New luxury SUVs are still all the rage, but there's just one problem: they're way too expensive. Not everybody can afford to take out a second mortgage on a new Cadillac or Mercedes-Benz. However, if you're smart with your money, the used market has far better alternatives with the same luxury features and powerful engines for half the price. That said, we want to focus on one luxury SUV that not only has an interior that you won't want to leave, but it's reliable and affordable, too. The Lexus RX is one of the brand's most popular models. It's currently in its fifth generation with a variety of trims and powertrains.Taking a step back reveals the fourth generation is just as nice, still looks modern, and feels nice inside. The entire fourth generation is a valid choice for those browsing the used luxury SUV market, but a budget of $35,000 brings us to the 2021 model year. That year marks the halfway point between its facelift and the start of the fifth-gen model. It depreciated enough to be mostly affordable, but it's new enough to feel modern inside and out. Here's everything you need to know about this cheap, luxurious family-hauler.All specs are sourced directly from the manufacturer. Used car prices vary depending on a variety of factors. Welcome Home to Your Lexus RX LexusThe Lexus RX once changed the way America views SUVs. The genre was primarily rugged, utilitarian people-movers; there were high-end versions of these SUVs, and plenty with luxurious interiors, but most were built on truck platforms with body-on-frame construction. Honda's luxury brand made a big move by building the RX on a car platform. This made it more comfortable to drive around town and more fuel efficient.Since its debut in 1999, the model has undergone five generations and tons of changes. It's still a unibody SUV, but the current model features small, turbocharged engines and hybrid options.For this article, we'd like to focus on the fourth generation. The 4th-gen RX went on sale for the 2016 model year, and had a single facelift for the 2020 model year before ending after the 2022 model year. 4th-Gen Lexus RX Current Values LexusThe fourth-generation Lexus RX is about as recent as we can get without breaking our $35,000 budget. Even the 2022 models are keeping just enough value to push it over the edge. However, the 2016–2021 model years are fair game, and usually reasonably priced. The graph above signifies recent sales and value data for the base model of the 2021 model year with front-wheel drive. It doesn't necessarily represent exactly what you're going to pay for one, since used prices vary. Used cars may be more or less expensive depending on factors like the number of previous owners, how many miles are on the odometer, its mechanical and cosmetic conditions, and more. 2021 is the Model Year to Buy LexusThe older model years are almost always going to be worth less money, since depreciation continues to eat away at every car for years after its sold. Keeping that in mind, we can see how the earlier fourth-gen RXs are far more affordable. In fact, Kelley Blue Book's data shows a base model 2016 RX (the first model year of this generation) is worth about $20,600. If you prefer a newer car with fewer miles, then our go-to is the 2021 model year. It's as new as you can get while still staying under $35,000. Only the base model with FWD has an average value under 435k, though. You may have to search for older examples for higher trims or more options, 2021 Lexus RX Powertrains and Specs LexusThe 2021 Lexus RX is our favorite option if you're okay with settling for a base trim. The whole generation has the same powertrains, though: a 3.5-liter naturally-aspirated gas V6, or a hybrid variant of the same engine. Those with a gas-only powertrain had an eight-speed automatic transmission, while the hybrid options were equipped with an electronically-controlled CVT. Either way, buyers could choose between front- or all-wheel drive. While the difference isn't huge, the hybrid model is more powerful with 308 horsepower, while the gas-only model has 295 hp. 4th-Gen Lexus RX Reliability LexusLexus is the most reliable brand in the country according to recent data, so it's no surprise to see the RX SUV's exceptional reliability. Most generations are solid, with great powertrains that shouldn't cause any problems as long as they're taken care of. We placed the fourth generation in the middle of the pack in terms of the most reliable generations. J.D. Power gave the 2020 model year a 91 out of 100 for quality and reliability, and other model years aren't far behind. Lexus RX Customer Complaints and Recalls LexusNo car is perfect, though. Lexus might have a legendary reputation to uphold, but even the luxurious RX has its faults. According to reports made to the NHTSA and Car Complaints, owners found braking issues, oil leaks from the timing cover gasket, and its low-pressure fuel pump may fail. As far as braking issues go, the NHTSA issued a recall for a damaged o-ring in the brake actuator that affected 16,656 units. There was also a low-pressure fuel pump recall that affected 1,525,742 units across the majority of Toyota's and Lexus' lineup from 2017 to 2020. 2021 Lexus RX Luxurious Interior Amenities LexusNot only is the RX stylish on the outside and reliable underneath, it's comfortable and luxurious inside. This isn't the brand's flagship model — it's a two-row SUV that competes with the BMW X5 and Mercedes-Benz GLE-Class. Therefore, the RX needs a classy cabin to keep up. Some of this model's standard features include automatic dual-zone climate control, rain-sensing windshield wipers, an eight-inch touchscreen infotainment system, a 9-speaker premium audio system, and more. The 2021 model year was also available with some great options, like heated and ventilated front seats, a panoramic moonroof, parking assist, a 15-speaker Mark Levinson sound system, and more. Other Used Luxury SUVs for Under $35k 2020 Cadillac Escalade CadillacEven though we prefer the Lexus RX, we know there are some buyers who need something larger. In that case, it doesn't get much better than the Cadillac Escalade. These full-size body-on-frame SUVs are perfect for anyone who needs an abundance of interior space and comfort features. The 2020 model year is the last year of its fourth generation. It's old enough to have depreciated under $35k (base model), but still feels modern inside. Some luxury features include a 16-speaker Bose sound system, a hands-free liftgate, surround vision, and more. 2020 BMW X5 BMWThe 2020 BMW X5 is another option for those on a $35k budget, since KBB's data shows both RWD and AWD models available within our price range. Both drivetrains are connected to a 3.0-liter turbocharged inline-6 that makes 335 horsepower. The most powerful version uses a 4.4-liter twin-turbo V8, but those are still too expensive for this article. That said, even the more basic versions are worth checking out. They can have a heated steering wheel, heated front and second-row seats, lane departure warning, and more. Buyers Have Options, but we Choose the RX LexusWhen looking for a luxury SUV for under $35,000, it's easy to get caught up in all the choices available. There are tons of used luxury SUVs at this price point, so how do you know what to choose? We broke it down into a few categories that ultimately culminated in one option: the Lexus RX. Those that fall under the $35k price range aren't too old yet, so they still feel modern. Examples in good condition and those that have been taken care of should last for many years to come, too. If size isn't an issue, then consider the Cadillac Escalade, and if you don't care about reliability, then the BMW X5 is always around.