Best 2008 Luxury Cars

Lexus ES is a "cheap" luxury car

For luxury cars, $40,000 is pretty much the starting point, although we include a couple of lower-priced sedans that reviews say put a much higher emphasis on ride, features and comfort rather than sporty driving capabilities. Other cars in the $30,000 to $40,000 price range that are more performance-oriented are featured in our report on sports sedans. These models include the top-rated BMW 3 Series (*Est. $32,700 to $53,800), Infiniti G35 (*Est. $32,250 to $34,750) and Cadillac CTS (*Est. $33,675 to $35,975), each of which are highlighted in our top picks for sports sedans. Higher-priced models that some classify as luxury cars, but are stronger competitors in the sports sedan class, are the Infiniti M (*Est. $43,900 to $52,750), BMW 5 Series (*Est. $44,600 to $83,900) ,Jaguar XF (*Est. $49,200 to $63,700), Lexus GS (*Est. $44,550 to $55,800) ,Audi A6 (*Est. $42,950 to $72,350) and Mercedes E-Class (*Est. $51,200 to $85,300), all of which are also covered in our other report.

The Lexus ES 350 (*Est. $34,120)does not compare favorably with most similarly priced sport sedans, but shines as a bargain-priced near-luxury car. Consumer Guide names the Lexus ES 350 a Best Buy, claiming the "comfortable ES 350 is focused on coddling, which it does extremely well." Cars.com gives the Lexus ES its Best Bet recommendation, calling the front-wheel-drive Lexus an "entry-level luxury sedan" that "has all the things buyers in this segment expect: capable performance, a serene ride, advanced safety features and a nicely appointed cabin." The Lexus ES 350 also scores Best in Class at Kiplinger's and IntelliChoice.

Reviews praise the Lexus ES 350's quiet cabin, plush ride, apparent high quality and strong reputation for reliability. Like more expensive luxury cars, the Lexus ES offers a host of premium options such as a Mark Levinson surround-sound audio system, navigation system with rear-view camera, heated and ventilated front seats, panorama glass sunroof, power rear sunshade and adaptive cruise control. The sole available powertrain is a 272-hp V6 matched with a six-speed automatic transmission. Power is adequate and handling is competent, reviews say, although not on par with most sports sedans. The Car Connection comments, "Hard cornering is actively discouraged by lots of body roll and ample tire squeal."

Lexus LS 460 is a good value despite its price

While the Lexus ES 350 is easily the best value among entry-level luxury cars, the Lexus LS 460 (*Est. $62,900 to $72,900) dominates Lexus' higher price range. The LS 460 and long-wheelbase Lexus LS 460 L are the top of Lexus' lineup, and they get strong accolades. Edmunds.com names the LS 460 among its top sedans priced over $60,000. Edmunds.com notes, "No longer simply an alternative, the LS is a fully qualified choice for a luxury sedan" thanks to its "utter refinement, eerily silent operation, a plush ride, respectable performance and strong value." Strong value? Yes, according to many critics. Cars.com names the Lexus LS a Best Bet and explains, "the LS 460's base price looks more reasonable" when compared to prime rivals such as the Audi A8 (*Est. $70,690 to $120,100), BMW 750i (*Est. $76,800 to $79,900)and Mercedes S550 (*Est. $87,575 to $89,700).

The Lexus LS 460 was redesigned in 2007, emerging with new style and a 380-hp V8 coupled with an industry-first eight-speed automatic transmission driving the rear wheels. One much-promoted and intriguing new feature is the "Advanced Parking Guidance System" that allows the car to park itself under ideal conditions. And for the most part, testers say the self-parking works quite well. The system uses the navigation system's LCD screen to identify the parking spot and guide you into setting up the car into the right position -- then the car parks itself while you control the brake. Most testers are pretty floored with the technology, though some detractors say the system is too slow and requires an oversize parking spot. Others note that snow and ice can sometimes confuse the sensors.

Reviews say ride quality is sumptuous, with great seats and a library-quiet cabin. A standard pre-collision system responds when it senses an imminent collision by tightening the seat belts, putting on the brakes and increasing the stiffness of the air suspension. The navigation system with XM satellite radio can receive live traffic information for metropolitan areas, rerouting you around accidents and delays. In tests, the nav system is accurate and easy to program with voice commands, which can also be used for audio and cell-phone controls. In addition, options include a massage setting in the rear seat, a chilled compartment for food and drink, and a rear-seat DVD player.

Recommendations for the Lexus LS 460 also come from Consumer Guide, Kelley Blue Book, Consumers Digest and IntelliChoice. Editors at ForbesAutos.com call the current LS 460 "a technological and luxurious tour de force as groundbreaking as the first LS that launched in 1990." Many other reviewers agree. Its great blend of features, performance and safety are all outstanding, they say, but the Lexus LS 460's high price doesn't include the same level of prestige as some Mercedes and BMW models.

Mercedes-Benz S-Class is the best "prestige" luxury sedan

One of the Lexus LS 460's primary competitors is the Mercedes-Benz S-Class (*est. $86,700 to $194,000), which suffers no such lack of prestige. The Mercedes-Benz S550 (*Est. $87,575 to $89,700) gets most of the reviews, with a 5.5-liter V8 engine. The Mercedes-Benz S600 (*Est. $144,200) has a 5.5-liter V12, while the Mercedes-Benz S65 AMG (*Est. $194,000) has a twin-turbo 6.0-liter V12 rated at an incredible 604 hp. In a Motor Trend comparison test against three other luxury sedans, the Mercedes-Benz S550 performs superbly, although it takes second place behind the semi-exotic Maserati Quattroporte (*Est. $114,750 to $138,236) Regardless, editors say the S550 "is arguably the best car here by all objective measures."

Also redesigned in 2007, the Mercedes-Benz S550 has pretty much every feature in the book, although it lacks an automatic parking system like the Lexus LS 460. The S550 has an anti-collision system, which tightens seat belts and makes other adjustments when an imminent collision is sensed. Another innovation is an infrared night-vision assist feature, which helps "see" the road and possible obstructions in the distance at night. It also works with the rear-view camera. Adaptive cruise control will automatically slow the car if it catches up to another vehicle.

Ride comfort is superlative, with adjustable bladders in the seats plus a variety of massage settings. Those seats are both heated and cooled, of course. The navigation system is reportedly excellent, and an 8-inch LCD in the dash controls lets drivers see the nav map right up front. Voice commands can be used for navigation and audio systems.

With its 382-hp V8 engine and seven-speed automatic transmission, the Mercedes is also fast, clocked by Road & Track at 5.7 seconds from zero to 60 mph. The S-Class isn't cheap, however, and if you're looking at a car this expensive, emotion probably plays a large part in the buying process. Nonetheless, reviews say the Mercedes-Benz S550 is excellent, and it scores more top picks than any other car in this report. Automobile magazine names it an All-Star, noting, "In a segment with no shortage of excellent competitors, from the Lexus LS 460 to the BMW 7 Series, the Mercedes-Benz S-class stands out, because pretty much everything about it is just right."