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Rob Nestora is a Senior Editor and has been a member of the Cox Automotive Editorial team since 2014 when he started as a content producer.  Since joining the team, he has worked with a long list of prominent automotive experts and influencers and has driven some of the finest vehicles on the planet.  If he’s not working on creating, producing, or editing content, he is likely perusing the vehicle listings and dreaming of cars that far exceed his salary.

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Matt Degen is an author specializing in reviewing cars with the goal of helping you find the best one for your needs. Prior to joining Kelley Blue Book in 2012, he was a writer and editor for over a decade at The Orange County Register newspaper. There he covered automobiles, music and food -- all things Matt is passionate about. He holds degrees in Communications and Culinary Arts. When not evaluating vehicles, he is cooking on his YouTube channel.

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Colin Ryan specializes in writing about new cars. He has done this for the Los Angeles Times, Variety, Kelley Blue Book, Autotrader, Popular Mechanics, Mazda and Lexus customer magazines, plus a bunch of enthusiast sites and publications. And he spent several years as a staff writer at BBC Top Gear magazine. During this zig-zag of a career trajectory, he has driven everything from budget Malaysian hatchbacks (yes, they exist) to scarily expensive Italian exotica.

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Luxury Compact SUV

Luxury Compact SUV Articles - Kelley Blue Book

2026BMW X3

2026BMW X3 Archives - Kelley Blue Book

luxury

luxury Archives - Kelley Blue Book

suv Archives - Kelley Blue Book

$48,500 - $53,499

$48,500 - $53,499 Archives - Kelley Blue Book

$53,500 - $63,499

$53,500 - $63,499 Archives - Kelley Blue Book

2-Line Blurb

140-Character Blurb

The 2026 BMW X3 offers edgy style and fresh tech in one of the best compact luxury SUVs around, whether you’re shopping for family or fun.

Cons

Power, Ride, and Handling

Driving Impressions

Fans of engaging SUVs know the BMW X3 has always had a certain charm. While it won’t shame BMW’s own sedans, it’s often surprising just how close the X3 comes to sedan-like agility and performance. Yet despite the X3’s spry nature, it also rides well.
For this latest generation, BMW says it has expanded the X3’s bandwidth even further, with more agile handling and a more comfortable ride quality.
The entry-level 255-horsepower X3 is plenty quick, accelerating from a standstill to 60 mph in just six seconds. Those seeking more muscle to complement the X3’s handling will appreciate the 393-hp X3 M50 and its ability to hit 60 mph in 4.4 seconds &#8212; about 0.2 of a second quicker than the pricier Porsche Macan.
Fuel Economy
Despite the quick acceleration and ample power, the X3 is also efficient. The 2025 model rates 29 mpg combined in base form, or 27 mpg combined achieved by the M50 variant. The 2026 model hasn’t yet been rated, but it is likely to return identical figures.

Interesting Exterior

Exterior

The fourth-generation X3’s design will probably not be everyone’s cup of tea, but that’s often the hallmark of good design. Bland is boring, and boring has no place in the world of luxury performance SUVs. The new X3 is most certainly anything but boring, whether to look at or to drive.

FAQs

Our Favorite Features and Tech

Favorite Features

Standard navigation
All X3 luxury SUVs come with the latest in BMW navigation, complete with cloud-based maps and live traffic information. The system also integrates with the available head-up display and augmented-reality video system.
BMW Operating System 9
Powering many of the X3’s tech upgrades behind the scenes, this system is the latest from BMW, featuring over-the-air (OTA) updates, a digital assistant, and bonuses like games and media streaming. Apple CarPlay and Android Auto are also standard.
Parking Assistant Professional
Although the X3 is a nimble machine, parking in tight urban spaces can sometimes be a challenge. That’s where this optional system comes in, taking over for the driver, or even parking with the driver outside the car, observing. The updated system takes curbs, road markings, and the position of other vehicles into account.
BMW Maneuver Assist
This feature of the Parking Assistant Professional package stores up to 10 tricky parking spots and the maneuvers required to enter and exit them. This makes for quicker, smoother parking on subsequent visits.
Traffic Jam Assistant
Another optional driver-assistance feature, this takes the load off the driver in stop-and-go traffic, providing hands-free driving for some of the most attention-demanding situations.

Class-Leading Interior

Interior

We expect the previous X3’s strengths to carry forward into the fourth-generation model, meaning it exudes the same feel of quality and high-tech elegance we’re all accustomed to, but with fresh style and new features and equipment.
The X3 has plenty of space, topping its class for legroom and cargo volume. The 2026 X3 has 31.5 cubic feet of space behind the rear seats and 67.1 cubic feet with the rear seats folded. Compare that to the Audi Q5’s 25.8/54 cubic feet or the Mercedes-Benz GLC’s 21.9/56.3 cubic feet.

Is the YMM a Good Vehicle?

Is the YMM Reliable?

KBB Editors' Overview

Luxurious and practical with a sporty edge, the 2026 BMW X3 is one of our favorites in the compact luxury SUV realm. Its strong combination of technology, fresh design, and ample space for the class makes it an even smarter choice after last year’s generational updates. If you’re looking for a right-sized premium SUV that doesn’t give up much to larger, more expensive models, the 2026 X3 is a great place to start.

Optional Equipment

Pricing - Dynamic

Pricing - Static

Despite the all-new model arriving just last year, pricing is up only incrementally compared to the previous generation, keeping the X3 competitive against key rivals like the <a href="https://www.kbb.com/audi/q5/">Audi Q5</a>, <a href="https://www.kbb.com/lexus/rx/">Lexus RX</a>, <a href="https://www.kbb.com/mercedes-benz/glc/">Mercedes-Benz GLC</a>, and <a href="https://www.kbb.com/volvo/xc60/">Volvo XC60</a>, all of which are priced to start within a couple thousand dollars of the X3, although the Q5 does offer a slightly less expensive base model. The <a href="https://www.kbb.com/porsche/macan/2025/">Porsche Macan</a> is somewhat smaller and sportier, and starts considerably higher. Lower-priced alternatives to the 2026 BMW X3 include the <a href="https://www.kbb.com/acura/rdx/">Acura RDX</a>, <a href="https://www.kbb.com/genesis/gv70/2025/">Genesis GV70</a>, and the <a href="https://www.kbb.com/lexus/nx/">Lexus NX.</a>
Before buying a new X3 compact luxury SUV, check the Kelley Blue Book Fair Purchase Price to see what you should be paying. The X3’s resale values for the new generation are still being determined, but the previous model has held its value well, performing substantially better than the class average. Recouping more money when selling a vehicle can mean a bigger down payment and lower monthly payments on the next one.

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Under the Hood

The standard drivetrain in the 2026 X3 is a turbocharged 2.0-liter 4-cylinder engine making 255 hp and 295 lb-ft of torque. Performance fans will appreciate the upgrade to the X3 M50 and its turbocharged 6-cylinder engine rated for 393 hp and 428 lb-ft of torque. All 2026 BMW X3 models have standard all-wheel drive, which BMW calls xDrive. Both versions of the X3 sport an 8-speed automatic transmission and mild-hybrid components.
The X3 30 xDrive can tow up to 4,001 pounds, while the M50 xDrive variant can tow 4,850 pounds.
4-Year/50,000-Mile Warranty
BMW’s new-vehicle and powertrain warranties last four years or 50,000 miles, whichever happens first. This is typical for European luxury car makers. Roadside assistance is included for the same period with unlimited mileage. Scheduled maintenance is free for three years or 36,000 miles, which is more generous than some.
Safety
The 2025 X3 scored four stars in crash testing by the National Highway Traffic Safety Administration (<a href="https://www.nhtsa.gov/ratings" target="_blank" rel="noopener">NHTSA</a>). Standard safety technology in the new X3 includes forward collision mitigation, lane-keeping assistance, and active blind-spot monitoring.

What's New for 2026

What's new for

Completely redesigned for a new generation last model year, the 2026 BMW X3 is expected to move forward with few changes. The X3 is now in its fourth generation.

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2026 BMW X3 Expert Review - Kelley Blue Book

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Frankie Rogers is a senior editor for Kelley Blue Book and focuses on the production of content. She edits and formats content, creates monthly deals lists, is a media asset curator, and photographs cars for various articles and inclusion in KBB’s image library. Her 16+ years at Kelley Blue Book have included roles as a Blue Book copy editor, press vehicle wrangler, and VIN analyst. In her spare time, she can be found tinkering with her 1970 Chevrolet Camaro, trying out new recipes in her cast iron pans, and spoiling her two cats, Grayson and Thaddeus.

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Michael Strong

Russ Heaps has produced automotive content for newspapers, magazines, and websites since 1987. Knight-Ridder recognized his contributions in founding and supplying content for the stand-alone auto section in the Boca Raton News with a Knight-Ridder Excellence award nomination in 1990. He began contributing advice and other automotive-related content to Cox Automotive as a contractor in 2010. Cox Automotive brought Russ on board as Senior Editor, Advice for Kelley Blue Book in 2022. Previously, he contributed financial and automotive content for Bankrate.com. He was also managing editor for Auto World and NOPI Street Performance Compact magazines for four years. His work has appeared in the Washington Times, the Miami Herald, the Palm Beach Post, and a host of other newspapers on a syndicated basis. 
Russ also has a deep background in travel as the supervising producer for the syndicated television series Discover America where he also wrote scripts and field-produced episodes. Additionally, he authored travel stories for AAA of the Carolinas Magazine.
He graduated Wittenberg University with a degree in Political Science. His passions are friends, cars, bourbon, and the Pittsburgh Steelers.

Russ Heaps

Midsize SUV Crossover

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2026Hyundai Palisade

2026Hyundai Palisade Archives - Kelley Blue Book

$38,500 - $43,499

$38,500 - $43,499 Archives - Kelley Blue Book

$43,500 - $48,499

$43,500 - $48,499 Archives - Kelley Blue Book

The all-new 2026 Hyundai Palisade improves on the strengths of this midsize 3-row SUV with more space, updated tech, and a rugged new off-road trim.

<ul>
<li>Middling performance and fuel economy</li>
</ul>

The 2026 Hyundai Palisade is powered by a 287-horsepower V6 engine matched with an 8-speed automatic transmission and front-wheel drive (FWD) or all-wheel drive (AWD). This V6 is a little smaller than the one in the last generation, but its output is very similar. Like the outgoing Hyundai Palisade, the new one does an excellent job of providing a minivan-like driving experience in the form of an SUV. That’s not an insult — this is a comfortable family cruiser on city streets and highway road trips alike. Some turbocharged competitors in this class have more pep in their step, but there&#8217;s something satisfying and reassuring about the growl and pull of a V6 like the one in the Palisade.
The new XRT Pro model takes the Palisade to a new level of off-road capability that it&#8217;s never seen before. We got to test it off-road and came away impressed with the kind of terrain it can tackle. Its standard all-wheel-drive system, extra ground clearance, and all-terrain tires give the XRT Pro the off-road chops it needs to stay competitive with rugged rivals like the <a href="https://www.kbb.com/honda/pilot/">Honda Pilot</a> TrailSport, <a href="https://www.kbb.com/chevrolet/traverse/">Chevy Traverse</a> Z71, and <a href="https://www.kbb.com/ford/explorer/">Ford Explorer</a> Tremor.
<h3>Fuel Economy</h3>
Although the Hyundai Palisade&#8217;s V6 got a little smaller with the 2026 redesign, its fuel economy somehow got slightly worse. It&#8217;s rated at 19 city/25 highway/21 combined mpg with front-wheel drive and 18 city/24 highway/20 combined mpg with all-wheel drive. Those combined ratings are one mpg worse than the 2025 Palisade. However, Hyundai estimates an impressive 34 combined mpg rating for the upcoming Palisade Hybrid.

Bold Exterior

The 2026 Hyundai Palisade gets a bold new look. Stacked LED blocks operating as DRLs and turn signals make up the front and rear light signatures, while pronounced wheel arches give the body a little muscle. We&#8217;d have to break out our tape measure to confirm, but we&#8217;re pretty sure the redesigned Palisade has the most square inches of front turn signal of any new vehicle, for what that&#8217;s worth.
The look changes quite a bit with the XRT Pro model, which has extra ground clearance, lower body cladding, unique wheels, and the red recovery hooks that are mandatory for off-roaders.

Dual 12.3-inch displays 
These big, high-tech, and user-friendly displays serve as the digital gauge cluster and infotainment display. We&#8217;ve loved them in every Hyundai model we&#8217;ve tested, and the new Palisade is no exception.
Wireless Android Auto/Apple CarPlay 
These essential smartphone connectivity features make it effortless to bring your maps, music, and more to the screen in the car without taking your phone out of your purse or pocket. It&#8217;s always good to see them come standard.
XRT Pro trim 
All-new for 2026, the Hyundai Palisade XRT Pro is an off-roader with enhancements like standard all-wheel drive, 8.4 inches of ground clearance, all-terrain tires, Mud, Sand, and Snow modes, and a rugged appearance package that improves approach and departure angles. We can confirm that it delivers the goods off-road.
Relaxation seating 
Available Relaxation seating brings recliners to the front- and second-row passenger seats of the Palisade. Power reclining seats with leg supports used to be reserved for expensive luxury vehicles, but now they&#8217;re available in a Hyundai family SUV.
100-watt capable USB-C ports 
Pretty much every new car has USB-C ports, but the ones in the Palisade are capable of charging at speeds of up to 100 watts. That means faster charging for your devices, and it can even keep a laptop powered up through demanding tasks like gaming and video streaming.
Hyundai Digital Key 2.0 
Can&#8217;t find your keys? No problem. With the new Hyundai Palisade, you can use your phone as a key. Your smartphone or smartwatch can lock, unlock, and start this SUV, and you can even share digital keys with family and friends.

Spacious Interior

When we first climbed into the cabin of the all-new 2026 Hyundai Palisade, we instantly noticed a family resemblance to the brand&#8217;s flagship EV, the Hyundai Ioniq 9. This is a good thing. The seats are comfortable, the materials are lovely in the Calligraphy trim, and the technology is cutting-edge. It gets the basics right with the dual 12.3-inch displays that have become commonplace in Hyundai models, while throwing in perks like 100-watt USB-C ports and available reclining seats for some of the passengers.
We never cared for the gearshift buttons in the Palisade, and the new model replaces those with a steering column shifter that turns like an old-fashioned key for shifting into drive and reverse. As for climate controls, they&#8217;re handled through a dedicated screen that&#8217;s user-friendly thanks to a thoughtfully designed center console with a spot to rest your wrist while using the controls.
The 2026 Hyundai Palisade got bigger on the outside, which translated to more space inside. The third row of seats and the cargo area are both a little bigger than they were in the outgoing model. What Hyundai calls a &#8220;reimagined third row&#8221; includes available power sliding and reclining third-row seats, USB-C ports on both sides, and bigger windows, yielding better visibility for the passengers and the driver. We tried sliding the third-row seats all the way back and were impressed that there was still decent cargo space behind them.
Speaking of cargo space, there&#8217;s 19.1 cubic feet behind the third row, 46.3 cubic feet behind the second row, and 86.7 cubic feet when all of the rear seats are folded down. As for leg room, there&#8217;s 43 inches in the second row and 32.1 inches in the third row. These interior dimensions are on the bigger side of the midsize SUV class, but a few options that are roomier still include the Chevy Traverse, <a href="https://www.kbb.com/toyota/grand-highlander/">Toyota Grand Highlander</a>, and <a href="https://www.kbb.com/volkswagen/atlas/">Volkswagen Atlas</a>.

You could&#8217;ve called the Hyundai Palisade the rookie of the year when it first arrived on the scene in 2020. It was as good as or better than well-established veterans in the competitive class of midsize <a href="https://www.kbb.com/suv/best-3-row-suvs/">3-row SUVs</a>, and it&#8217;s been one of our favorites in its class ever since. Now, the Palisade has gotten even better for 2026 as it enters its second generation. It stays true to form with a spacious and upscale 3-row interior, class-leading warranty coverage, and luxurious upper trims, but adds a modern new look, an available Palisade Hybrid (<a href="https://www.kbb.com/hyundai/palisade-hybrid/">reviewed separately</a>), what Hyundai calls a &#8220;reimagined third row,&#8221; and an off-road-ready XRT Pro model that&#8217;s more than just an appearance package. We&#8217;re impressed; the Palisade is a must-test-drive in the midsize 3-row SUV class.
We’ve spent hundreds of hours driving and evaluating this generation of <a href="https://www.kbb.com/suv/best-mid-size-suvs/">midsize SUVs</a>, including the Hyundai Palisade.

The 2026 Hyundai Palisade starts at $40,430 for the base SE model. The top Calligraphy trim kicks off at $55,555.
<table style="border-collapse: collapse; width: 100%; height: 144px;">
<tbody>
<tr style="height: 24px;">
<td style="width: 50%; height: 24px;">Palisade SE</td>
<td style="width: 50%; height: 24px;">$40,430</td>
</tr>
<tr style="height: 24px;">
<td style="width: 50%; height: 24px;">Palisade SEL</td>
<td style="width: 50%; height: 24px;">$42,935</td>
</tr>
<tr>
<td style="width: 50%;">Palisade SEL Convenience</td>
<td style="width: 50%;">$44,365</td>
</tr>
<tr style="height: 24px;">
<td style="width: 50%; height: 24px;">Palisade SEL Premium</td>
<td style="width: 50%; height: 24px;">$46,295</td>
</tr>
<tr style="height: 24px;">
<td style="width: 50%; height: 24px;">Palisade Limited</td>
<td style="width: 50%; height: 24px;">$50,765</td>
</tr>
<tr style="height: 24px;">
<td style="width: 50%; height: 24px;">Palisade XRT Pro</td>
<td style="width: 50%; height: 24px;">$50,865</td>
</tr>
<tr style="height: 24px;">
<td style="width: 50%; height: 24px;">Palisade Calligraphy</td>
<td style="width: 50%; height: 24px;">$55,555</td>
</tr>
</tbody>
</table>

Pricing of the Hyundai Palisade is about average for a midsize 3-row SUV. Its cost is comparable to the <a href="https://www.kbb.com/kia/telluride/">Kia Telluride</a>, <a href="https://www.kbb.com/honda/pilot/">Honda Pilot</a>, and <a href="https://www.kbb.com/toyota/highlander/">Toyota Highlander</a>.
Before buying a Palisade, check the Kelley Blue Book Fair Purchase Price to determine what you should really pay. Hyundai Palisade resale value is above average for the segment. Recouping more money when selling a vehicle can mean a bigger down payment and lower monthly payments on the next one.

<ul>
<li>Roomy, comfy interior</li>
<li>Advanced tech</li>
<li>Class-leading warranty</li>
</ul>

Power for the 2026 Hyundai Palisade comes from a 3.5-liter V6 mated to an 8-speed automatic transmission. This powertrain is rated at 287 hp and 260 lb-ft of torque, par for the course in this class. It can tow up to 5,000 pounds, also about average for a midsize SUV. Front-wheel drive is standard, and all-wheel drive is optional. Notably, there&#8217;s an all-new Palisade Hybrid this year, powered by a turbo hybrid engine with a net output of 329 hp and 339 lb-ft of torque.
<h3>5-Year/60,000-Mile Warranty</h3>
We&#8217;d be remiss if we didn&#8217;t mention that the 2026 Hyundai Palisade will continue the Hyundai tradition of class-leading warranty coverage. It&#8217;s backed by a 5-year/60,000-mile basic warranty and 10-year/100,000-mile powertrain warranty, matched only by the <a href="https://www.kbb.com/kia/telluride/">Kia Telluride</a> in this class.
<h3>Safety</h3>
A few standard safety features included as standard in every 2026 Hyundai Palisade include automatic emergency braking, blind-spot monitoring with safe exit assist, driver attention warning, rear cross-traffic alert, adaptive cruise control, Highway Driving Assist, and lane-keeping assist.

What's new for 2026

The 2026 Hyundai Palisade is <a href="https://www.kbb.com/car-news/2026-hyundai-palisade-gets-hybrid-option-handsome-look/">all new</a>. It enters a new generation with a fresh new look that&#8217;s sure to turn heads with a unique light signature and body lines that are boxy yet distinct. The already-roomy interior gets a little bigger, and it&#8217;s fully redesigned. One of the highlights of the new interior is the dual panoramic displays comprising a digital gauge cluster and a feature-rich infotainment display. Another highlight of the 2026 redesign is the first-ever XRT Pro trim, a capable off-roader with a rugged appearance package, extra ground clearance, all-terrain tires, additional drive modes, and more.

2026 Hyundai Palisade Expert Review - Kelley Blue Book

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