Buyers looking to upgrade to a nicer vehicle should consider a subcompact luxury SUV. These vehicles offer many opulent touches that make luxury vehicles appealing but come at a reasonable price. Two options that need to be on the list are the 2025 Cadillac XT4 and 2025 Mercedes-Benz GLA. Each offers potential buyers compelling exterior styling, lots of luxury touches inside, and the ability to keep the monthly payment within a reasonable range.
If you’ve ever wanted to boast to your friends about your new Caddy or Benz, these two vehicles can get you started down that road. Let’s take a closer look at these two SUVs.
2025 Cadillac XT4
2024 model shown
The Cadillac XT4 acts as the gateway to the Cadillac lineup as it’s the least expensive model. However, it is a subcompact SUV, so if you want to break into the premium automotive market, any Cadillac is a good starting point. Cadillac adds to the XT4 for 2025 to sweeten the pot, giving it more standard driver-assist systems. These include adaptive cruise control, lane-keeping assist, HD Surround Vision, rear pedestrian alert, reverse automatic braking, intersection assist, and traffic sign recognition. The base Luxury trim is gone, leaving only the Premium Luxury and Sport trims.
Like its forefathers, the XT4 offers a lot of interior space for people and their stuff. It’s nearly the segment leader in rear seat room and cargo space. With the rear seats up, our reviewer noted the vehicle could haul four golf bags. For the record, it’s 22.5 cubic feet of space, which is a fair bit more than the GLA. It is spacious inside, and the seats are comfortable and can be upgraded if you want a sportier feel. The rest of the cabin is filled with upscale materials that can be optioned up depending on the trim level.
While ample space is a selling point, the Cadillac XT4 features a massive new curved display that measures 33 inches on the diagonal and comprises the driver information and infotainment systems. Some of that “driver information” will come from the 2.0-liter turbocharged 4-cylinder, which puts out 235 horsepower. All-wheel drive is an option, but the 2.0-liter is the only choice when it comes to the engine.
Cadillac XT4 Highlights
Safety first: The standard Active Safety Package bundles a 360-degree camera system, side bicyclist alert, rear pedestrian alert, and Intersection Automatic Emergency Braking.
Superior sound: If you’re riding in luxury, a great sound system hovers near the top of the list of wants. Cadillac teams with AKG, an Austrian company with an excellent reputation for making high-quality microphones, to develop a 13-speaker AKG sound system to its options list.
Sport trim: In addition to extra bolstering for the front seats, the 2025 Cadillac XT4 Sport comes with a specially tuned adaptive suspension, which seems well-suited to the XT4’s basic character.
Check this week’s Fair Purchase Price or see the XT4 models near you.
2025 Mercedes-Benz GLA
2024 model shown
Like the Cadillac XT4, the Mercedes-Benz GLA is the first step into the German luxury brand’s lineup. The most affordable Mercedes looks more expensive than it is, thanks in part to a bold front grille. A 10.25-inch infotainment system touchscreen in the cabin isn’t quite as large as the XT4’s but it still impresses. Under the hood, a hybrid-assist system for the engine gives the GLA a little more oomph off the line.
The GLA’s 2.0-liter turbocharged 4-cylinder engine develops 221 hp. GLA buyers can upgrade to the AMG variant, which has 302 hp. Cadillac doesn’t offer a second powerplant.
The GLA offers plenty of room for adults in the back seat, but that comes at the expense of the vehicle’s storage behind the second-row seats.
Mercedes-Benz GLA Highlights
MBUX: The Mercedes-Benz User Experience (MBUX) is the grand title of the infotainment system. It responds to voice commands using natural speech (start by saying, “Hey, Mercedes …”). Apple CarPlay/Android Auto smartphone integration is standard.
Awesome audio: Burmester produces some of the world’s best audio systems, particularly for Mercedes-Benz. It’s a cut above the AKG system available in the Cadillac XT4.
Augmented reality: A forward-facing camera shows real-time images on the touchscreen, superimposing things like house numbers and direction arrows, making life easier when driving to an unfamiliar location.
Check this week’s Fair Purchase Price or see the GLA models near you.
Similarities
The Cadillac XT4 and Mercedes-Benz GLA certainly look the part of luxury SUVs on the outside, each with a real presence on the road. The pair also carries that over to the inside, with ample convenience and safety technologies and a spacious cabin.
Pricing
New 2025 Cadillac XT4 Prices
|
Retail Price
|
Fair Purchase Price (92620)
|
|||
|---|---|---|---|---|
$41,990 |
$39,781 |
|||
$42,790 |
$40,526 |
New 2025 Mercedes-Benz GLA Prices
|
Retail Price
|
Fair Purchase Price (92620)
|
|||
|---|---|---|---|---|
$44,150 |
$40,688 |
|||
$46,150 |
$42,278 |
The Kelley Blue Book Fair Purchase Price for any individual used vehicle can vary greatly according to mileage, condition, location, and other factors. The prices here reflect what buyers are currently paying for New 2025 Cadillac XT4 vehicles and New 2025 Mercedes-Benz GLA vehicles in typical condition when purchasing from a dealership. These prices are updated weekly. The manufacturer’s suggested retail price (MSRP) quoted includes the destination fee, but does not include tax, license, document fees, and options.
Specifications
| 2025 Cadillac XT4 | 2025 Mercedes-Benz GLA | |
| Popular Powertrains | ||
| Engine | 2.0-liter turbocharged 4-cylinder | 2.0-liter turbocharged 4-cylinder |
| Horsepower | 235 hp @ 5,000 rpm | 221 hp @ 5,500 rpm |
| Torque | 258 lb-ft @ 1,500 rpm | 258 lb-ft @ 1,800 rpm |
| Transmission | 9-speed automatic | 8-speed dual clutch |
| Fuel Economy | 24 city/29 highway/26 combined mpg | 26 city/34 highway/29 combined mpg |
| Also Available | AWD | AWD |
| Specs | ||
| Basic Warranty | 4 years/50,000 miles | 4 years/50,000 miles |
| Powertrain Warranty | 6 years/70,000 miles | 4 years/50,000 miles |
| NHTSA Overall Safety | Not rated | Not rated |
| Max Seating Capacity | 5 | 5 |
| Wheelbase | 109.4 inches | 107.4 inches |
| Overall Length | 180.9 inches | 173.6 inches |
| Width | 76.7 inches | 72.2 inches |
| Height | 63.2 inches | 63.5 inches |
| Turning Diameter | 38.0 feet | 37.4 feet |
| Headroom, Front | 39.4 inches | 39.0 inches |
| Headroom, Rear | 38.3 inches | 38.1 inches |
| Legroom, Front | 44.1 inches | 41.0 inches |
| Legroom, Rear | 39.5 inches | 38.0 inches |
| Shoulder Room, Front | 57.0 inches | 55.9 inches |
| Shoulder Room, Rear | 55.1 inches | 54.8 inches |
| Cargo Volume | 22.5 cubic feet | 16.0 cubic feet |
Conclusion
These are the entry points for Cadillac and Mercedes-Benz. As a result, they’re competitive, with the XT4 coming in less expensive, while the GLA offers better fuel economy or a performance variant. It also boasts a nicer interior, but it’s pretty close there, too. Drive them both and decide if the gap between them is worth roughly $2,000.
