UPDATE: 2026/08/31 11:05 EST BY BELINDA ANDERSON
BMW’s Smallest Sports Car Is A Future Collectible
We’ve added a section detailing one of BMW’s most iconic compact cars – production may have just ceased, but here’s why (and how) it’s likely to hold onto its value in years to come.
Over the last two decades or so, the Teutonic Trio (Germany’s Audi, BMW, and Mercedes-Benz) proved that a large vehicle does not need to dictate premium execution. Today, in 2026, a small BMW car represents more than a strategic entry point, but serves as a highly calculated means to capture buyers. If you want a more affordable BMW that can still exhibit some dynamic traits on a back road, the Bavarian automaker caters to the US market in a unique way.
The information was correct at the time of writing. The base MSRP (manufacturer’s suggested retail price), where mentioned, excludes destination fees and other costs. Brands reserve the right to change prices without notice. Where an image of a specific model is unavailable, one from the range is used as a representation.
The Smallest SUV: BMW X1
2026 BMW X1 xDrive28i
2026 BMW X1 driving front 3/4
Serving as the starting point of the brand’s utility lineup, the BMW X1 xDrive28i delivers a highly pragmatic, tech-forward driving experience. The entry-level penalty box era has effectively been culled with this model. If you are cross-shopping for a small BMW car, this crossover presents good value in the premium subcompact sector. Under the hood, a heavily revised 2.0-liter turbocharged four-cylinder engine generates 241 horsepower and 295 lb-ft of torque. Power routes through a seven-speed dual-clutch transmission to a standard all-wheel-drive system.
Inside, the cabin is dominated by the sweeping Curved Display running the latest iDrive operating system. Cargo volume and rear-seat legroom are generous for its footprint. With a starting MSRP of $43,200, it nails the luxury subcompact brief. Notably absent from this North American portfolio is a dedicated BMW small electric car. If you want a small(er) electric SUV other than the iX, the iX3 is the one to go for in the US, but it will set you back a whopping $61,500. The heavily updated BMW X1 will be revealed in the near future.
2026 BMW X1 M35i
2026 BMW X1 M35i front 3/4BMW2026 BMW X1 M35i rear 3/4BMW
For those who find the base X1 too sterile, the M35i variant injects the M Performance ethos into this practical shell. Engineers massaged the 2.0L turbocharged mill to extract a potent 312 hp while maintaining 295 lb-ft. The result is a 0–60 mph dash of 5.2 seconds. While not an outright M car, it bridges the gap to a full-fledged ‘M’ SUV with tangible mechanical upgrades, including an adaptive M suspension system, larger M Sport brakes, and aggressive transmission calibration.
The exterior visuals are distinctly sharper than the X1 xDrive28i, featuring quad exhaust tailpipes and larger air intakes designed to feed the heavily stressed four-cylinder powerplant. However, this performance tax pushes the starting price to $52,400. It is a stiffly sprung, hyper-reactive crossover that sacrifices some daily compliance in exchange for corner-carving capability.
The Smallest Coupe SUV: BMW X2
2026 BMW X2 xDrive28i Coupe SUV
2026 BMW X2 M35i xDrive driving front 3/4BMW
The BMW X2 abandons its previous hatchback proportions in favor of a fastback roofline that mimics its larger X4 and X6 siblings. Mechanically, the X2 xDrive28i is a carbon copy of the X1, utilizing the same 241-hp turbocharged engine and seven-speed dual-clutch transmission. However, it trades outright practicality for aesthetic vanity. If your goal is acquiring a BMW small coupe aesthetic but with crossover ground clearance, this model delivers precisely that. We’ll have to see to what degree the new model continues this trend.
The plunging rear roofline inherently compromises rear headroom and slightly truncates overall cargo capacity. But in exchange, buyers receive a much more polarizing, extroverted exterior design featuring an illuminated kidney grille and highly sculpted character lines. The driving dynamics have also been tweaked ever so slightly to give the X2 its own driving character over the X1. Priced from $44,700, the X2 xDrive28i is a purely emotional purchase for consumers who want a striking, non-traditional silhouette.
2026 BMW X2 M35i Coupe SUV
2024 – 2026 BMW X2 exteriorBMW2024 – 2026 BMW X2 exteriorBMW
Taking the extroverted styling of the standard model to the extreme, the BMW X2 M35i Coupe SUV is a statement vehicle. Armed with the identical 312-hp turbocharged four-cylinder engine found in the X1 M35i, it rockets forward with surprising ferocity, delivering sharp throttle response and a manufactured but entertaining exhaust note through its prominent quad tailpipes. If you want this SUV for a comfortable ride, it perhaps won’t meet your needs. This variant features standard adaptive suspension tuning that is remarkably firm.
The visual treatment is borderline extreme, relying on blacked-out Shadowline trim, large multi-spoke wheels, and an oversized rear spoiler that disrupts the sloping roofline. Carrying a starting MSRP of $53,900, and easily cresting $60,000 with options, the X2 M35i is arguably one of the most niche vehicles on the US market today, and the closest thing to an American M hot hatch.
The Gran Coupe Lifestyle: BMW 2 Series
2026 BMW 228 Gran Coupe
2025 – 2026 BMW 2 Series Gran Coupe exteriorBMW
Despite its nomenclature, the 2 Series Gran Coupe is a subcompact sedan designed to battle the Mercedes-Benz CLA. For 2026, the standard 228 Gran Coupe utilizes a familiar 241-hp turbocharged four-cylinder engine. It is available in both a front-wheel-drive configuration and the all-weather-capable xDrive variant. The driving experience is competent rather than exhilarating, and the transverse engine layout means it lacks the legendary rear-wheel drive balance historically associated with the brand’s core models. And it’s an entry-level car we absolutely loved driving.
But the 228 Gran Coupe excels as a premium urban commuter. It offers a well-insulated, tech-laden cabin that features high-quality materials, ambient lighting, and a sleek four-door coupe profile. Rear-passenger space is on the tight side, but this is a direct consequence of the sloping roofline. Starting at $40,000 for the front-wheel drive and $42,000 for the xDrive, it delivers the necessary badge prestige and modern digital integration to attract a younger demographic into the BMW ecosystem.
“For the first time since the original 1 Series Coupe launched in 2008, we’d be happy to drive an entry-level BMW.”
– Jared Rosenholtz, Former Editor-at-Large, CarBuzz
2026 BMW M235 xDrive Gran Coupe
2026 BMW M235 Gran Coupe front 3/4Jared Rosenholtz/CarBuzz/Valnet2026 BMW M235 Gran Coupe rear 3/4Jared Rosenholtz/CarBuzz/Valnet
The M235 xDrive Gran Coupe serves as the performance ceiling for this front-drive-based architecture. Upgraded to deliver 312 hp and 295 lb-ft, this compact sedan utilizes a standard all-wheel-drive system to effectively put the power down. A limited-slip differential on the front axle fights understeer, which helps the car to claw its way around tight apexes. Acceleration is blistering, too, executing the 0–60 mph sprint in 4.7 seconds.
The chassis is very stiff and features an M Sport suspension setup that relays road imperfections directly to the driver’s spine. Visually, the car separates itself with aggressive lower fascias, enlarged air intakes, and M badging scattered across the exterior and interior. Priced at $50,000, it is a real player in the hyper-aggressive compact sport sedan market.
The Sexy 2 Series Coupe
2026 BMW 230i Coupe
2026 BMW M240i xDrive front 3/4BMW
Here is where the authentic Bavarian DNA we’ve come to know and love is preserved. Unlike the Gran Coupe, the 2 Series Coupe rides on a shortened CLAR platform, securing the legendary longitudinal engine layout and rear-wheel drive architecture. The 2026 230i utilizes a 2.0L turbocharged four-cylinder producing 255 hp and 295 lb-ft. Buyers can specify the rear-driven model for maximum steering purity or opt for the xDrive system for the best possible traction.
Paired with a brilliantly calibrated ZF eight-speed automatic transmission, the 230i offers near-perfect 50:50 weight distribution. It delivers sublime, neutral handling characteristics and a compliant ride that shames its stiffer front-drive-based siblings. With a starting price of $42,200, the 230i Coupe is a rational sports car if you’re in the market for a compact German sports car. It offers enough performance for a drive up a canyon without the punishing running costs.
2026 BMW M240i
2026 BMW M240i xDrive front 3/4BMW2026 BMW M240i xDrive driving rear 3/4BMW
For those who demand raw, effortless power, the M240i shoehorns the magnificent B58 3.0L turbocharged inline-six engine into the compact coupe chassis. Generating 382 hp and 369 lb-ft, this powertrain borders on absolute overkill for the segment. Available in rear-wheel drive and the grip-heavy xDrive configuration, the M240i is a bona fide straight-line weapon, rocketing to 60 mph in a scant 4.1 seconds. The inline-six pulls toward the redline with a relentless push and a refined mechanical howl that four-cylinder engines simply cannot replicate.
To cope with the immense power, the chassis has been stiffened, while larger brakes and standard adaptive M suspension have also been added. Despite the hardcore hardware, it remains an exceptional grand tourer, capable of swallowing highway miles in profound comfort. Priced from $53,600, it dishes up a nice dose of brutal acceleration and daily drivability and comfort. And with this healthy offering on a golden plate, is the M2 even needed for the streets? And beyond that, is the M240i a worthy successor to the OG, the M235i?
The M Beasts From Bavaria
2027 M2 Coupe
2027 BMW M2
Model
M2 Coupe
M2 M xDrive Coupe
Engine
3.0L 6-Cylinder Turbo
Horsepower | Torque
473 hp | 443 lb-ft
Transmission
8-Speed Auto| 6-Speed Manual
Drivetrain
RWD
AWD
0-60 mph
4.1 sec
3.6 sec
Top speed
155 mph
As the undisputed apex predator of the compact lineup, the 2027 BMW M2 Coupe is a vehemently capable track weapon. It borrows the S58 3.0L twin-turbocharged inline-six directly from the larger M3 and M4, and this engine has been tuned to deliver a staggering 473 hp. For the first time, the 2027 iteration introduces an available M xDrive all-wheel drive system. This will surely alter the car’s character, transforming it from a tail-happy hooligan into a ruthless, grippy supercar killer that shaves 0–60 mph times down to 3.6 seconds, according to BMW.
The exterior is defined by wide fenders, functional aerodynamic cladding, and massive staggered wheels. It is a visually intimidating and completely unapologetic sports car. And on the inside, the available bolstered carbon bucket seats lock the driver in place under high lateral loads. Starting at $73,600 for the xDrive model, the M2 is loud, stiff, and completely uncompromised. It underlines why the “less is more” approach always works.
2027 BMW M2 Pricing:
- M2 Coupe: $69,900
- M2 M xDrive Coupe: $73,600
“The BMW M2 feels like the last of a dying breed; a breed that needs to be preserved at all costs.”
– Jared Rosenholtz, Former Editor-at-Large, CarBuzz
BMW’s Most Iconic Small Sports Car Is A Future Collector’s Item
2026 BMW Z4
2026 BMW Z4 Roadster
Model
sDrive 30i
M40i
Engine
2.0L Inline-4
3.0-liter Inline-6
Horsepower | Torque
255 hp | 295 lb-ft
382 hp | 369 lb-ft
Transmission
8-speed Auto (6-Speed manual, M40i only)
Drivetrain
RWD
0-60 mph
5.2 sec
3.9 sec (AT) | 4.2 sec (MT)
Top speed
155 mph
It may have been discontinued this year, but since 2026 was it’s final curtain call, it’s worth adding to the list, whether you’ve managed to snag one as new or are looking for one on the used-car market. The BMW Z4 Roadster is a soft-top with two engine options and the more potent of the two allows you to select a manual transmission – something which is exceedingly rare, these days.
Pricing as new started over $55,000, and looking at price trends for used models, these sports cars tend to hold their value really well. Even older models cost around the $50k, and with BMW having released a Final Edition as a swansong earlier this year, those examples are likely to fetch top dollar in a couple of years from now.
Source: BMW
