So, you’ve made the big decision. You’re now going to invest in the very best of engineering, performance, and luxury. In other words, you’ve decided to buy your first luxury car. And now, the excitement within you is shooting through the roof. However, that excitement also has a wee bit of confusion in it.
After all, just deciding that you’re going to buy a luxury car isn’t enough. Now, the prospect of finding the perfect first luxury car is facing you (and we know it can be a little daunting). The big question is: Should you buy an entry-level luxury car or go ahead and purchase a mid-tier luxury vehicle?
In other words, should you buy an Audi A4 to begin with or drive home the classy Audi A6? Should you settle for a Mercedes-Benz A-Class Limousine or buy the E-Class? Of course, both categories come loaded with high-end tech and prestige.
However, you must understand the differences, determine your preferences, and opt for the option that suits you best for your first luxury car. In this blog, we’ll help you do just that.
What Defines an Entry-level Luxury Car?
By definition, entry-level luxury cars are the most affordable offerings by premium brands. They’re aimed at giving first-time luxury car buyers a feel of luxury cars (without the massive price tag).
In a nutshell, these cars offer the prestige, performance, and premium features that luxury brands are known for at a more accessible price. In India, there are very few options in 45L-50L (ex-showroom basis) like Mercedes-Benz A-Class and BMW 2 Series; the rest of the cars in the entry segment are priced between 50L and 63L ex-showroom basis. Some of the people’s favourites in the entry-level luxury car segment across iconic luxury brands include:
- Audi A4
- Audi Q3
- Mercedes-Benz A-Class
- Mercedes-Benz C-Class
- Mercedes-Benz GLA
- BMW 2 Series
- BMW 3 Series
- BMW X1
Key traits of entry-level luxury cars:
1. The price range for entry-level luxury cars in India typically ranges between ₹45 lakhs and ₹63 lakhs (ex-showroom basis).
2. They come in various powertrain options like 1.3 L to 2.0 L petrol or diesel.
3. Most entry-level luxury cars in India are well-suited to urban roads and have compact dimensions.
4. Filled with premium features when it comes to upholstery, infotainment, and cabin experience.
5. Come with 5-star safety ratings
6. Lastly, the buyer gets the brand appeal and the prestigious badge at the starting price.
In a nutshell, these are luxury cars you can buy without having to dive headfirst into the expensive luxury segment and pay beyond the ₹63 lakh mark. The on-road prices of these cars may vary between 50L to 70L, depending on the city you are in and retail offers from a brand.
What is a Mid-tier Luxury Car?
Naturally, mid-tier luxury cars are a step up from the entry-level models. They’re an upgrade in terms of everything from design and performance to prestige. These models showcase the true engineering excellence that the luxury brand is known for.
Some of the common mid-tier luxury cars in India include:
Key Traits of Mid-tier Luxury Cars in India:
1. Mid-tier luxury cars in India are priced somewhere between ₹66 lakhs and ₹85 lakhs (ex-showroom basis). With most of these models priced above 74L ex-showroom basis
2. They offer enhanced rare seat comfort and come in larger dimensions, e.g long wheel base BMW 5 Series and Mercedes-Benz E-Class.
3. They also offer stronger performance and power output with turbocharged engines.
4. Some models might feature tech upgrades like adaptive suspension, 360-degree view cameras, and advanced audio systems.
These luxury cars are for those who are seeking the ‘real’ luxury experience and are willing to go beyond that ₹70 lakhs price tag (ex-showroom. The on-road prices of these cars may vary between 70L to 95L, depending on the city of registration and retail offers by brands.
Entry-Level vs Mid-tier Luxury Cars: A Comparison
When a first-time buyer is out in the market for a luxury car, they must consider several factors. So, let’s compare both options against these factors:
| Factors | Entry-Level Luxury Cars | Mid-Tier Luxury Cars |
| Value for Money | Lower price, insurance, and service costs; great for first-time luxury car buyers | Higher upfront cost but offers better features, build, and engine—greater long-term value |
| Performance & Driving Feel | Decent power; comfortable for city drives and occasional highways | Higher power, better transmission, and suspension; more engaging and dynamic drive |
| Interior Features | Good, basic features (sunroof, digital clusters), but lower material quality | Premium features like ambient lighting, ventilated seats, and large infotainment screens |
| Tech Features | Standard tech; lacks advanced ADAS and high-end sound systems | Comes with premium tech—matrix LED lights, 360° camera, Bowers & Wilkins/Burmester audio |
| Road Presence | Subtle design and smaller size; good for discreet luxury entry | Bolder design, larger size, and stronger brand impression on the road |
| Maintenance & Ownership Cost | Lower annual maintenance and part replacement costs | Higher servicing and parts costs (e.g., tyres, filters, etc.) |
| Depreciation & Resale Value | Lower depreciation % but lower resale demand due to mass availability | Higher depreciation but better resale due to brand desirability and higher segment appeal |
Here is the explained version of the above table:
Value for Money
- Entry-level Luxury Cars: Lower starting price and insurance, and lower service packages. This makes them a decent choice to test the waters in the luxury segment for first-time buyers.
- Mid-tier Luxury Cars: Although buyers pay more upfront to buy a mid-tier luxury car, this also means more high-quality materials, a better set of features, and a more powerful engine.
If the budget is right, entry-level cars seem to be the better choice. However, a mid-tier luxury car can provide better value in the long run (if the buyer is willing to shell out that extra ₹15-25 lakh at the beginning).
Performance and Driving Feel
- Entry-level Luxury Cars: These luxury cars offer decent power output and are suited for city use. The occasional highway drive will also be luxe and comfy in these cars.
- Mid-tier Luxury Cars: With seamless transmission and adaptive suspension, mid-tier luxury cars go from 0 to 100 km/h in a jiffy, offering a more engaging drive.
While entry-level luxury cars are perfect for drives in the city, those seeking to take their luxury vehicle on longer drives should opt for mid-tier luxury cars.
Interior Features
- Entry-level Luxury Cars: Although entry-level luxury cars also have features like sunroof, digital clusters, and wireless connectivity, these cars lack more advanced features like the chauffeur package provided by the brand in more expensive models.
- Mid-tier Luxury Cars: Features such as ambient lighting, ventilated seats, and larger utility screens are often included in mid-tier luxury cars.
If the preference is for a chauffeur-driven experience or long family rides, buying a mid-tier luxury car might be the better option.
Tech Features
- Entry-level Luxury Cars: Good set of features, but buyers might miss out on more advanced features such as an advanced driver assistance system and 360-degree cameras.
- Mid-tier Luxury Cars: Most models among mid-tier luxury cars come fully loaded with features like matrix LED headlamps and Bowers & Wilkins or Burmester sound systems.
If features are a priority and you’re willing to pay the extra price, Mid-tier Luxury cars have to be the better choice.
Road Presence
- Entry-level Luxury Cars: The design in entry-level luxury cars is rather subtle, and so is the size of these cars.
- Mid-tier Luxury Cars: With an accentuating design and stronger image presence, mid-tier luxury cars offer more in terms of their presence on the road.
While just starting in the luxury segment, the road presence of an entry-level luxury car can work as a subtle initiation.
Maintenance and Ownership Cost
- Entry-level Luxury Cars: Naturally, the annual maintenance cost of an entry-level luxury car will be slightly lower than that of the higher trims.
- Mid-tier Luxury Cars: Be it the periodic servicing or its parts like tyres, the cost in the case of mid-tier luxury cars is a little higher.
Going strictly by the post-purchase maintenance costs, entry-level luxury cars will go easier on the pocket of first-time buyers.
Depreciation and Resale Value
- Entry-level Luxury Cars: The depreciation is lower in percentage when it comes to entry-level luxury cars, but their value in the resale market is also lower due to mass production.
- Mid-tier Luxury Cars: The depreciation in this case is slightly steeper, but most mid-tier luxury cars get good value in the resale market due to the higher demand.
In the long run, mid-tier luxury cars will offer better resale value as compared to entry-level luxury vehicles. So, if you’re planning to buy a luxury car now and sell it three years down the line to upgrade to an even better model, you may consider buying a mid-tier luxury car.
The Final Verdict: When to choose What?
Buy an entry-level luxury car if:
- You’ll be driving the car mostly in the city and urban areas.
- You value the luxury car ‘badge’ and aren’t particularly interested in the ‘big car’ image that mid-tier luxury cars come with.
- Your preference is to get a more affordable first taste of luxury.
Buy a Mid-tier Luxury Car if:
- You want the complete luxury experience right from your first luxury car and aren’t shy of spending that extra dime.
- You want to travel long distances and prefer cars with enhanced rear seat comfort.
- You don’t just want the luxury car ‘badge’ and want your car to be a statement of performance, prestige, and panache.
Step into the world of Luxury Automotives
Kudos to you for deciding to step into the world of luxury cars. Remember, buying a luxury car transcends what it usually means to buy a regular road car. That’s because you aren’t just buying it for mobility. You’re putting in the bucks to get the very best of engineering, performance, and luxury.
So, your first luxury car can be an entry-level luxury car or even a mid-tier machine. All of it depends mostly on your preferences.
Do you want to test the water with a safe investment and drive home an entry-level luxury car? Or do you want to throw caution to the wind and buy a mid-tier luxury car that offers the complete luxury experience? The call is entirely yours!
We hope this guide will help you compare the two options and make a more informed choice!