Infiniti to Discontinue Q40 Sedan

By

Senior Pricing Analyst

Alex Bernstein is the Senior Pricing Analyst for CarsDirect.com. Each month he studies immense volumes of pricing and incentives data in search of trends that are useful to car shoppers. In the process, he often breaks industry news stories -- his analyses and insights have been featured on websites such as Automotive News, The Detroit News, Autoblog, The Truth About Cars and The Car Connection.

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, Senior Pricing Analyst - May 15, 2015

If you're shopping for luxury on a budget, the Infiniti Q40 has likely appeared in your research. However, competitors have made headway in the realm of luxury cars priced in the low $30,000 range. After the Q40 is finally discontinued this year, the automaker's lineup will get a much-needed shake-up. Here's what you need to know.

Entry-level luxury

In a way, the Q40 was never supposed to happen. The Infiniti Q50 was originally meant to replace the old G37. However, a $3,200 price increase was a shock to some shoppers. The automaker brought back the G37 for a final year under the Q40 nameplate.

The car was successful at allowing Infiniti to not alienate shoppers at the lower end of the price spectrum. Meanwhile, competitors like the BMW 320 and Mercedes-Benz CLA250, and Audi A3 made progress at appealing to shoppers new to luxury brands.

Side-by-side: Infiniti Q40 vs. Infiniti Q50>>

Something new

The Q40 has also been the bridge to something new- the upcoming 2016 Q30. The new entry-level car begins production this summer in Sunderland, England.

A strategic partnership with Mercedes-Benz enables Infiniti to use the same platform and engine as the CLA250, which could make for a very interesting vehicle. Pricing hasn't been announced but we think it'll need to be in the low $30,000 range in order for Infiniti to remain competitive.

Full preview: 2016 Infiniti Q30>>

Alternatives

It's tough to beat current lease offers on the Q40 as low as $279 per month for 39 months with $3,999 due at signing. However, budget luxury shoppers have some attractive alternatives.

The BMW 320 has a lower payment at $269 per month for 36 months with $4,064 at signing, but has a shorter lease term and fewer luxury features like vinyl seats and the lack of a navigation system. The Mercedes-Benz CLA250 is a fine car but leases continue to be expensive- this month the payment is $329 per month for 36 months with $3,623 due at signing.

Right now our pick continues to be the Q40. It routinely makes our monthly ranking of the best lease deals. However, knowing that inventory is winding down, it's unclear how long the deals will last.

See current incentives on the Infiniti Q40>>

Our take

With the demise of the Q40, shoppers are losing a more budget-friendly luxury option. However, the current competitive landscape requires something new and compelling to compete with the likes of the CLA250 and A3. Infiniti is betting shoppers will give the Q30 serious consideration once it debuts.

Get a local quote on the Infiniti Q40>>

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, Senior Pricing Analyst

Alex Bernstein is the Senior Pricing Analyst for CarsDirect.com. Each month he studies immense volumes of pricing and incentives data in search of trends that are useful to car shoppers. In the process, he often breaks industry news stories -- his analyses and insights have been featured on websites such as Automotive News, The Detroit News, Autoblog, The Truth About Cars and The Car Connection.

Follow On: Google+ | Website