Cadillac has never been a car brand that compromised luxury for affordability (so long as we forget most of the 1980s and 90s), and their premium price has always reflected that. Nobody would ever accuse the Cadillac CTS of being a “cheap” car, with a starting price around $40,000. Still, it was one of the more affordable full-size luxury cars on the market, all things considered.

We say “was,” because for 2014 the Cadillac CTS has gotten bigger in more than one way. In addition to growing in both length and interior room, the 2014 Cadillac CTS will carry a starting price tag of $46,025, including a $925 destination fee. So a pricey car got pricier, but GM is also aiming for bigger fish in the luxury pond.

Keep in mind that $46,025 price is for the base-model Cadillac with a 2.0 liter turbocharged four-cylinder engine. If you want to step up to the 420 horsepower twin-turbo V6 VSport model, prepare to shell out $59,995. Granted, GM has made the 2014 Cadillac five-inches longer, with more interior room and sportier aspirations, but that is still a 15% price jump from one year to the next.

But that’s because Cadillac is no longer aiming to compete with cars like the Chrysler 300 or BMW 3-series. Rather, the CTS is now striving to take on cars like the BMW 528i and Mercedes E350, the next step up in full-size luxury cars. Compared to those, the Cadillac is a couple of grand cheaper, though still not cheap. The CTS looks like a great car, but can it compete with Germany’s best?