2025 Cadillac XT4

The 2025 XT4 is Cadillac's entry-level luxury SUV. That means it's the least expensive SUV in the lineup as well as the smallest. For its size, though, it's pretty roomy. And last year, Cadillac gave it some upgrades such as a neat-looking 33-inch widescreen that incorporates both the instrument cluster and infotainment screen into a single unit. Unfortunately, the XT4 is an older design and suffers from some refinement-related drawbacks. The engine can sound noisy during hard acceleration, for example, and the ride quality isn't as smooth as you likely expect of a Cadillac.

For 2025, Cadillac narrowed the number of XT4 trims from three to two, shaving the Luxury trim from the bottom of the lineup and making the Premium Luxury trim the new entry point into Cadillac SUVs. The result is a highly equipped entry-level XT4 that offers a huge array of standard driver aids like adaptive cruise control and a surround-view monitor. We like this change except for one serious oversight: It lacks heated seats. To get that most basic luxury feature you'll have to pony up for the Cold Weather package.

The abundance of subcompact luxury SUVs makes for a highly competitive market and should give you pause before committing to an XT4, which is one of the oldest offerings in the segment. Other top options to consider include the BMW X1, Mercedes-Benz GLA and GLB, and Volvo XC40. For a less expensive option, consider the Buick Encore GX. It packs less power than the XT4 but can be had with pretty much the same amount of features and luxury as the Cadillac.

With the reduction to only two trims this year, the choice becomes easy: The Premium Luxury trim offers the nearly full array of the XT4's standard and available features. Of the available options, the Cold Weather and Comfort and Convenience packages are well worth getting.