There was no single agreed-upon “best luxury car” for 2023: the leading picks differ by body style, size, and the organization doing the judging. For a compact luxury sedan, Car and Driver ranked the BMW 3 Series first; for a full-size sedan, it put the Mercedes-Benz S-Class first. The Genesis G90 earned two different distinctions: second in Car and Driver’s full-size sedan ranking and Cars.com’s Best Luxury Car of 2023. Separately, the Lucid Air won the World Car Awards’ global World Luxury Car title.
These are model-year 2023 rankings and awards, not a current-market buying guide. Use them to build a shortlist, then check the specific car’s local price, condition, history, availability, and ownership costs.
Best luxury cars of 2023 by category
The picks below come from different evaluations, so they are not a head-to-head comparison or a universal ranking. Car and Driver’s rankings are primarily U.S.-oriented and organized by vehicle class; Cars.com selected one award winner; the World Car Awards named a global winner.
| Category or distinction | 2023 pick | What the source says |
|---|---|---|
| Compact luxury sedan | BMW 3 Series | Car and Driver ranked it first in the compact luxury car class, describing it as refined and satisfying to drive across its powertrains. Car and Driver’s 2023 luxury sedan rankings |
| Full-size luxury sedan | Mercedes-Benz S-Class | Car and Driver ranked it first, describing it as comfortable and serene. The Genesis G90 was second. Car and Driver’s 2023 luxury sedan rankings |
| Cars.com luxury-car award | Genesis G90 | Cars.com named it Best Luxury Car of 2023. The award page describes a base powertrain with a 375-hp twin-turbocharged 3.5-liter V6, an eight-speed automatic, and all-wheel drive; that description should not be assumed to cover every trim. Cars.com’s 2023 award announcement |
| Subcompact luxury SUV | Volvo XC40 | Car and Driver ranked it first in its 2023 subcompact luxury SUV section. Car and Driver’s 2023 subcompact luxury SUV rankings |
| World luxury-car award | Lucid Air | The World Car Awards named it the 2023 World Luxury Car. This is a global award, separate from the U.S.-oriented class rankings above. 2023 World Car Awards results |
What distinguishes the leading sedan picks?
BMW 3 Series: compact-sedan choice
Car and Driver’s first-place compact luxury sedan pick is a useful starting point for shoppers who want a smaller sedan and value an engaging drive. Its ranking summary emphasizes refinement and satisfying driving across the 3 Series’ powertrains, rather than declaring one engine or trim the best for every buyer. See the ranking.
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Mercedes-Benz S-Class: full-size comfort
The S-Class led Car and Driver’s full-size luxury sedan ranking. The publication’s summary stresses comfort and serenity—qualities that make this pick especially relevant to a buyer prioritizing a relaxed full-size sedan. The ranking is class-specific; it does not establish that the S-Class is the best choice for a shopper seeking a compact car, SUV, or lower purchase price. See the ranking.
Genesis G90: a strong showing across two sources
The G90 placed second behind the S-Class in Car and Driver’s full-size sedan ranking and was Cars.com’s Best Luxury Car of 2023. Car and Driver noted updated styling, a more upscale cabin, and an optional e-supercharged powertrain for the 2023 model. Cars.com’s award announcement identifies a 375-hp twin-turbo V6, eight-speed automatic, and all-wheel drive for the base powertrain it describes; those specifications are configuration-specific, not a summary of every G90 version. Car and Driver ranking · Cars.com award details.
Rank #2
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How to choose among these 2023 luxury cars
Start with the type of vehicle you need rather than trying to compare every award winner on a single scale. A subcompact SUV such as the XC40 and a full-size sedan such as the S-Class serve different space, seating, and driving needs. Then compare individual vehicles against the priorities that matter for your use.
- Size and space: Decide whether a sedan or SUV fits your passenger, cargo, parking, and daily-use needs.
- Driving character: Consider acceleration, handling, and driving enjoyment alongside comfort.
- Efficiency and value: Compare fuel economy and purchase value for the exact year, trim, and powertrain you are considering.
- Powertrain preference: Verify the specific engine or electric configuration; an award-page specification may apply only to a particular version.
- Budget and ownership: Compare local asking prices, insurance, maintenance, repairs, and other ownership costs using current information rather than relying on an award result.
Car and Driver says its sedan and SUV rankings draw on roughly 200 data points and editors’ real-world driving impressions. Its listed considerations include acceleration, handling, comfort, cargo space, fuel efficiency, value, and driving enjoyment. That method can help structure a comparison, but it cannot determine which trade-offs matter most to an individual buyer. Sedan ranking methodology · SUV ranking methodology.
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What these awards do—and do not—tell you
These results are evidence of recognition within particular classes or award programs, not proof that the same car suits every shopper. Car and Driver’s class rankings, Cars.com’s award, and the World Car Awards’ global result use different evaluators and categories. In particular, the Lucid Air’s World Luxury Car win should not be treated as a direct comparison with the BMW 3 Series, S-Class, or XC40 in their respective class rankings. The 2023 Editors’ Choice page offers broader award context, but its surfaced information does not establish a complete list of luxury-model winners. Car and Driver’s 2023 Editors’ Choice.
For a used 2023 vehicle, an award says nothing definitive about today’s asking price, local availability, vehicle history, or the condition of a particular example. Check current listings and have the specific car’s service records, title, inspection results, and equipment verified before deciding.
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