The Cadillac CT4 isn’t the loudest car in the showroom. It’s not electric, doesn’t have 600 horsepower, and won’t make Instagram influencers foam at the mouth. But it is — and this is important — the cheapest new Cadillac you can buy in 2025. Starting at $35,600 for the 2026 model, it’s not just the gateway to the Cadillac range, it’s a reminder that luxury can still come in sedan form. Especially one that doesn’t cost the GDP of a small island.
The CT4 sits just below the XT4 SUV, which starts at $40,795 for the 2025 model. Despite the price, the CT4 doesn’t feel like a rental spec. Not completely, anyway.
Design: Baby CTS With A Bit Of Swagger
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Cadillac
Cadillac
The CT4 is of course the cheapest Cadillac model and has a compact stance and sharp lines that mimic the bigger CT5. It’s got that familiar Cadillac look — angular LED headlights, a slim grille, and the sort of rear-end design that looks best disappearing rapidly in someone else’s rearview mirror.
Standard 17-inch alloys don’t scream opulence, but you can bump those to 18s or 19s, and the Premium Luxury and Sport trims start to look properly upscale. The top-spec CT4-V even gets quad pipes and more aggressive bodywork, but that’s heading toward $47k territory — and not what we’re here to talk about.
Engine And Performance: Rear-Wheel Drive Lives On
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Base CT4s come with a 2.0-liter turbocharged inline-four, sending 237 horsepower and 258 lb-ft of torque to the rear wheels via an 8-speed automatic. Zero to 60 mph happens in a perfectly respectable 6.2 seconds — not neck-snapping, but enough to remind you that you didn’t buy a beige Camry.
There’s optional all-wheel drive, but rear-wheel drive is standard — and that matters. It’s what gives the CT4 its edge in the corners, especially when stacked up against front-driven rivals like the Audi A3 or Mercedes CLA.
Fancy a bit more poke? The 2.7-liter turbo in the Premium Luxury trim delivers 310 hp and 350 lb-ft, and turns the CT4 into a proper back-road bruiser. Unfortunately, this derivative costs closer to $45k. Still, even in base spec, the chassis is surprisingly composed, with sharp steering and decent body control — something Cadillac’s been getting right since the ATS.
Trim Levels: Choose Your Fighter
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The CT4 is available in three trims:
- Luxury: The entry point, with cloth/leatherette upholstery, 17-inch wheels, and basic driver aids.
- Premium Luxury: Adds leather, adaptive cruise, lane-keep assist, blind-spot monitoring, and the 2.7-liter engine option.
- Sport: Brings gloss black accents, performance grille, sport pedals, and optional MagneRide suspension.
You can also spec Super Cruise, Cadillac’s hands-free driver assist system, on Premium Luxury models and up.
Running Costs And Ownership
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Fuel economy is merely average and not close to the top of the class. The 2.0-liter manages up to 22/32/26 mpg city/highway/combined with RWD, or 21/31/25 mpg with AWD. By comparison, BMW’s 2 Series Gran Coupe can hit 30 mpg combined with AWD.
Insurance isn’t horrendous either, sitting below the average for a luxury sedan in the U.S., and depreciation isn’t as catastrophic as you’d think. Cadillac’s reputation may not have the badge cachet of BMW or Mercedes, but it’s improving, especially with Gen Z and younger buyers.
Interior: A Few Rough Edges, But Logical Controls
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The CT4’s interior walks the line between premium and practical — think business class on a regional flight. You get a clean, symmetrical dashboard with tactile switches and proper climate knobs, rather than the dreaded touch sliders found in rivals. An 8-inch touchscreen is standard, running wireless Apple CarPlay and Android Auto, while the driver gets a clear digital display without any gimmicks. For a cheap Cadillac, it still feels thoughtfully designed.
In base trim, the cabin has several soft-touch plastics and leatherette, although there are also some cheaper materials in evidence. Step up to Premium Luxury or Sport and you’ll find real leather, ambient lighting, and an optional Bose 14-speaker audio system that does a decent job masking any remaining road noise.
There’s decent space for front passengers and just enough rear legroom for short hops — though anyone over six foot will want to call shotgun. It’s not lavish, but it is logical — and when compared to other affordable Cadillac models in years past, it’s arguably more refined.
Lease Deals And Real-World Price
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Plenty of U.S. dealers are offering lease deals from $479/month with around $2,500 down for base CT4s. Stretching to a Premium Luxury might cost $530–560/month depending on location and time of year. For those looking to finance, Cadillac is running low APR offers across most of its range.
This all puts the CT4 well ahead of the XT4, which starts at $40,795 and often leases around $667/month. And unlike the XT4, which feels like it was made by committee, the CT4 still feels like a car made by people who care about how it drives.
How It Compares
Against rivals like the Audi A3, Mercedes CLA, and BMW 2 Series Gran Coupe, the CT4 offers more space, more power in higher trims, and a proper rear-drive layout. It doesn’t quite match them for cabin quality or badge snobbery, but it undercuts them on price and, crucially, avoids feeling like a punishment car.
The Genesis G70 is a closer rival in feel and layout, and may offer more for the money in higher specs. But for entry-level luxury under $35k, the CT4 is holding its ground.
Final Verdict
The Cadillac CT4 is more than just the cheapest Cadillac. It’s a rare case of an entry-level luxury car that still feels fun, usable, and — whisper it — worth the money. While the rest of the segment slowly dies off or turns into bland electric crossovers, the CT4 sticks to its guns: internal combustion and rear-wheel drive.
If this is your first foray into luxury cars — or your first proper car after something soul-sapping like a Corolla — the CT4 won’t disappoint. It’s Cadillac’s baby, yes, but it doesn’t suck on arrival.
About the author
Karl Furlong
Senior Editor, Autoblog