We all know that Lexus is one of the industry leaders when it comes to offering us luxury, innovative tech, and reasonable prices, especially with models like the Lexus UX300h, the Lexus NX, and the Lexus RZ, which all have starting prices of under $44,000. But, for some of the higher-end trims, which boast some of the best features and more potent performance, like the Lexus IS 500 F SPORT, it is going to cost over $60,000.Finding a vehicle that has all the luxe appointments, still has a sporty ride with a powerful engine, and without the huge pricetag, can be quite a challenge, but there is an American sedan produced by Cadillac this year that fills these hard-to-fill boots. This American sedan is available with a meaty engine, some lush features, and some real performance guts. We are taking a look at this more affordable-than-a-Lexus, yet still sporty and luxurious sedan, and have brought you all the information you may need about it. The 2026 Cadillac CT4 Impressive Engines, A Luxurious Interior, And Connected Driving Cadillac The 2026 Cadillac CT4 delivers an enticing blend of performance, style, and value that challenges Lexus's luxury offerings at a more accessible price point. This sedan combines striking design with a refined, well-appointed interior, while offering buyers a choice between two capable engines and either rear-wheel or all-wheel drive configurations across three trim levels.For this overview, we're focusing on the standard CT4 lineup—the luxury sedan that balances sophistication with affordability—rather than the high-performance CT4-V or range-topping CT4-V Blackwing variants, which command significantly higher prices and deliver substantially more power. Low Starting Price Of $35,600, But Prices Can Climb CarBuzz2026 Cadillac CT4 Trims And PricesWhich one of the two engines you choose, what trim, and what driveline, will decide how much you pay for a new CT4, but if you go for the most basic setup, prices start at $37,095. The three trims available this year are the Luxury, the Premium Luxury, and the Sport.Prices don't start badly, but they can be pushed up quickly if you want a more potent ride. The Luxury and Sport trims are only available with a 2.0-liter turbocharged inline-four, so prices stay the same as above, but the Premium Luxury is available with either the 2.0-liter inline-four, or it can be equipped with a 2.7-liter twin-turbocharged inline-four and pushes the price up to $46,345 if you opt for RWD or $48,345 if you opt for AWD. 2026 Cadillac CT4 Performance Specifications Bring A Trailer Both engine options deliver respectable horsepower and acceleration, with the optional 2.7-liter providing notably quicker 0-60 MPH performance. Regardless of choice, drivers will appreciate the smooth power delivery and responsive throttle characteristics that define both powerplants.The 2.0-liter engine showcases thoughtful engineering throughout. Its all-aluminum construction reduces weight, while the twin-scroll turbocharger minimizes lag by separately channeling exhaust from cylinder pairs for crisp throttle response. Direct injection and variable valve timing work together to optimize combustion efficiency. The integrated exhaust manifold further enhances the engine's capabilities by accelerating warm-up times and reducing emissions. This comprehensive approach results in a responsive, well-balanced powerplant that delivers impressive fuel economy without sacrificing performance.Cadillac However, it is the 2.7-liter mill that is more advanced and provides a significantly sportier ride. It is also constructed with an all-aluminum block, but its defining element is the dual-volute turbocharger—a unique setup that utilizes two spiral-shaped exhaust passages arranged concentrically. Unlike twin-scroll turbos, this design channels exhaust more precisely, delivering faster boost and reducing lag very well across a wide RPM range.Cadillac The Premium Luxury's engine also utilizes a sliding camshaft with three modes: low lift, high lift, and cylinder deactivation. This allows it to switch smoothly between efficiency and power depending on how you're driving, while active thermal management and an electric water pump help keep the temperature in check consistently, even in stop-start traffic. It's not all just about that extra sprint capability for the extra cost. Luxury Appointments That Rival The Best Cadillac To go up against Lexus and the rest of the luxury sedan market, the CT4 has to boast something pretty impressive to pull it off, and considering its low starting price, we think that it does a grand job. Even at the base level. What the CT4 looks to offer is a good blend of luxuriousness, athleticism, and usable comfort. Interior And Exterior Design That Stand Out Cadillac Each trim level brings its own distinct personality through carefully curated design elements and upscale features. The base Luxury trim establishes an impressive foundation with LED lighting, body-colored accents, and a clean, sophisticated profile. The interior doesn't skimp on essentials—dual-zone climate control, genuine aluminum trim, and a power-adjustable driver's seat with lumbar support come standard. The synthetic leather seats feature precise stitching that elevates them well beyond typical entry-level materials.Cadillac Moving up to Premium Luxury transforms the experience with genuine leather seating, a choice of wood or aluminum trim finishes, and soft ambient lighting that bathes the cabin in warmth. This trim distinguishes itself through thoughtful details: subtle chrome accents, memory settings for both front seats, and a power tilt-and-telescoping steering column. Rolling on 18-inch wheels with a distinctive grille design and chrome window trim, the Premium Luxury makes its presence known without being ostentatious.CarBuzz The Sport trim takes a different approach, trading chrome exterior elements for gloss-black accents and darkened taillights that signal its performance intentions. Yet luxury remains paramount inside, where leather seating meets a driver-focused cockpit layout and a premium leather-wrapped steering wheel featuring textured grips. For those wanting to emphasize the athletic character, optional red contrast stitching and microfiber inserts create an appealing sport-luxury aesthetic. Smart, Premium Technology That Takes It To Lexus Cadillac To be a big hitter in the luxury sedan market, you need to offer high-end tech, and though Lexus is one of the most innovative car brands on the market (though they havelost top spot to another Asian brand for a few years running), they are hard to beat. That said, Cadillac has not cut any corners on tech across the lineup.The Luxury trim offers an eight-inch HD touchscreen with wireless smartphone connection, a Wi-Fi hotspot, and voice recognition, while safety is taken care of with forward collision alert, lane departure warning, and auto emergency braking. If you opt for the Premium Luxury trim, tech takes a clear step up with features including: 14-speaker surround system An optional 12-inch touchscreen An auto-dimming rearview mirror Wireless charging Enhanced safety features Again, the Sport trim stays classy, but you also get some performance-focused tech in the form of performance gauges, G-force meters, and an optional HUD that gives you real-time info on the windshield. The whole setup is driver-focused but not stripped down, so you get the best of luxury and sport in one package. Performance Features Throughout That Feel Pricier Cadillac Aside from what you can get from the engines, the whole setup oozes class and connected driving. The base trim comes equipped with a well-balanced suspension setup, which is designed for comfort in the city but is still tight enough for something a little more fun. You get drive modes like Tour, Sport, and Snow/Ice to adjust the responsiveness of the suspension and throttle, depending on how you are driving.The Premium Luxury trim adds the option of Magnetic Ride Control, which reads the road in real-time and adjusts damping almost instantly for a smooth ride. If you want even more sportiness, you can choose an upgraded steering calibration that sharpens feedback even more. But, as the name suggests, the Sport trim is the trim to look for if you want luxury and athletic prowess.Cadillac The Sport trim boasts sport-tuned suspension, a more responsive steering setup, Brembo brakes up front (which are optional on other trims), and unique 18-inch alloys wrapped in low-profile tires that give you sharp grip and precision on the road. You also get alloy pedals and paddle shifters in the cabin, so it feels like you are driving something a bit more sporty as well. The Cheapest New Lexus Sedan You Can Buy Right Now Lexus From everything we have looked at, the CT4 does look like a very impressive entry-level-priced but standout luxury sedan this year. But how does it stack up against the cheapest Lexus sedan you can buy this year? The cheapest Lexus sedan on the market, and a direct competitor to the CT4, is the Lexus IS, which has a starting price of $41,830 - so already $4,735 more expensive than the cheapest flavor of the CT4.It does boast some decent features from the base trim (the IS 300) and a reasonably powerful turbocharged inline-four as standard, but is it worth the extra premium? 2025 Lexus IS Trims And Prices How The CT4 And The Lexus IS Compare 3/4 front view of red 2025 Lexus IS 500Though both are luxury sedans, they do have slightly different views on how to get the job done. Lexus leans toward refined power and traditional craftsmanship, while Cadillac leans toward modern performance and, arguably, more driver engagement.The IS lineup starts with the IS 300, which is equipped with a 2.0-liter turbocharged inline-four in RWD models (which can kick out 241 horsepower) and a 3.5-liter naturally aspirated V-6 (260 horsepower) in AWD versions. So, you do get more horsepower from the start, but only four more, and at some price difference. The good thing about the engine options for the IS is that it does give you a choice between turbo efficiency and a little more spirited, torquey, and smooth V-power, but this is countered by the CT4's turbocharged lineup, which can be increased in power depending on what kind of driving you enjoy.The IS 350 increases power output to 311 horsepower from the same V-6 as the IS 300 AWD, and includes some decent chassis tweaks for a sportier edge, aligning itself with the Premium Luxury trim. But again, it is slightly more expensive. This time, though, it is not greatly more expensive, and you do get one more horsepower and a V-engine. The standout model, though, is by far the IS 500 F SPORT PERFORMANCE; it boasts a 472-horsepower V-8 with a throaty exhaust; it delivers a traditional-feeling ride, and it is only available in RWD, so it is tuned in the typical Lexus fashion for having fun. The downside is that it does cost a lot of money, and if you are in the market for spending $60,000 upwards, Cadillac does have the 472-horsepower CT4-V Blackwing to consider.Sources: Lexus, Kelley Blue Book, J.D. Power
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