BMW Advice

If you’re one of the many Australians that’s ready to take the plunge and turn your motoring from fossil fuelled to electric, you’ll probably have noticed there’s not the same choice in vehicle layout as there is with ICE (Internal Combustion Engine) cars. We’re behind the rest of the developed world in all types of EVs, and when you look at electric sedans Australia is a real back-marker.

Close your eyes and think of a luxury car (just make sure you open them again to read the rest of this story).What did you picture? A BMW X5? Mercedes-Benz S-Class? A Range Rover? Chances are it was something big. But a few years ago luxury car makers had a revelation that they didn’t have to build just big cars and could, in fact, build smaller ones.This allowed them to expand their line-up to new levels of affordability, attracting new customers and growing sales. In 2023 Australian snapped up more than 22,500 small cars costing more than $40,000, which is the figure used to determine the difference between mainstream small cars and luxury small cars.We’ll go into detail below about the best luxury small cars and the biggest sellers, but before we do it’s important to explain the defining characteristics of the small luxury cars Australia currently offers.That’s because inflation, price rises and other business decisions have pushed some mainstream nameplates into the same ‘small car under $40K’ official segment as the genuine luxury compact cars from the likes of Audi, BMW and Mercedes-Benz.For example, the Honda Civic, Peugeot 308 and Volkswagen Golf all fall into the same sector of the market as the Audi A3, BMW 1 Series and Mercedes-Benz A-Class, despite not being direct competitors.While often there isn’t much to split these different types of cars on features, there is a clear demarcation between them in terms of brand prestige and often the ownership experience.The likes of the A3, 1 Series and A-Class can all be considered small luxury vehicles rather than just fancy hatchbacks, and they play a key role in attracting new owners who can then potentially graduate through the ranks of whatever premium brand they choose.It’s the same reason small luxury SUV models are so popular. They act as gateways into the brand at a price more comparable with a high-grade mainstream model.*Based on 2023 VFacts registration dataArriving into the world in 1996, the A3 is a prime example of why luxury car makers, and their larger parent companies, love small cars.That first A3, and every model that followed, uses largely the same underpinnings (‘platform’ in car-speak) as the Volkswagen Golf, which allows for the expensive engineering work to be shared and then charging more for the finished product.In 2023 Audi sold 3319 examples of the A3, while Volkswagen Australia sold 3592 Golfs, which means nearly 7000 sales of a largely similar car for different prices. The A3 range begins at $50,600 and stretches all the way to $99,300 for the RS3 Sedan.In fact, the sedan is another way luxury car makers have continued to grow the small car market. Audi now offers a hatch and sedan, expanding the appeal of the A3 and extending its reach across the smaller segment.The three-pointed star brand was one of the first to enter the true compact luxury car market, announcing the A-Class way back in 1994. After a difficult beginning, mainly because of the now-infamous ‘Elk Test’ that saw the car roll over during a Swedish magazine test, the A-Class has gone on to become a Mercedes staple.In 2023 Mercedes Australia sold 2392 A-Class, which not only made it second on this list but also the brand’s fourth best-selling model here, behind only the GLC and GLE SUVs and the stalwart C-Class sedan and wagon. While Audi and Mercedes jumped into the small car space in the ‘90s, BMW waited until the mid-2000s, launching the first generation 1 Series in 2004. Not only did the brand arrive late to the party, but showed up with a different take on the concept - a rear-wheel drive hatchback.The first 1 Series used a modified version of the 3 Series platform, allowing for the unconventional but very sporty and dynamic layout.It meant sacrificing space, though, and for the third (and current) generation, BMW has swapped to a more conventional front-wheel drive layout.It hasn’t hurt sales, with the latest model notching 1755 sales in 2023 to claim third on this list - which is only the beginning for BMW’s small luxury cars…The Bavarian brand may have been a slow starter, but it’s not only caught up but become a major small car brand with a second entry in the top five sellers. The 2 Series was spun-off from the 1 Series Coupe and Convertible models, although the current line-up features the four-door Gran Coupe instead of the drop-top.Between the 1 and 2 Series line-ups, BMW Australia sold 2887 small cars in 2023, making the duo the second best-sellers after the Audi. Despite being small, the 2 Series also showcases how this end of the market has evolved to a more premium level over time, with the latest high-performance M2 Coupe starting at $121,700.One of the key reasons for BMW’s switch to a front-wheel drive 1 Series was because it allowed the German giant to take advantage of the platform it had already developed for the Mini Hatch.While the original Mini was an affordable and very mainstream small car, when BMW took control of the brand it decided to reinvent it as a premium compact model, starting in 2001.Since then it has continued to evolve and grow to the point that there are currently six variants of the Mini on offer in Australia. This includes the standard Cooper three-door hatch, a largely five-door model, the even larger Clubman, an electric version and a convertible, plus the Countryman SUV (which is stretching the meaning of the word mini).Still, last year Mini managed to sell more than 4200 cars in Australia, of which 2011 were the hatch and thus putting it on our list.

Luxury sports cars are something of a tautology. By their nature sports cars are a luxury item, as the primary purpose of such cars is driving enjoyment, which is very much a luxury.At least, that’s one way to look at it. But what if we take a different view and assess it in the prism of modern luxury cars?In simple terms, luxury sports car brands are the same as you’d think of when you think of prestige cars and exotic sports cars. So, think of popular brands such as BMW and Mercedes-Benz and more high-end sports cars from Aston Martin, Ferrari and Porsche.The list of luxury sports cars that are common in Australia is filled with familiar names, as sports cars tend to sell in less volume and therefore only the most popular models survive. Some familiar names include the BMW 4 Series, Mercedes-Benz C-Class Coupe and Porsche 911.There are other famous names, such as the Ford Mustang and Toyota Supra, but these don’t meet the widely accepted view of what a luxury car is, which is a vehicle that stands out in terms of either comfort or performance.Below you’ll find a rundown of the best luxury sports cars in Australia defined by 2023 sales across the brands and models that meet the criteria of a premium vehicle.While the 2 Series is a broad range, it meets the standards most people would expect from a luxury vehicle. And while it makes the list based on a strong sales year it would also headline a list of affordable luxury sports cars, as it’s the only one on the list in the under $80,000 price segment in the industry's VFacts registration data set.The 2 Series is available as a genuine two-door coupe or four-door Gran Coupe, but the headline attraction is unquestionably the M2.This twin-turbo six-cylinder makes 338kW/550Nm and sends all that power to the rear wheels for a very dynamic driving experience.There’s a variety of 4 Series models to choose from, with the two-door coupe, convertible, four-door Gran Coupe and even the electric i4. BMW has long offered a coupe version of its 3 Series small sedan but made the decision in 2013 to separate the two to create a more distinct sports model.The 4 Series Coupe is the most overtly sporty member of the range, in particular the M4 hero model. The M4 Coupe has long been considered a benchmark for luxury sports cars (dating back to when it was still badged as an M3), especially at what is considered the more affordable end of the market. In the same way BMW offers a sedan and coupe version of its 3 Series so Mercedes does with the C-Class. The C-Class Coupe and Convertible are among the most popular luxury sports cars in Australia and the range is headlined by the muscular AMG C63.Once famous for its growling V8 engines, the latest C63 features a downsized turbocharged four-cylinder engine but it's still a potent beast. The four-cylinder C63 still makes an impressive 350kW power and a staggering 1020Nm of torque, ensuring this is a true luxury sports car in every way.When people think of fancy sports cars chances are the 911 will be the first model that springs to mind. Porsche arguably set the benchmark for luxury sports cars when it launched the first 911 way back in 1964. Since then it has only become more luxurious and sporty with each new generation.The reason it has become so iconic is its blend of comfort and practicality whilst remaining an incredibly capable and dynamic performance vehicle. These days the 911 range includes more than 20 variants so you can choose the level of either luxury or sporty bias depending on your preference and budget.While Chevrolet may not sound like the most obvious luxury brand, the latest generation Corvette certainly fits the bill of a classy sports car. This eighth generation ‘Vette shifted the American brand into a direct fight against the established European premium players like Porsche and Ferrari with its new mid-engine layout and more premium design.The C8 Stingray feels like a true luxury sports car whenever you drive it, blending everyday usability and sharp handling into a single package. It’s also now priced like a luxury car starting at close to $200K, but when compared to its European rivals it makes a strong value argument.It probably shouldn't come as too much of a surprise that there's a second Porsche on this list, as the 718 Cayman bridges the gap between luxury sports cars like the BMW and Mercedes to the more expensive 911.But that doesn't mean the Cayman isn't a great luxury sports car on its own merits. The more compact model offers its own unique driving experience compared to its bigger sibling, especially since it switched to its four-cylinder turbocharged engine when the 718 generation was introduced.Still, like the 911, Porsche offers a wide variety of Boxster variants to suit all (luxury level) tastes and budgets.

The rise of luxury SUVs has driven the increasing amount of luxury family cars, whereas previously it was five-seat sedans like the BMW 5 Series or Mercedes-Benz S-Class, nowadays you can choose from the likes of the BMW X7, Mercedes-Benz GLS, Land Rover Defender 130 and more.

This might seem controversial, but really it’s just logical. If the idea of switching to electric vehicles instead of using combustion-engined cars was entirely about reducing the amount of CO2 produced, it stands to reason car companies would design EVs to be as small, and light, as possible, which, at first, they did (witness the Nissan Leaf, which was, for some time, the world’s biggest-selling

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The hot hatch is in hot demand these days.