2026 BMW 2 Series Gran Coupe

The 228 Gran Coupe is front-wheel-drive, which is atypical for a BMW. Usually, the company's vehicles have rear-wheel drive for a classic driving experience or all-wheel drive for better traction for acceleration and foul weather. But its sharp handling and punchy engine should still please most luxury-sedan shoppers. The 228 Gran Coupe also comes generously equipped with the same features from the all-wheel-drive 228 xDrive. An adaptive suspension, which is typically optional for an entry-level model, is standard. It helps improve ride comfort and handling. Heated front sport seats wrapped in synthetic leather are also standard. There are plenty of tech features too. Overall, you're getting a lot of features for a pretty attractive price.

The only other extra-small luxury sedans to consider are the Audi A3 and Mercedes-Benz CLA. We like the similarly priced A3 a lot; it's fun to drive and comfortable. The Audi was updated for 2025 with a restyled interior and exterior design and standard all-wheel drive. The CLA is all-new for 2026 and will come as an electric version. It will also have Mercedes' newest technology features. You might also look at BMW's X1 and X2 SUVs. They are similar in length and cost only a little more.