Little Luxuries

In the auto industry, “luxury” has traditionally gone hand in hand with “large.” From the elongated elegance of classic Mercedes and Jaguar sedans to the gargantuan gas-guzzling Cadillacs and Lincolns of the 1970s, better has often meant bigger.

But with today’s anemic economy, heightened environmental awareness and fluctuating gas prices, many drivers are seeking smaller, more reasonably priced and fuel-efficient cars — while still craving creature comforts and fancy features. Upscale auto manufacturers are addressing this growing demand for affordable indulgence (and fishing for younger, more cash-conscious brand converts) with swanky little models that can satiate a lust for luxury without breaking hearts at the pump.

Here are a few to consider (prices are base MSRPs):

Acura’s TSX ($29,310) is compact, chic and easy to own, thanks to above-average reliability and up to 30 mpg highway. It’s also extremely fun to drive. Exceptional build quality, a top-notch interior that belies its sub-$30K starting price and the recently introduced option of a V-6 engine make the TSX perhaps the ultimate in upscale affordability. Its mid-cycle refresh, unveiled at the L.A. Auto Show last month, includes a 60 GB hard-drive-based navigation system with a full VGA color screen. Looking to replace your aging SUV? Consider the recently introduced TSX Sportwagon.

The Audi A3 ($27,270) is a perky premium compact with hints of European sophistication. In its TDI diesel form, which costs around $3K more than equivalent gasoline models, it delivers an outstanding 42 mpg highway. With only minor cosmetic updates for the 2011 model year, the A3 continues to offer Audi’s legendary Quattro all-wheel drive on gasoline models and should once again earn a “Top Safety Pick” rating from the Insurance Institute for Highway Safety. If you’re patient, Audi’s supermini A1, which is already available in Europe, will be coming to America — in about seven years.

BMW’s 1 Series ($29,450) may be the sportiest car on this list. It’s available as a coupe or convertible and marries the same inline six-cylinder engine found in the 3 Series to nimble handling and excellent responsiveness. For 2011, the range-topping 135i gets a new single-turbocharger engine that matches the 300 horsepower of the outgoing twin-turbo, but with improved fuel economy (23 mpg combined from the stick shift). It’s also now offered with BMW’s dual-clutch automated manual transmission and the fourth-generation iDrive system. If you can live with a two-door, the 1 Series offers lively entry-level luxury.

If “green” is your scene but you simply can’t surrender style and comfort, the Lexus HS 250h ($35,100) is a dedicated hybrid (read: not just a gasoline-electric version of another car). It has bioplastic cabin components that nonetheless ooze a sense of refinement and sophistication. The gorgeous interior is tech-heavy, with an optional voice command system and a mouse-like Remote Touch controller to navigate the touch screen. It’s relatively quick for a hybrid: zero to 60 mph in 8.1 seconds. But it still delivers a soothing 35 mpg city/34 mpg highway. Though a little pricier than most in this roundup, you’ll save at the pump, help save the planet — and have a Lexus in your driveway. The smaller, cheaper CT 200h premium five-door hatchback should start under $30K. Though originally announced as a Europe-only model, it should be arriving stateside sometime in 2011.

The Volkswagen GTI ($23,690) has proven pedigree in its corner, having been around (initially as the high-performance trim level of the Golf and Rabbit) since the mid-1970s. This is the car that started the “hot hatch” phenomenon so prevalent in Europe and it’s a perennial favorite among drivers seeking well-built thrills for minimum dollar bills. Larger wheels and tires and lowered suspension set the tone, while a turbocharged four-cylinder delivers 200 horsepower. Inside, paddle shifters, heated front sports seats and an available touch-screen interface for the navigation and eight-speaker sound system are reminders that this is no economy car. Available as a two- or four-door hatch and starting below $24K, the GTI remains the everyman’s head-turner.

The Volvo S40 ($27,750) is perhaps the best choice for those seeking affordable-yet-classy urban driving. It lives up to the Swedish marque’s reputation for outstanding safety, with an optional blind-spot-warning system. It looks suave from the outside and has a price-defying interior full of upscale materials and feel-good features like its unique “floating” central console, optional leather upholstery and heated front seats. For 2011, previously optional features like Keyless Drive and rear park assist are now standard.

If you’ve noticed the lack of an American brand on the above list, fear not: Cadillac will soon have a new small rear-wheel-drive luxury sedan positioned below the CTS in its lineup to compete with the BMW 3 Series and Mercedes C-class. The company recently announced that it will build a $190-million assembly facility in Lansing, Mich., to produce the new model, though production timing and the name of the vehicle have not yet been announced.

—Paul Rogers, Custom Publishing Writer