Best luxury sedans in Australia 2026: Lexus ES, BMW 3 Series, E-Class and more

The best premium sedans in Australia in 2026, including the new Lexus ES, the all new BMW 3 Series, Audi A5, Genesis G80, BMW 5 Series and Mercedes-Benz E-Class, with current pricing on each.

By Varun Punyamurtula ·

New 2027 BMW 3 Series: M350 xDrive in red and 320 in grey parked side by side (Image: BMW Group)

SUVs may dominate the sales charts, but a luxury sedan still does some things better. It sits lower, handles better, rides more quietly and usually uses less fuel. And in 2026 there is a wave of new ones, led by an all new BMW 3 Series and a fresh generation Lexus ES.

Here are the best premium sedans you can buy in Australia right now, from about $75,000 to $160,000, with current pricing on each.

Quick answer: The best luxury sedan for most Australians is the Lexus ES, from $75,000 plus on road costs for the ES 300h hybrid. The best driver's choice is the new BMW 3 Series, from $83,900 plus on road costs when it arrives in early 2027. For more space and executive comfort, the BMW 5 Series and Mercedes-Benz E-Class are the benchmarks.
New 2027 BMW 3 Series: M350 xDrive in red and 320 in grey parked side by side (Image: BMW Group)

Our verdict in one line: the new Lexus ES and BMW 3 Series make 2026 the best time in years to choose a sedan over an SUV.

Best luxury sedans at a glance

  • Best overall: Lexus ES, from $75,000 plus on road costs (ES 300h)
  • Best to drive: BMW 3 Series (new generation), from $83,900 plus on road costs
  • Best plug in hybrid: Audi A5 Sedan e-hybrid, $89,900 plus on road costs
  • Best value large sedan: Genesis G80, from $104,200 plus on road costs
  • Best executive sedan: BMW 5 Series, 520i from $116,900 plus on road costs
  • Most luxurious: Mercedes-Benz E-Class, E 200 from $117,900 plus on road costs
  • Best electric value: Tesla Model 3, from $45,900 plus on road costs

Best overall: Lexus ES

The all new eighth generation ES is a big step forward, with a far more modern cabin and a choice of hybrid or fully electric power for the first time.

2026 Lexus ES luxury sedan, front three quarter view (Image: Lexus Australia)
  • Price: ES 300h hybrid from $75,000 plus on road costs. The electric ES 500e Sports Luxury is $84,000 plus on road costs.
  • Why we pick it: a quiet, comfortable ride, Lexus reliability and strong value. The electric ES 500e is priced under the luxury car tax threshold for fuel efficient cars.
  • The catch: it is more about comfort than corners.
2026 Lexus ES dashboard and front seats, right hand drive (Image: Lexus Australia)

Best to drive: BMW 3 Series

The all new 3 Series arrives in Australia in the first quarter of 2027 and it is better equipped than ever. Adaptive M suspension and a head up display are standard across the range, and there is an electric i3 for the first time.

New BMW 320 sedan in grey, front three quarter view (Image: BMW Group)
  • Price: 320 from $83,900 plus on road costs. The electric i3 40 xDrive is $96,900, the i3 50 xDrive is $112,900 and the M350 xDrive is $128,900, all plus on road costs.
  • Why we pick it: the most enjoyable sedan to drive in this group, with a range that covers petrol and electric buyers.
  • Read more: our full 2027 BMW 3 Series review.

Best plug in hybrid: Audi A5 Sedan

The new A5 replaces the A4 as Audi's mid size sedan, and the plug in hybrid e-hybrid quattro is the standout. It pairs a turbo petrol engine with an electric motor for strong performance and the ability to do short trips on electricity.

Audi A5 sedan in white, front view (Image: Alexander Migl, CC BY-SA 4.0)
  • Price: A5 Sedan e-hybrid quattro $89,900 plus on road costs. Petrol versions are also available.
  • Why we pick it: performance, all wheel drive and lower fuel use if you can charge at home.
  • The catch: the cabin is more digital than some buyers will like.

Best value large sedan: Genesis G80

Genesis is Hyundai's luxury brand, and the G80 offers a big, plush executive sedan for less than the German alternatives. It comes with a long list of standard equipment and Genesis's ownership benefits.

  • Price: from $104,200 plus on road costs
  • Why we pick it: a lot of luxury car for the money, with a refined ride and a beautifully finished cabin.
  • The catch: resale value is not as strong as the German brands.

Best executive sedan: BMW 5 Series

The 5 Series is a large sedan that drives like a smaller one. The cabin is roomy and high tech, and there is an electric i5 alongside the petrol 520i.

  • Price: 520i M Sport from $116,900 plus on road costs. The electric i5 starts at $155,900 plus on road costs.
  • Why we pick it: the best balance of comfort, space and driving quality in the large luxury class.

Most luxurious: Mercedes-Benz E-Class

If you want a sedan that feels like a smaller S-Class, the E-Class is it. The ride is soft and quiet, the interior is lavish, and the technology includes Mercedes' latest screens and driver assist systems.

Mercedes-Benz C 300 AMG Line sedan, front three quarter view (Image: Damian B Oh, CC BY-SA 4.0)
  • Price: E 200 from $117,900 plus on road costs. The E 300 is about $132,000 plus on road costs.
  • Why we pick it: comfort and cabin ambience that the rivals cannot quite match.
  • Smaller option: the C-Class (pictured) gives you a similar feel in a more compact size.

Best electric value: Tesla Model 3

If you want a premium feeling sedan without a luxury price, the new entry Model 3 RWD is hard to ignore. It has up to 572km of claimed range and access to Tesla's Supercharger network.

Tesla Model 3 in grey driving on a coastal highway, front view (Image: Tesla)
  • Price: Model 3 RWD from $45,900 plus on road costs
  • Why we pick it: low running costs, strong range and FBT exemption on a novated lease.
  • Read more: our Tesla Model 3 RWD review.

Want even more luxury?

At the top of the market sit the BMW 7 Series and i7, the Mercedes-Benz S-Class and EQS, and the Audi RS e-tron GT. We compare them in our guide to the best BMW i7 rivals in Australia.

Which luxury sedan should you buy?

  • Best for most buyers: Lexus ES 300h
  • Best for keen drivers: BMW 3 Series
  • Best for short electric commutes: Audi A5 Sedan e-hybrid
  • Best for value: Genesis G80
  • Best for space and long trips: BMW 5 Series
  • Best for pure comfort: Mercedes-Benz E-Class
  • Best budget electric: Tesla Model 3 RWD

Go for it if: you mostly drive on sealed roads, want a quieter and more efficient car than an SUV, and enjoy driving.

Skip it if: you need a high driving position, a big boot for prams or regular gravel road access.

Know which sedan you want? Tell us and we will find the best deal anywhere in Australia on a new, demo, near new or used one. Luxury sedans often have strong demo discounts. Get the best deal.

Frequently asked questions

What is the best luxury sedan in Australia in 2026?

Our pick is the new Lexus ES, from $75,000 plus on road costs for the ES 300h hybrid. If driving matters most, the new BMW 3 Series from $83,900 plus on road costs.

What is the cheapest luxury sedan in Australia?

Among the cars in this guide, the Lexus ES 300h at $75,000 plus on road costs is the cheapest traditional luxury sedan. The Tesla Model 3 RWD costs less at $45,900 plus on road costs.

When does the new BMW 3 Series arrive in Australia?

BMW Australia expects the new 3 Series in the first quarter of 2027, priced from $83,900 plus on road costs for the 320.

Is a sedan better than an SUV?

A sedan usually rides and handles better, is quieter and uses less fuel. An SUV gives you a higher seat, easier access and more cargo space. If you rarely need the extra space, a sedan is often the better car to drive.

What is the best electric luxury sedan?

For value, the Lexus ES 500e at $84,000 plus on road costs. At the top end, the BMW i7, Mercedes-Benz EQS and Audi RS e-tron GT.

Selling your current car? We can help you sell your car, and you can check what it is worth with our car value tool.

Prices checked on 28 October 2026 against published Australian pricing. All prices are manufacturer list prices plus on road costs. Images: Lexus Australia, BMW Group, Tesla and Wikimedia Commons contributors as credited.

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Tags: Sedans, BMW, Hybrid, Comparisons

Sources

  1. Lexus Australia
  2. BMW Group PressClub: The new BMW 3 Series
  3. Audi Australia
  4. Genesis Australia
  5. Mercedes-Benz Australia
  6. Tesla Australia

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