2026 GMC Terrain First Drive: Stretching Upmarket

• The Terrain Denali and AT4 skipped the 2025 model year.
• They return for 2026 with more equipment and higher prices.
• The Denali aims for luxury and AT4 has an off-road feel.

What is the 2026 GMC Terrain Denali?

After taking a model year off, the Denali returns with the new Terrain’s revised exterior design, an 11-inch digital instrument cluster, a 15-inch portrait-style infotainment touchscreen with Google Built-In tech, an eight-speed automatic transmission in place of a nine-speed, and a host of new driver assistance features.

Mostly, though, the Denali is known for its additional comfort and convenience features. The Denali and AT4 both come standard with all-wheel drive (a low-end system that has to be engaged via a button on the dash), hill descent control, wireless phone charging, a hands-free power liftgate, dual-zone automatic climate control, a trailer hitch, an eight-way power-adjustable driver’s seat, and a universal garage door opener, among other features.

The Denali goes another step further with 19-inch alloy wheels and available 20-inchers, leather-wrapped ventilated front seats, heated outboard rear seats, memory for the driver’s seat, a power-adjustable front passenger seat, a surround-view camera system and a rear camera mirror.

Terrain Denali road manners

My drive along Jefferson Avenue is pleasant but far from exciting. The turbocharged 1.5-liter four-cylinder offers a modest 175 horsepower and 203 lb-ft of torque. It’s a gruff little engine that sends more noise into the cabin than many rivals and its power delivery is only adequate. GMC quotes a 0-60 mph time of 7.9 seconds, which seems about a half-second quicker than it feels. For a vehicle priced in the $40K range, this isn’t a premium engine. Many competitors offer more power and smoother power delivery. The Terrain Denali delivers decent fuel economy at 25 mpg combined (24 city/26 highway), but the Honda CR-V and Toyota RAV4 beat those numbers by far with their hybrid powertrains.

The eight-speed automatic transmission is an improvement over the old nine-speed. It doesn’t get confused about which gear to pick as often and generally shifts smoothly. However, with the engine’s small displacement and limited power, it does have to change gears often to access the best power.

The Terrain’s best dynamic quality is its steering. It’s direct and has some decent heft. GMC outfits the Terrain Denali with Normal, AWD, Snow, Off-Road and Tow/Haul modes. That means no Sport mode, so the steering doesn’t firm up further and the throttle doesn’t get sharper.

GMC sets the Terrain Denali on a MacPherson strut front suspension, a multilink independent rear suspension and standard 19-inch alloy wheels. Thanks in part to a short wheelbase, the ride gets choppy on the broken bits of pavement on these city and suburban streets. It doesn’t crash over the sharper bumps, though, and is generally quite comfortable, even on the 20-inch wheels installed on my test vehicle. The Terrain has some body lean in sharper corners, but it’s generally well controlled.

What is the 2026 GMC Terrain AT4?

While the Terrain AT4 is the most capable Terrain off-roader yet, it’s also the least capable off-roader in GMC’s stable. The off-road features are minimal, but a few of them are effective. It gets a front skid plate, an engine and transmission underbody shield, a Terrain drive mode, an extra half-inch of ground clearance, a pair of red front recovery hooks and, most importantly, a set of 235/65R17 General Grabber all-terrain tires.

Terrain AT4 road manners

My time in the AT4 involves city driving to Belle Isle and other points of interest in Detroit, as well as a jaunt to the airport. It’s telling that GMC’s drive for its off-roader included no off-roading.

GMC engineers said they tuned the Terrain AT4’s steering and suspension to be sportier than in the other models, but with taller tire sidewalls on smaller wheels, the AT4 feels very similar to the Denali: comfortable and a little choppy over broken pavement. The only major difference is hydraulic bump stops so the AT4 can soften hard impacts that might happen on off-road trails.

The Grabber all-terrain tires provide less on-road grip than the Continental and Michelin all-seasons that come on the 19-inch and 20-inch wheels, but they’ll do their best work in the mud and dirt. These tires proved exceptional at digging in for traction during recent off-road drives of the Honda Passport TrailSport and Ford Expedition Tremor, so they’ll do the job here as well.

However, GMC doesn’t give the tires help in the form of locking center or rear differentials to find traction when a wheel is off the ground or the surfaces differ under different wheels. The AT4 also doesn’t offer forward camera views for off-roading, crawl control, or exotic features like disconnecting sway bars or the raised ride height of an air suspension. The Terrain AT4 will get you to the campsite or the trailhead, but it’s not an off-road hobbyist’s choice. Should you take your Terrain AT4 off-road, however, activating the Terrain mode will act as a one-pedal driving mode to control your speed up and down hills.

Moving on up

When last they saw the light of day for the 2024 model year, the Terrain AT4 cost about $35,000 and the Terrain Denali came in around $38,000. For 2026, those prices are $39,995 and $42,495, respectively.

Some changes justify those prices. The 15-inch touchscreen is one of the best on the market, with a simple command structure and quick reactions. GMC decorates the interior with more soft-touch materials on the door tops, dashboard and center console, and the cabin has good space for rear passengers and a generous 63.5 cubic feet of cargo space with the rear seat folded down. The AT4 and Denali also come with a lot of comfort, convenience and safety equipment.

However, rivals like the Honda CR-V and Toyota RAV4 offer more varied lineups, including hybrids, and better resale values. Add some options to these high-end Terrains and they edge into Acura RDX and Genesis GV70 territory, and those two choices bring more power and luxury. Any of those vehicles is likely a better choice for mundane suburban driving, no matter how pretty the scenery.