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Cadillac is associated with luxury, but sweet spots in the brand’s offerings count as bargains, too. Even its popular SUV lineup, noted for striking styling and pricey upgrades, offers incredible value. All it takes is savvy shopping. The Cadillac XT4, at most trim levels, hits the nail on the head for an affordable luxury SUV. Here’s why.

Cadillac XT4: Affordable luxury SUV

2024 Cadillac XT4 exterior front view
2024 Cadillac XT4 | Cadillac

Luxury SUVs rarely occupy the price range the Cadillac XT4 does — certainly not at this level of quality. The hint as to what the XT4 is all about is in the name of the base model: Luxury. That’s the entry level, and at $37,490 MSRP, it’s notably affordable for the high-end features it includes.

Riders enjoy high-quality synthetic leather upholstery and an 8.0-inch touchscreen infotainment system with Apple CarPlay and Android Auto integration. The seven-speaker audio system provides premium sound, if not a true audiophile-level experience.

The $41,390 Premium Luxury trim adds ambient lighting, illuminated door handles, and an auto-dimming rearview mirror. It also has additional driver’s aids, such as front park assist, lane-change alerts, and rear cross-traffic warnings.

And finally, there’s the range-topping $41,990 XT4 Sport. This sleek trim removes accents, with fewer chrome pieces creating a stealth-weath look. Front cornering lights add yet another layer of safety and driver-assistance value. Power-adjustable lumbar support and front seatback bolsters bolster the comfort and opulence. 

What features does a luxury SUV under $40,000 have?

2024 Cadillac XT4 dashboard
2024 Cadillac XT4 dashboard | Cadillac

The Cadillac XT4 Sport is enticing, but it’s not the budget champion. If you don’t need those extra features or prefer the chrome-accented aesthetic, you’ll save thousands of dollars.

Even the under-$40,000 Luxury trim includes crucial luxury features by default. Blind-spot monitoring and rear-cross traffic alerts are the most essential advanced safety systems, and Cadillac offers them without add-ons.

Speaking of add-ons: The Luxury trim grants access to a wealth of extras that might be more useful than the full trim upgrade. You might not care for the upgraded seat functionality as much as the roof-mounted cross rails, a towing kit, or all-wheel drive. These upgrades can be added without crossing the $40,000 mark, making for a better affordable luxury SUV experience with only a few conveniences sacrificed.

Is the Cadillac XT4 a true luxury bargain?

Given the current automotive market, where affordability is vanishingly rare, a luxury SUV under $40,000 seems like a miracle. So, thinking it might be too good to be true is understandable. Is the Cadillac XT4 really the best choice, or are you better off spending a bit more?

The XT4 isn’t without drawbacks. Its front-wheel-drive models’ performance leave much be desired, taking 7.5 seconds to accelerate from 0 to 60 mph. And the steering is notably less responsive than other luxury vehicles. That synthetic leather interior, though high-quality, isn’t quite what higher-end models offer, either.

The BMW X3 is the closest quality and price equivalent to the Cadillac XT4. Both earned an 81 overall score from J.D. Power, but the X3 starts at a much higher base price, $47,195. However, it has more responsive steering, better fuel efficiency, and less cabin noise while driving. That, alongside a higher-rated interior comfort experience, might be worth the extra cash. But for shoppers looking for an attractive intersection of price, luxury, and overall quality, the Cadillac XT4 Luxury trim is hard to beat.