2025 Cadillac XT4

The 2025 Cadillac XT4 competes with subcompact luxury SUVs from Audi, BMW, Mercedes-Benz, Lexus, and others — but it’s a bit bigger than most, and roomier inside. There’s also plenty of standard equipment and features. And for 2025, a hugely expanded set of advanced safety technologies. While the XT4 makes its case for that spot in your driveway, there are several attractive alternatives.

We’ve logged hundreds of hours driving and evaluating this generation of luxury subcompact SUVs, including the Cadillac XT4.

The former entry-level Luxury trim is deleted for 2025, making the previously midrange Premium Luxury the new starting point. With this change, once-optional safety tech becomes standard in all XT4 models, including adaptive cruise control, automatic speed limit assistance, lane-keeping assistance with departure warning, pedestrian and cyclist alerts, traffic sign recognition, and a 360-degree camera system.

The 2025 Cadillac XT4 is priced right in the middle of its luxury subcompact SUV class, about the same as the BMW X1 and Volvo XC40 or a couple of thousand above the Audi Q3 and Lincoln Corsair. The Mercedes-Benz GLB is about $5,000 more expensive, but also offers an optional third row. The Lexus UX is about $5,000 less expensive and comes with a hybrid drivetrain as standard.

Before buying a new Cadillac XT4 small luxury SUV, check the Kelley Blue Book Fair Purchase Price to know what you should be paying. The XT4’s resale values are average for the class. Resale value is important to keep in mind, because the more you recoup when you sell your vehicle, the more you have to roll into the next one if you choose.

The XT4’s turbocharged engine seems fairly strong in theory, but in real-world use, it often comes up a bit short. The quoted standstill-to-60 mph time of eight seconds is adequate, but not quick. We’ve found that the harder this engine is pushed, the less it sounds like something that belongs in a luxury SUV. Mix in noticeable wind and road noise at higher speeds, and the XT4 wouldn’t be our first choice for long road trips.

The XT4’s ride quality might have ruled it out as a comfortable road-tripper anyway — there’s none of the “floating sofa” feel of Cadillacs of yore here. Instead, the XT4’s ride is so stiff as to be brittle and jittery.

It’s not all rough edges with the XT4’s driving experience, however. The high seating position makes for great outward sight lines, and its small size makes it a breeze to park, even in the city.

Fuel Economy

The 2025 XT4 gets 26 mpg combined (24 city/29 hwy) with front-wheel drive (FWD), or 25 mpg combined (23 city/28 hwy) with all-wheel drive (AWD). That compares well with its competition. For example, the Audi Q3 returns 25 mpg combined, while the BMW X1 and Mercedes-Benz GLB both achieve 28 mpg combined. The Lexus UX, being a hybrid, enjoys significantly better fuel economy than the others at 43 mpg combined.

Although not as impressive as the 55-inch dash-spanning display in the new Escalade IQ, the XT4’s dashboard is still high-tech, with a large driver display and central infotainment screen in a single large panel. Opt for the Premium trim for aluminum accents or the Sport model for splashes of carbon fiber.

The XT4 has some thoughtful touches for daily life — like keeping the windows, sunroof, climate control, and audio system all powered for 10 minutes after the vehicle is switched off. But other aspects of the XT4’s interior could use an upgrade. We’d especially like to see fewer hard plastics, even at this relatively accessible price point.

However, buyers seeking a spacious subcompact luxury SUV would be hard-pressed to find more than the 39.5 inches of second-row legroom in the XT4. The Audi Q3 is one of the roomier alternatives and still comes up 3.4 inches short, at 36.1 inches. The BMW X1 is a bit closer with 37 inches. Even the Mercedes-Benz GLB, which offers an optional third row, has just 38.1 inches of second-row legroom.

As for cargo space, the XT4 has 22.5 cubic feet behind the second row or 48.9 cubic feet with the rear seats folded flat. Those figures are just about level with the Audi Q3 and BMW X1 but lag behind the GLB’s 27/62 cubic feet.

The 2025 Cadillac XT4’s exterior sees no changes from last year, which brought upgraded LED headlights and a new grille. The XT4’s look makes it clear that it’s related to both the Lyriq EV and the patriarch of the Cadillac range, the Escalade.

Despite being somewhat larger than most of its class, the XT4 is still a small SUV — just three inches longer in wheelbase and overall length than the BMW X1, for example.

Wireless phone integration

All XT4s get standard wireless Apple CarPlay and Android Auto.

Sport trim

The XT4 Sport receives an upgraded suspension with adaptive capabilities that expands the XT4’s comfort and performance.

Active safety features

For 2025, all XT4s come with an even more comprehensive set of active and advanced safety features than before. Automatic braking in a range of situations, pedestrian and cyclist detection, adaptive cruise control, a surround-view camera system, and much more are all standard.

AKG audio system

This Austrian audio company has a global reputation for quality. The XT4’s optional 14-speaker AKG audio system is worth the extra cash for those with a taste for high-end sound.

Comfortable front seats

The XT4’s second row is among the most spacious in its class, but the front row is remarkably comfortable as well. If you prefer a bit more bolstering to the seats, opt for the Sport model.

Available all-wheel drive

Both the Premium Luxury and Sport models are available with all-wheel drive, giving the XT4 greater year-round stability whatever the weather or surface conditions.

Whether front-wheel or all-wheel drive is in the mix, it’s the same 2.0-liter turbocharged 4-cylinder engine in all 2025 XT4 models. Peak output is 235 horsepower and 258 lb-ft of torque. All 2025 XT4s use a 9-speed automatic transmission.

4-Year/50,000-Mile Warranty

Cadillac’s new vehicle warranty is typical for the luxury sector, lasting four years or 50,000 miles, whichever comes first. The powertrain warranty is a little better than average, though, providing coverage for six years or 70,000 miles.

Safety

The XT4 hasn’t been safety-rated by any third-party agencies. However, for 2025, it features even more advanced safety technology features as standard, including adaptive cruise control, automatic speed limit assistance, lane-keeping assistance with departure warning, a surround-view camera system, pedestrian and cyclist detection, traffic sign recognition, automatic emergency braking, and more.