If you’re shopping for a new car and want to stand out, a luxury badge like BMW often appeals. While cheaper cars might save your wallet, driving a premium vehicle offers style and performance that can make a big difference. However, these benefits usually come with a higher price tag. In the U.S., even the most affordable BMW costs just under $40,000.
Right now, only one BMW model is available for less than $40,000. This article covers everything you need to know about that model, including its features, pricing, and options.
The BMW 2-Series Gran Coupe: The Only BMW Under $40,000
The 2026 BMW 2-Series Gran Coupe is the brand’s smallest sedan and the only model priced under $40,000. Unlike the similarly named 2-Series coupe, this Gran Coupe is built on BMW’s UKL2 platform. This platform also underpins the 1-Series hatchback. In simple terms, the 2-Series Gran Coupe is to the 1-Series what the Volkswagen Jetta is to the Golf—essentially a hatchback with an extended trunk.
The Second Generation 2-Series Gran Coupe Arrives
The latest 2-Series Gran Coupe debuted as a 2025 model. It introduced sharper styling and a modernized interior compared to the previous version that launched in 2020. The new generation also features more powerful engine options, giving drivers better performance for their money.
At launch, only all-wheel-drive variants (the 228 xDrive and sportier M235) were available. The more affordable front-wheel-drive (FWD) 228 model arrived in the second year of sales.
The Base 228 Model Starts Just Below $40,000
The entry-level 228 model shares the same 2.0-liter turbocharged engine as its AWD sibling but powers only the front wheels. Its starting price is $39,600, making it the only BMW you can currently buy in America for less than $40,000.
Staying Under $40,000 Requires Resisting Extras
While the base 228 comes well equipped, adding many options can quickly push the price beyond $40,000. Fortunately, it includes a solid set of standard features. These include a 10.8-inch infotainment screen with Apple CarPlay, Android Auto, and an AirConsole feature that lets passengers play games while stuck in traffic.
The car also offers a premium 12-speaker Harman-Kardon sound system, supportive synthetic leather seats, ambient lighting, heated front seats, and multi-zone climate control—all standard even on this entry-level trim.
Optional Features for Those Willing to Spend More
If your budget allows, the 228 can be upgraded with several appealing options. A heated steering wheel costs $200, while enhanced Active Front Seats with better lumbar support go for $450. Sporty cosmetic upgrades, like a black roof and mirror caps, are available for $300.
More comprehensive packages include the $1,750 Technology package, which adds a 3D surround-view camera, heads-up display, and Parking Assistant Plus. The Premium package offers a panoramic moonroof and remote engine start. Fully loaded, the 228 can reach $48,200 with all available options, including bigger wheels and premium paint colors.
Performance That Matches Its Price
The 228’s turbocharged 2.0-liter inline-four engine produces 241 horsepower and 295 lb-ft of torque. It accelerates to 60 mph in about 6.1 seconds—slightly slower than the AWD version, which does it three-tenths faster due to better traction.
The front-wheel-drive setup limits torque availability at low RPMs to improve grip, which affects acceleration. Power is sent through a seven-speed automatic transmission with paddle shifters for manual control.
Need More Space? Consider the BMW X1 SUV
If the 2-Series Gran Coupe feels cramped, the BMW X1 offers a practical alternative. Also built on the UKL2 platform, the X1 uses the same 2.0-liter turbo engine but has a roomier cabin and more cargo space.
The X1 provides three more inches of rear legroom and 10 extra cubic feet of cargo capacity. Its taller design adds headroom, especially in the back, compared to the sloped roof of the 2-Series.
Though it starts at $41,350—above $40,000—the X1 includes all-wheel drive and similar standard features. It’s an excellent choice for families or anyone needing more versatility.
Conclusion: A Solid BMW Choice Near $40K
For buyers seeking a BMW under $40,000, the 2026 2-Series Gran Coupe 228 stands alone. It offers premium style, modern features, and engaging performance at a relatively affordable price. For those needing extra space, the BMW X1 provides a compelling, slightly more expensive option with greater practicality.
Whatever your preferences, you can find a strong BMW model close to the $40,000 mark.
