics, providing an exhilarating experience that’s a true bargain in 2025’s competitive landscape. For the discerning buyer seeking a luxury compact sedan that puts driving pleasure first, the CT4 is a contender that demands a closer look.
The 2025 Mazda CX-90: Premium Prowess from an Unexpected Place
Starting MSRP: $38,800

Mazda has been on a quiet, yet determined, march upmarket for the past several years, and the 2025 CX-90 stands as a shining beacon of their success. This mid-sized, three-row SUV is arguably the most refined and underrated option for families and individuals who demand space, practicality, and genuine driving enjoyment, all wrapped in a surprisingly sophisticated package. It’s a vehicle that embodies the phrase “premium without the badge snobbery.”
The CX-90’s appeal starts with its architecture: a new rear-wheel-drive biased platform that underpins a truly engaging driving experience. Under the hood, you’ll find Mazda’s innovative e-Skyactiv G 3.3-liter inline-six turbocharged engine. In its base versions, this powerplant delivers a robust 280 horsepower and an impressive 332 pound-feet of torque, offering smooth, confident acceleration. Opt for the more powerful variant, and you’ll get 340 horsepower, putting it squarely in contention with more established luxury brands. This inline-six configuration, often reserved for high-end European models, contributes significantly to the CX-90’s refined power delivery and balanced feel.

What truly sets the CX-90 apart, however, is its dynamic prowess. As many expert reviews, including those from TopSpeed, have highlighted, the CX-90 “seems to shrink in size the faster it goes.” This is a testament to its accurate and fluid steering, buttoned-down responses, and sophisticated body control. It handles winding roads with an agility that belies its three-row stature, making it one of the most engaging SUVs in its class.
Inside, the CX-90 is a masterclass in understated elegance. The cabin feels genuinely upscale, with available Nappa leather, real wood trim, and meticulous craftsmanship. Leatherette-trimmed seats come standard, offering comfort and durability, while the brand’s comprehensive i-Activsense safety suite ensures peace of mind. Optional extras like a panoramic sunroof and a hands-free power tailgate further elevate the luxury experience. With seating for up to eight people, the CX-90 doesn’t sacrifice practicality for its premium aspirations.
A common point of confusion is its close sibling, the CX-70, which sheds the third row for a slightly more athletic stance and a few unique styling cues, often at a higher price. But for the family-focused luxury buyer, the CX-90 represents a phenomenal value proposition in the “mid-size luxury SUV” segment, blending Mazda’s signature driving dynamics with newfound levels of luxury and utility. It’s a genuine sleeper hit for 2025.
The 2025 Toyota Crown: A Hybrid Luxury Icon Reimagined
Starting MSRP: $41,440

When the Toyota Crown made its return to the North American market for the 2023 model year, it raised eyebrows with its distinctive “jacked-up sedan” silhouette. In 2025, it continues to defy convention and remains one of the most profoundly underrated luxury vehicles available. Why? Because underneath that polarizing design lies a truly innovative, Lexus-level experience cloaked in the accessibility of a Toyota badge.
For years, Toyota has quietly imbued its mainstream models with touches of luxury, but the Crown takes it to an entirely new level. Many hands-on reviews consistently praise its interior for its Lexus-like design, premium materials, and overall refinement. The cabin is a serene sanctuary, thoughtfully laid out with high-quality surfaces and comfortable seating, providing an experience that easily rivals vehicles bearing more “prestigious” badges.
The Crown’s standard powertrain is a sophisticated hybrid system producing 236 horsepower, capable of hitting 60 mph in a respectable seven seconds. This setup prioritizes fuel efficiency without feeling sluggish, making it an excellent choice for daily commuting and longer journeys. However, the true showstopper, and a major reason for its underrated status, is the top-of-the-range Platinum trim, featuring the Hybrid Max powertrain.

This advanced hybrid system unleashes a formidable 340 horsepower and 400 pound-feet of torque, propelling the Crown from 0-60 mph in a blistering five seconds – a full two seconds faster than the base model. What’s more, this Hybrid Max variant swaps out the CVT for a standard automatic gearbox, providing a more traditional and engaging driving feel. All Crown models come standard with all-wheel drive, ensuring confident handling in various conditions.
The Toyota Crown excels at blending luxury, efficiency, and surprising performance, all while flying under the radar of many traditional luxury buyers who might automatically gravitate towards European marques. Its unique design might not be for everyone, but its undeniable comfort, advanced hybrid powertrains, and all-weather capability make it a standout “hybrid luxury sedan” for those willing to look beyond brand perceptions. The existence of the Crown Signia variant, a more traditional crossover SUV, only adds to the Crown’s versatility, but the original sedan is where its unique appeal truly shines in 2025.
The 2025 Lexus IS: Unwavering Comfort and Unbeatable Reliability
Starting MSRP: $41,830

The Lexus IS has long been a dark horse in the compact executive sedan arena, a model that consistently delivers a comfortable, refined, and utterly reliable luxury experience. Yet, it often finds itself living in the shadow of its German rivals – BMW’s 3 Series, Mercedes-Benz C-Class, and Audi’s A4. Part of this perception stems from the absence of the same aggressive “brand prestige” in the eyes of some, and another from its generally softer driving dynamics compared to the segment’s sharpest handlers. But here’s the expert take: razor-sharp dynamics aren’t the sole metric for luxury car buyers, and for many, the IS offers a more compelling, holistic package.
What the Lexus IS truly excels at is providing an uncompromised level of comfort and serenity. Its ride quality is exceptionally smooth, soaking up road imperfections with a plushness that’s increasingly rare in its segment. The cabin is a masterclass in premium materials, meticulously assembled with Lexus’ renowned attention to detail. Every touchpoint feels solid and luxurious, contributing to an overall sense of calm and well-being. Furthermore, the IS comes generously equipped with features and, as we’ve come to expect from Lexus, boasts an industry-leading safety suite, the Lexus Safety System+ 2.5 (or later, depending on specific 2025 updates).

For 2025, the IS continues to offer a range of powertrain options, from a responsive turbocharged four-cylinder in the IS 300 to a potent V6 in the IS 350. The flagship IS 500 F Sport Performance, with its glorious 5.0-liter naturally-aspirated V8, has been a favorite for its old-school muscle car charm within a luxury package. While reports suggest the IS lineup may streamline for 2026, potentially focusing solely on the 311-horsepower naturally-aspirated V6 in the IS 350, this would still be music to the ears of six-cylinder fans. The IS 350 is capable of hitting 60 mph in the brisk five-second range, providing more than enough power for spirited driving without sacrificing its comfortable demeanor.
The Lexus IS is underrated because it refuses to chase trends or compromise its core values. It’s a reliable luxury sedan that offers exceptional build quality, a serene cabin, and a genuinely comfortable ride, making it an ideal choice for daily commuting and long-distance cruising. While others might boast about track times, the IS confidently champions the art of relaxed, sophisticated travel. For those seeking “Lexus comfort features” and a car that will faithfully serve for years to come, the IS is a standout choice for 2025.
The 2025 Genesis G70: Disrupting the German Dominance with Value
Starting MSRP: $43,450

In a segment long dominated by the trifecta of BMW, Mercedes-Benz, and Audi, Genesis has emerged as a formidable challenger, and the 2025 G70 luxury sport sedan is arguably its most compelling statement. This is a car that genuinely manages to compete with elite German brands not just in terms of performance and luxury, but by offering undeniable value for money – a key reason it remains an “underrated luxury car” in 2025.
Let’s talk price. While a BMW 3 Series or a Mercedes-Benz C-Class will typically start north of $48,000 and $50,000 respectively, the Genesis G70 consistently undercuts them, often by several thousand dollars. Yet, it does so without compromising on the luxury experience. Step inside, and you’re greeted by an upscale cabin featuring premium materials, meticulous craftsmanship, and an array of standard amenities. Heated and ventilated seats are a common option, along with a host of advanced driver-assistance systems that come standard.
But the G70 isn’t just about luxury; it’s a genuine sport sedan. Its agile chassis delivers an engaging driving experience, with sharp steering and a balanced feel that inspires confidence on winding roads. The choice of potent turbocharged engines further solidifies its performance credentials. The base 2.0-liter turbocharged four-cylinder offers lively performance, but the real star is the optional 3.3-liter twin-turbo V6. Pushing out an impressive 365 horsepower, this engine propels the G70 from 0-60 mph in a mere 4.5 seconds – a figure that puts it squarely in the territory of much more expensive performance sedans.

Why, then, is it underrated? Some might point to its relative lack of brand heritage compared to the century-old marques. Others might have lingering concerns about its dealer network or long-term reliability (concerns that are largely unfounded as Genesis continues to mature). The truth is, there are very few genuine downsides to a new G70 in 2025. Its primary drawback, as some reviews have noted, is its fuel economy: the four-cylinder base model manages only 24 MPG combined, while rivals like the BMW 330i can achieve 30 MPG. However, for those prioritizing performance and an exceptional luxury experience at a significantly lower entry price, this is a trade-off many are willing to make.
The Genesis G70 represents one of the smartest buys in the “performance luxury sedan” segment, offering a genuine “BMW 3 Series alternative” that challenges established norms and delivers a truly premium, agile, and powerful ride.
The 2025 Lincoln Nautilus: American Luxury Redefined with a Digital Masterpiece
Starting MSRP: $53,995

Lincoln has been on a steadfast mission to redefine American luxury, and the 2025 Nautilus stands as a bold testament to that vision. Choosing the Nautilus guarantees an interior experience that is nothing short of opulent, combining high-end materials, advanced active safety features, and a ride so comfortable it feels like floating on air. But what truly sets it apart, making it an incredibly “underrated luxury SUV” for 2025, is its groundbreaking digital interface.
The moment you step inside the new Nautilus, your eyes are immediately drawn to the absolutely massive 48-inch screen that gracefully spans the entire dashboard. This isn’t just a gimmick; it’s a fully integrated, customizable digital landscape that redefines the driver and passenger experience. From navigation and entertainment to vehicle information, it presents data in a stunningly clear and intuitive manner, a feature that simply outclasses most rivals regardless of price. This “large screen infotainment luxury” is a game-changer.
Beyond the digital marvel, the Nautilus exudes an understated elegance. Its exterior is refined and imposing, with sleek lines and a confident stance. The cabin is a sanctuary of quiet luxury, thanks to excellent sound deadening and sumptuous materials throughout. The seating is exceptionally comfortable, making long journeys a pleasure rather than a chore. As TopSpeed’s Craig Cole noted, the available hybrid setup is “incredibly smooth and quiet; the engine seems completely friction-free and sounds like it’s operating far away, several cars ahead of the Nautilus’ passenger compartment.” This level of NVH (Noise, Vibration, Harshness) control is usually found in much more expensive vehicles.

While its driving dynamics may not be as razor-sharp as a BMW X7, the Nautilus isn’t trying to be a track star. Instead, it prioritizes a plush ride and a serene environment, making it an ideal “comfortable luxury SUV” for daily commutes and family road trips. And when you consider the price, the value proposition becomes even clearer. Sharper rivals like the BMW X7 start at over $80,000, making the Nautilus a significantly more accessible entry into large, luxurious SUV ownership.
For 2025, the Nautilus streamlines its powertrain offerings, featuring a potent 250-horsepower, 280-pound-feet of torque turbocharged four-cylinder engine paired with an eight-speed automatic and standard all-wheel drive. For those seeking more punch and efficiency, a hybrid version boosts output to an impressive 310 horsepower. The Lincoln Nautilus delivers an experience that is nothing short of luxurious, providing unparalleled value and a unique digital interface that places it firmly among the most underrated luxury SUVs of 2025.
The 2025 Genesis GV80: Lavishness without the Lavish Price Tag
Starting MSRP: $57,700

The Genesis GV80 has consistently landed on “best luxury SUV” lists since its debut, yet it still finds itself in the shadow of more established European contenders. This is precisely why it remains one of the most compellingly “underrated luxury SUVs” of 2025. Despite its numerous merits, original design, and opulent features, the perception that a lower starting price somehow equates to less luxury persists. For savvy buyers, this perception gap translates to an incredible opportunity.
Starting at well under $60,000, the 2025 GV80 offers a plush cabin, an exquisite blend of quality materials, and a distinctive design that truly stands out from the crowd. This isn’t a copycat; it’s a bold statement of Korean luxury. The interior is lavishly appointed, featuring standard heated seats, wireless phone charging, sophisticated ambient lighting, and a powered tailgate. The crowning glory of the interior is its enormous 27-inch screen that seamlessly integrates a digital instrument cluster and infotainment display, creating a futuristic and highly functional command center. This “premium SUV value” is hard to beat.

Under the hood, the GV80 offers a fantastic range of engines. The standard 300-horsepower turbocharged four-cylinder provides ample power for most situations, delivering smooth acceleration and respectable efficiency. For those craving more exhilarating performance, the optional twin-turbo 3.5-liter V6 unleashes a formidable 375 horsepower. This robust V6 can hustle the GV80, which shares its platform with the G80 sedan, to 60 mph in under six seconds, putting its performance on par with or even ahead of some more expensive German rivals like the BMW X7.
The Genesis GV80 challenges the notion that true luxury must come with an exorbitant price and a century of heritage. It’s a beautifully designed, exceptionally well-equipped, and dynamically capable “mid-size luxury SUV with large screen” that delivers genuine opulence. For buyers who prioritize substance, cutting-edge technology, and compelling value over mere badge prestige, the GV80 is not just underrated; it’s arguably one of the smartest luxury SUV purchases you can make in 2025.
The 2025 Volvo S90: Scandinavian Serenity – A Modern Classic (When You Can Find It)
Starting MSRP: $59,495

The 2025 Volvo S90 finds itself in a peculiar position as an “underrated luxury sedan” in the US market: it’s technically no longer sold new here. However, its continued excellence, particularly as a late-model used or imported option, makes it a vehicle worth discussing for its profound underrated status. When it was on sale, it offered a unique blend of Scandinavian design, uncompromising safety, and surprising luxury, often at a more accessible price point than its European competitors. For those seeking a distinctive and high-quality premium sedan outside the usual suspects, the S90 represents a hidden gem.
While critics occasionally pointed to its ride and powertrain refinement not quite matching the absolute best in class, or perhaps its trunk space and specific luxury features falling short of some rivals, these critiques often missed the broader picture. The S90 championed a different kind of luxury – one rooted in minimalist design, thoughtful ergonomics, and an unwavering commitment to occupant well-being. Its typical Scandinavian design ambiance, characterized by clean lines, natural materials, and an airy cabin, truly made the brand popular and unique.

Features included heated seats, a panoramic sunroof, and standard all-wheel drive across the lineup, underscoring Volvo’s commitment to comfort and capability in all conditions. The base four-cylinder engine, while not “exciting,” delivered a respectable 295 horsepower and 310 pound-feet of torque, alongside an EPA-rated 26 MPG combined. But the real star, and a key reason for its underrated performance luxury, was the potent plug-in hybrid (PHEV) variant found in the top-end T8 models.
This T8 powertrain combined a turbocharged and supercharged four-cylinder engine with two electric motors to produce a mighty 455 horsepower and 523 pound-feet of torque. This meant blistering performance, with a 0-60 mph time of around four seconds, coupled with an impressive EPA-rated 66-MPGe combined figure. It was a true masterclass in blending exhilarating power with exceptional efficiency.
The Volvo S90 was, and for those who seek it out, still is, a competent, safe, and truly luxurious sedan. Its “Scandinavian design luxury” offers a refreshing alternative to the often-stark aesthetic of some German cars. Even if you’re looking for a 2025 model on the pre-owned market, or admire its past glory, the S90 embodies the essence of an underrated luxury car – a vehicle that offered immense value and a distinctive experience that continues to resonate with discerning enthusiasts.
The 2025 BMW 5 Series (530i): An Accessible Ticket to German Luxury
Starting MSRP: $59,900

It might seem counterintuitive to label a BMW, especially a 5 Series, as “underrated.” After all, it comes from one of the most prestigious automotive brands globally. However, for 2025, the base 530i version of the BMW 5 Series perfectly fits the definition of an “underrated luxury sedan.” In a segment where prices can quickly skyrocket, the 530i offers an entry point to the iconic 5 Series experience at a surprisingly reasonable price, starting just under $60,000.
The mid-size luxury sedan segment is fiercely competitive, and while some interior appointments or specific features in the 530i might not feel as extravagant as those in pricier trims or certain value-focused brands like Genesis, the overall package is undeniably BMW. The interior is spacious, thoughtfully designed, and exudes the perceived quality that is a cornerstone of the brand.
The base engine in the 530i, a turbocharged four-cylinder, offers 255 horsepower. While adequate rather than overwhelming, it’s more than sufficient for daily commuting, highway cruising, and even some spirited driving. The engine is smooth and responsive, delivering power with typical BMW refinement. Crucially, it achieves an impressive EPA-rated 31 MPG combined, making it a surprisingly efficient luxury sedan. And with a 0-60 mph time in the five-second range, it’s far from slow.

The core strengths of the 5 Series – refinement and ride comfort – are very much present in the 530i. It handles long distances with ease, absorbing road imperfections and maintaining a serene cabin environment. For many buyers, the 530i is the perfect all-around option. It allows you to buy a ticket to the coveted “luxury German sedan club” without the price climbing to exorbitant levels. The powertrain is likely more than enough for the vast majority of drivers who appreciate a balanced blend of performance, comfort, and efficiency.
If you do crave more power, BMW always has a solution: the 540i xDrive, with its 375-horsepower inline-six engine, is available for a jump to around $67,000. But for an “entry-level luxury sedan 2025” that embodies the essence of the 5 Series without an inflated price tag, the 530i is a genuinely smart and underrated choice, offering a premium German driving experience that might just surprise you with its value.
The 2025 Lexus LC: A Timeless Grand Tourer of Art and Emotion
Starting MSRP: $101,700

At first glance, a car with a six-figure starting price might seem out of place on a list of “underrated luxury cars.” However, the 2025 Lexus LC is precisely that – an exquisite, often overlooked masterpiece that delivers an emotional, visceral experience unlike almost anything else on the market. This flagship coupe and convertible, in production since 2018, is the most expensive car in Lexus’s lineup, yet it remains profoundly underrated compared to its European grand touring rivals.
The LC is an automotive work of art. Its stunning, elegant design, whether in coupe or convertible form, turns heads wherever it goes. But beneath the gorgeous exterior lies its true heart: the naturally aspirated 5.0-liter UR V8 engine. In an era dominated by turbochargers and electrification, this high-revving, sonorous V8 is a rarity, a pure symphony of internal combustion. As TopSpeed enthusiastically noted, “The LC500 roars to life, with just the right amount of revs to make you feel like you’re about to embark on a special journey. It’s not a new engine, but damn, is it a great one.” This engine, once also featured in the now-discontinued RC F and the IS 500 F Sport Performance, is a precious gem.

Inside, the Lexus LC’s cabin is as plush and meticulously crafted as you’d expect for its price. Features abound, including Lexus Safety System+ 2.5, a comprehensive suite of advanced safety tech, an elegant glass roof with sunshade (coupe), eight-way power-adjustable heated and ventilated front seats, and a premium 12-speaker Lexus sound system. Every detail speaks to an unwavering commitment to luxury and craftsmanship.
Why is it underrated then? The LC is often compared to more dynamically focused sports cars from Porsche or Jaguar, but this misses its true purpose. The Lexus LC is first and foremost a grand tourer. Its dynamics are refined and comfortable, designed for effortless long-distance travel, rather than razor-sharp track performance. Its high price, coupled with the absence of a manual transmission and its comfort-biased tuning, can lead some to overlook its profound merits. But for those who cherish a naturally-aspirated V8, a truly stunning design, and a plush, rear-wheel-drive luxury experience, the LC offers an incomparable emotional connection. In 2025, it’s a living legend, a “V8 luxury grand tourer” that prioritizes beauty, sound, and a unique driving experience above all else.
The Future is Bright for Discerning Buyers
In a market saturated with options, it’s easy to get caught up in the allure of the most advertised or highest-priced luxury vehicles. But as we’ve explored, 2025 offers a wealth of “underrated luxury cars” and SUVs that deliver exceptional value, unique character, and genuine premium experiences. From the spirited performance of the Cadillac CT4 and Genesis G70, to the innovative luxury of the Mazda CX-90 and Lincoln Nautilus, the hybrid sophistication of the Toyota Crown, the unwavering comfort of the Lexus IS, the distinctive Scandinavian appeal of the Volvo S90 (where available), the accessible prestige of the BMW 530i, and the emotional artistry of the Lexus LC, there’s a compelling argument for looking beyond the obvious.
These vehicles challenge conventional notions of luxury, proving that true quality and satisfaction often lie just off the beaten path. They represent smart choices for buyers who prioritize substance, innovation, and an authentic connection with their vehicle. Don’t let brand preconceptions limit your options.
Isn’t it time you redefined what luxury means to you? We invite you to explore these exceptional, yet often overlooked, models. Visit your local dealerships, schedule a test drive, and experience firsthand the compelling value and unique charm of the most underrated luxury cars and SUVs of 2025.
