2026 Best Compact Luxury Car: BMW 4 Series/i4

AutoTrader’s jury of over 20 experts has voted the BMW 4 Series as the winner in the Best Compact Luxury Car category for 2026. This award also includes the BMW i4 electric sedan, which impressed our reviewers with its utility, agile handling, and styling. The BMW 4 Series gasoline lineup covers a lot of ground with its two available body styles – convertible and two-door coupe. There’s also a choice of turbocharged four-cylinder or turbocharged inline six-cylinder power, culminating in the red-hot and razor-sharp M4 Competition with its explosive 523-hp 3.0L six-cylinder.

But shoppers don’t need to look to M variants of the 4 Series to experience a classic BMW drive. The base 430i xDrive model runs with a smooth and surprisingly efficient 255-hp turbo four-cylinder that punches well above its weight – it’s one of the best 2.0L turbo engines on the market. This sentiment also applies to the silken 386-hp 3.0L straight-six found in the pricier 440i xDrive that is arguably one of the finest engines ever fashioned by mankind. AutoTrader contributor Sami Haj-Assaad said, “When it comes to picking out a perfectly matched drivetrain, from the engine to the transmission to the all-wheel-drive system, this BMW package is hard to beat. It just simply performs with no hesitation or hiccups. It’s also variable, with a selection of drive modes to customize your experience.”

Both engines incorporate a 48-volt mild-hybrid system and are paired with a worthy eight-speed ZF automatic transmission. This mechanical expertise and refinement carry over to the car’s underpinnings, delivering a smooth and controlled ride that comes alive on a winding back road. On the highway, the 4 Series’ Autobahn ethos translates to a calm confidence and unerring path control.

The 4 Series’ cabin is a classy affair built to a high standard, featuring artistic ambient lighting along with some of the nicest front seats you’ll ever have the pleasure of sliding your tush into. We would like more physical controls in the cabin, but BMW’s voice recognition system works well and the marque’s long-serving iDrive interface, with its large twist/push/nudge rotary controller, allows access to most infotainment and climate control functions without having to poke away at the 14.9-inch central touchscreen.

Rear seat room in the coupe is tight but tolerable for two adults. What impresses is this two-door’s capacious 440-L trunk.

The electric i4 comes only in four-door Gran Coupe guise, and it’s a handsome piece indeed. Counter to other German automakers, BMW’s electrified stable offers essentially the same vehicle looks inside and out as gas counterparts. The i4’s roomy cargo hold is a big selling point; 470 L with the rear seats in place, which can be expanded to 1,290 L by folding the split rear seats.

Being equipped with the latest generation of the BMW iDrive System 8.5, the i4 bristles with the marque’s latest technology, yet also benefits from iDrive’s ergonomic sensibility. Less distraction means you can enjoy this EV’s pace and engaging dynamics even more. AutoTrader Associate Editor Sébastien Bell noted, “As standard, the i4 comes with a rear air suspension and does a good job of balancing comfort with performance.”

Shoppers get a choice of three electric drivetrain configurations for 2026: the single-motor rear-drive i4 eDrive40 Gran Coupe with 335 hp, the dual-motor all-wheel-drive xDrive 40 Gran Coupe with 396 hp, and top dog M60 (previously called the M50) that gets a power bump, bringing the total to 592 hp.

Whether you go for the gas or EV models, the BMW 4 Series offers a sublime blend of power, performance, efficiency, and luxury, all paired with that intangible sense of dynamic harmony that the best BMWs deliver. For going above and beyond what’s expected, the BMW 4 Series lineup has impressed the AutoTrader experts and earned its win.