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Consumer demand for affordable luxury has placed more focus on the near-luxury category of passenger cars. This category includes cars from such upscale brands as Lexus, Cadillac, Mercedes-Benz and Lincoln, as well as upper-end models from other manufacturers such as Chrysler, Toyota and Hyundai. Starting manufacturer's suggested retail prices range from around $23,000 for a Chrysler 300 to approximately $33,500 for an Audi TT coupe.
More specifically, MSN Autos defines near-luxury cars as well-appointed sedans and coupes with starting MSRPs averaging $27,500. Near-luxury cars offer trim configurations and option packages that provide luxury features and performance in price ranges that are lower than traditional luxury or high-performance cars.

If you do not find a particular vehicle you would expect to see on a list of near-luxury cars, please check our article on traditional luxury vehicles.

Hot Entries for 2005
Chrysler's top-of-the-line sedan, the 300, was an early 2005 introduction and quickly made a mark in popular culture as well as sales tallies. A wide range of buyers—from retirees in the Midwest to hip-hop artist Snoop Dogg—clamored to get this new rear-wheel-drive model, which many say looks like a Bentley. Indeed, the 300 features blockish front and rear styling, not to mention plentiful rear legroom of 40.2 inches and a sizable trunk with 15.6 cubic feet of space. The top model, the 300C, comes with a powerful 340-horsepower HEMI V8—the first Chrysler HEMI to use cylinder deactivation. The system allows the engine to switch from eight cylinders to four in 0.04 second when the vehicle is being driven at a constant speed, such as on the freeway. This helps improve fuel economy.

For 2005 Cadillac's CTS debuts a new entry model with a 210-horse 2.8-liter V6 capable of 195 lb-ft of torque at 3200 rpm. This engine is a modified version of the 3.6-liter VVT CTS engine that's also offered in 2005. Cadillac officials hope the new entry CTS will attract younger buyers. Cadillac also increases the power of the CTS at the other end of the model line with the debut of the 2005 CTS-V. Powered by a 400-horse 5.7-liter V8, the CTS-V is the fastest production Cadillac ever offered. Zero-to-60-mph time is 4.6 seconds.

The Mercedes-Benz C-Class gets freshened for 2005, with a new interior and updated exterior styling designed to make all C-Class trims sportier looking.

Subaru's Outback sedan begins its third generation with updates and improvements in 2005. Among them: new exterior styling, a wider track, a longer wheelbase and overall length. Standard safety items include active front head restraints to reduce chances of whiplash in a crash and side-curtain airbags.

The Volvo S60 is mildly restyled for 2005. The S60 also is among the first Volvos to get a new generation of seats, and its T5 model has more horsepower—260 for 2005 rather than the previous 250. Last but not least, the S60 offers a special safety feature called a Blind Spot Information Center. A camera system monitors driver blind spots and provides alerts if the driver is headed onto a part of the road already occupied by another vehicle in the driver's blind spot.

Features Are Plentiful
As their name implies, near-luxury cars can come well equipped.

It's not unusual to find dual-zone climate control in the front seats of the Lincoln LS and the Toyota Avalon. There are leather-trimmed seats inside every Hyundai XG350 and Kia Amanti. Acura's TSX and the Lexus IS 300 come standard with bright xenon high-intensity discharge (HID) headlights that a few years ago were found only on expensive, top-line luxury cars. And today every new Lexus ES 330 has alloy wheels, a moonroof and a garage door opener, while every Acura TL has a premium ELS surround sound stereo system.

Many, but not all, near-luxury cars also offer the choice of manual or automatic transmissions. Among the models that can be had with sporty manual trannies are the Chrysler Crossfire, Audi TT, Infiniti G35, Cadillac CTS and Volvo S60.

Front-, Rear- or All-Wheel Drive?
The near-luxury segment reflects broader changes going on in the overall car market. One is the proliferation of drive systems, as consumers who have become accustomed to all-wheel drive on their sport-utility vehicles show an interest in having this feature on their cars, too.

Thus, Infiniti's G35 has rear-wheel-drive and all-wheel-drive trims, while Subaru's top sedan, the Outback 3.0 R, and Jaguar's X-TYPE come standard with all-wheel drive only. Chrysler made all-wheel drive an option available on the 300. In addition, the Mercedes C-Class cars and Volvo S60 can be had with rear- and all-wheel drive, as can the BMW 3-Series, and Audi's A4 is available with the company's quattro all-wheel-drive system. All-wheel-drive versions generally are priced from $1,200 to $2,400 more than their two-wheel-drive counterparts.