These are the best luxury cars you can get for £20,000 and under

New car prices have risen dramatically in recent years, as the cost of components and additional safety and technology has dramatically driven up the price of models.

Even a new entry-level Ford Fiesta and Volkswagen Polo will cost you £19,000 these days, while the humble Toyota Yaris now has a steep starting price of £21,460.

But if you’re happy to shop on the used market, it’s impressive how far your money will go, particularly when it comes to luxury cars, which are some of the most heavily depreciating vehicles around.

Though you will need to factor in the far higher running costs and bills of these models, if you want to experience a champagne lifestyle on a lemonade budget, these are the best choices.

Mercedes S-Class

In the luxury car world, few car names hold more meaning than the Mercedes S-Class. It’s been the German firm’s flagship for a number of years, pioneering a range of new safety and technology features over the decades.

A £20,000 budget will comfortably buy a sixth generation model, introduced in 2013. Bringing a far more modern design than its predecessor, its interior still looks modern and cutting-edge, with a large media display and digital dial screen. The smooth S350d diesel model would be our pick, and you can expect to pay around £19,000 for a 2014 car with 100,000 miles on the clock.

Audi A8

The Audi A8 is another key player in the luxury car world, and you get a huge amount for your money with this German limo. For this budget you can get a third-generation A8, introduced in 2010, bringing a particularly classy and elegant design, aided by modern touches like Audi’s then-new MMI infotainment system and full LED lighting.

Packed full of technology, the A8 is effortlessly comfortable and offers a huge amount of room if you opt for a long wheelbase model. You can get behind the wheel of an early 2011- or 2012-plate A8 for less than £10,000, but if you want to splash the cash, a £20,000 budget will stretch to a relatively new 2016 version.

BMW 7 Series

Completing the German trio of luxury cars is the BMW 7 Series. It’s another popular choice in the chauffeur market thanks to its impressive comfort, space and refinement, and is more enjoyable to drive than competitors from Audi and Mercedes.

A £20,000 budget will get you a fifth-generation 7 Series, sold between 2009 and 2015, and it’s a car that brought a vast amount of tech – including night vision technology that could detect pedestrians in the road. High-mileage examples of this age can be picked up for as little as £6,500, but the top £20,000 budget will buy a late 2015 car with around 40,000 miles on the clock.

Porsche Panamera

Porsche might not be the most obvious contender in the luxury car space, but the Panamera is the closest thing the brand has got to rivalling the luxury establishment. Introduced in 2009, it was Porsche’s first four-door model, outside of the Cayenne SUV, and brought increased space but not at the expense of sportiness.

The styling won’t be to everyone’s taste, but it’s hard to dispute the quality and driving experience of the Panamera. A diesel model was introduced in 2011, offering more than 40mpg. The cheapest used Panameras start from £15,000, but this budget would stretch to a 2012 car with 100,000 miles on the odometer.

Bentley Continental Flying Spur

When new in 2005, Bentley’s Flying Spur would have set its rich customers back around £150,000, but thanks to steep depreciation, you can now pick one up for as little as £13,000. Oozing opulence, the Flying Spur’s cabin is brimmed with the finest materials to offer the most luxurious experience of any on this list.

Its 552bhp 6.0-litre W12 engine also offers superb performance, and it offers a particularly high-end feel for not a huge amount of money. Just be prepared for the sky-high bills if anything goes wrong, and for little more than 20mpg on the fuel economy front.

Jaguar XJ

For a number of years the Jaguar XJ was the chosen model to transport ministers and dignitaries around the UK, and for good reason as the XJ is very quiet on the move and ideal for longer trips.

Our vote would go to the latest generation of XJ, sold between 2009 and 2019, before Jaguar discontinued its large luxury saloon. Still looking modern inside and out, you can pick up a tidy XJ for as little as £6,500, but this budget could comfortably extend to a 2016-registered example.

Range Rover

While luxury cars are traditionally thought of as saloons, an increasing number of luxury SUVs are on the market. But the original option – and arguably still best – is the Range Rover. Offering outstanding capability, it fits in whether on an off-road course or parked on a Central London street.

A £20,000 budget will just about squeeze you into a previous-generation example, sold between 2013 and 2022. Offering a modern interior and outstanding comfort on the move, it’s a superb, luxurious choice. Just be prepared for steep bills as the Range Rover isn’t known for its reliability.