Ten Guilt-Free Luxury Cars

Courtesy Lexus

Lexus RX 400 hybrid

Believe it or not, people who drive luxury cars have feelings too. And many of them are just as unhappy with the high gas prices as everyone else.

"They don't want to be seen as avaricious, ostentatious and self-centered," says Milton Pedraza, CEO of the Luxury Institute, a research group that focuses on the spending habits and trends of the wealthy. "Eighty-five percent of people worth $5 million or more are self-made [millionaires], and they are very frugal; that's how they got where they are. They are very empathetic to the effects of energy prices on everyday people."

For those who want to drive a high-performance luxury car loaded with high-tech features, and still be as environmentally friendly as possible, there are options. From sedans to SUVs, automakers offer a few cars that are every bit as stylish and luxurious as their brethren but don't necessarily guzzle as much gas. However, the pickings are slim.

Behind the Numbers

With luxury auto sales down nearly 13% (overall vehicle sales are down 8%), automakers are under pressure to offer environmentally friendly, high-performance vehicles that will hold their value. A greater potential for maintaining value equals a lower monthly lease payment and, most likely, a decreased sense that driving such a car is a prodigal expense.

To find the most guilt-free luxury cars, we first looked at vehicles priced $40,000 to $90,000 and used Kelly Blue Book to measure each vehicle's projected worth at the end of a three-year lease or purchase. A residual value of 50% to 55% for a three-year period is strong, says Eric Ibara, director of market valuation at Kelly Blue Book, but the number varies by segment. We then used Environmental Protection Agency (EPA) mpg estimates to narrow down the list.

Two of the vehicles making the list are a clean diesel-powered sedan--the Mercedes-Benz E 320 Blue Tec--and a hybrid SUV--the Lexus RX 400.

Courtesy Jaguar

Jaguar XF

The E 320 gets 26 mpg on a 3.9-liter V6 diesel engine. Although diesel currently averages $4.79 a gallon nationwide, today's diesels burn cleaner and, overall, are more fuel efficient than comparable gas-powered vehicles. The E320, which starts at $52,675 and comes with a multiple-airbag safety system, roll-over sensor and night security illumination, has a high residual value of 51%. That means lower lease payments and that purchasers can expect the vehicle to retain at least half of its value after the first three years of ownership.

The Lexus RX 400 hybrid SUV gets an EPA-combined 25 mpg and is equipped with a 3.3-liter V6 engine that alternates between premium gasoline ($4.48 nationwide average per gallon) and an electric battery. Like the Mercedes E 320, the RX 400 has a high residual value of 54%.

Rounding out the top five are the Mercedes-Benz GL Class (55% residual value and 18 mpg), the Jaguar XF (52%, 19 mpg) and the Lexus IS F, the only car on the list that is not powered with a more efficient V6 engine. The IS F is equipped with a V8 that gets 18 mpg, but the car has the highest residual value on the list at 59%. Buyers who want the high-performance of a V8 will sacrifice fuel economy, but the car does hold its value, meaning a better payoff down the line when it comes time to upgrade yet again.

Also making the list are the Lexus LS 460 (50%, 19 mpg); Infiniti M35 (48%, 19 mpg); BMW 5 Series (47%, 21 mpg), Audi A6 (47%, 20 mpg) and Mercedes-Benz M Class (47%, 21 mpg).

Less Guilt Equals Fewer Choices

Unfortunately, when it comes to luxury cars low on guilt, the choices are slim. Most luxury cars offer fuel economy in the low- to mid-teens in terms of mpg and are powered by big V8 and V10 engines.

What some luxury cars lack in fuel economy, however, they make up for in safety. The Infiniti M35, for example, features some of the most up-to-date technology designed to help prevent accidents. When driving on the highway, a computer keeps the vehicle from drifting out of its lane, and the xenon headlights improve road visibility in bad-weather conditions.

Courtesy Audi

Audi A6

Features that eliminate the stress of driving are offered in many of these vehicles as well. The BMW 5-Series has an active cruise control that allows the driver to stop the vehicle completely without losing the cruise-control setting. A touch of the pedal sends the car accelerating back up to the desired speed.

It isn't all about the bells and whistles though. If consumers can get a hybrid version that offers the same experience as a comparable, traditional gas-powered luxury vehicle, then they will seriously consider it, says Alexander Edwards, automotive division president of the market research firm Strategic Vision. "It's an attractive option if they don't have to give up anything."

Strategic Vision polled luxury-car owners six months ago and found that things like reliability, performance, image, prestige, workmanship, thoughtful engineering, handling and interior quality all rated in the top 13 of people's priorities. And even though it's technically not a luxury car, the vehicle that fulfills many of these qualities is the hot-selling Toyota Prius, Edwards notes.

"The Prius looks innovative; it has a thoughtful interior. The Prius is acceptable to luxury buyers. This is a car they can show off--it fulfills a luxury requirement for image."

So perhaps when it comes to lowering the guilt of driving a luxury car, what it all comes down to is the perception of luxury rather than the auto industry's definition of it. That's certainly the case for the Luxury Institute's Pedraza, who is considering the Prius and the MINI Cooper to replace BMW No. 2 in his garage--but he's keeping the BMW 750i for his wife and young child. The small, fuel-efficient vehicle is for him.

"Let's be practical about this," he says. "This is the car I will drive."