The 2024 Volvo XC40 and 2024 Cadillac XT4 are small luxury SUVs with two rows of seats and turbocharged 4-cylinder engines. They’re stylish without being outlandish, and their pert dimensions make them ideal for navigating bustling traffic without feeling like you’re steering a battleship in a bathtub. 

The Volvo XC40 impresses with its calming driving demeanor, upscale interior, and strong scores in safety tests. All-wheel drive is newly standard for the 2024 model year, and the new base engine is more powerful and features fuel-saving mild-hybrid hardware.  

As for the Cadillac XT4, it straddles a line between subcompact and compact luxury SUVs. This means it has a little more cabin space than several subcompact rivals, though it maintains a city-friendly size. Front-wheel drive is standard on the XT4; all-wheel drive is an extra-cost option.

Let’s take a closer look at the highlights of the Volvo XC40 and Cadillac XT4 to see how they compare.

2024 Volvo XC40

Having dropped the front-wheel-drive variant and less powerful base engine, the 2024 Volvo XC40 sees its starting price tick upward to $41,995, including the destination charge. All three available trims come with a 247-horsepower turbocharged 2.0-liter 4-cylinder engine coupled to an 8-speed automatic transmission and newly standard all-wheel drive. The XC40 is also available as an all-electric vehicle, called the XC40 Recharge.

This year Volvo further sweetens the XC40 by adding more features to the base Core trim, such as keyless entry, a surround-view parking camera, 19-inch alloy wheels, and a wireless charging pad.

Volvo XC40 Highlights

Google-based infotainment unit: This snazzy tech feature comprises a 9-inch vertically-mounted touchscreen that operates via Google-based software. This slick system has highly detailed Google Maps navigation, intuitive “Hey Google” voice commands, multiple USB-C ports, and over-the-air updates, among its many perks. Hey Volvo, we like it…a lot!

Volvo safety: The automotive brand known for inventing the three-point seat belt and moose-avoidance-tests (yes, that’s a thing) extends its safety know-how to its smallest SUV. The XC40 is loaded with active driver aids and scores strong marks in crash tests conducted by the Insurance Institute for Highway Safety (IIHS).  

Classy and comfortable cabin: Volvo spent a great deal of time making sure the XC40 cabin was airy, comfortable, and an altogether lovely place to spend your time. The fit and finish are excellent; it’s not the fanciest luxury SUV interior, but it feels built to last. The seats also deserve mention for their support and comfort.

Flexible cargo floor storage: Clever details can make a big difference when cross-shopping vehicles. An available removable/folding cargo floor can create a secure spot for fragile or tip-prone items, like grocery bags. It can also be used to cover a small storage space beneath it. It’s a functional little extra that’ll keep you – and various bags and luggage – very happy.

Check this week’s Fair Purchase Price or see the XC40 models for sale near you.

2024 Cadillac XT4

2024 Cadillac XT4 Sport in Argent Silver Metallic on top of a city parking structure.

The Cadillac XT4 is similarly available in three trims and rolls into the 2024 model year with a starting price of $39,090, including destination fee. Under its hood is a turbocharged 2.0-liter 4-cylinder that sends 247 hp to the front wheels via a 9-speed automatic transmission. All-wheel drive is optional on every trim. 

Cadillac gave the 2024 XT4 a couple of updates, such as redesigned exterior LED lighting, new wheel designs, and a larger front grille. It also now comes with a high-tech 33-inch curved instrument panel that houses a digital gauge cluster and infotainment touchscreen.

Cadillac XT4 Highlights 

Upgraded infotainment system: As much as that handsome front grille and swankier LED lights might appeal to us, the XT4’s instrument display is the biggest newsmaker this model year. This 33-inch screen has a digital instrument panel mounted flush with the infotainment touchscreen. This layout is used in several Cadillac vehicles, and it looks fantastic. It also runs via Google-sourced software and comes standard with wireless smartphone connectivity.  

Freshened exterior: Okay, back to those exterior updates. The XT4 has always been a handsome luxury SUV, but having been around for six years, it was due for some nip-and-tuck treatment. The wider grille and new LED lighting are subtle but add extra pizzazz and keep it looking modern. And who couldn’t use more pizzazz, right?  

More interior space: The XT4 has an advantage over the XC40 regarding rear legroom and cargo volume. Okay, not many SUV shoppers will mind the Volvo has 2 cubic feet less luggage space. Yet the XT4’s 3 inches of extra rear legroom are much more notable.

AKG audio: Music lovers will appreciate the quality and clarity this rich 13-speaker surround-sound stereo system provides. AKG is an Austrian firm known for studio-quality audio equipment. 

Check this week’s Fair Purchase Price or see the XT4 models for sale near you. 


The XC40 and XT4 aren’t terribly expensive for luxury-badged SUVs; they’re reasonable in terms of their thirst for fuel, and they have attractive cabins with cutting-edge tech features. They also each have the letter “X” and the number “4” in their name, so there’s that, too.


The Volvo XC40 ranks at the top of our Best Luxury Subcompact SUVs ranking for many reasons. We think it’s a smart choice for anyone who wants a practical small SUV that’s relaxing to drive and equipped with many standard comfort and safety features. 

The Cadillac XT4 has made an important step forward this year with sassier styling and more advanced tech. What lets it down is more road noise and a firmer ride than you expect in a Cadillac.

The Cadillac is the value choice with its lower price tag, roomier interior, and longer powertrain warranty. However, drivers with more refined tastes who don’t require quite as much space will prefer the Volvo.

  2024 Volvo XC40  2024 Cadillac XT4
Starting Price  $41,995 $39,090
Popular Powertrains      
Engine  Turbo 2.0-liter 4-cylinder Turbo 2.0-liter 4-cylinder
Horsepower  247 hp @ 5,500 rpm 235 hp @ 5,000 rpm
Torque  258 lb-ft @ 1,800 rpm 258 lb-ft @ 1,500 rpm
Transmission  8-speed automatic, AWD 9-speed automatic, FWD
Fuel economy MPG 23 city/30 highway/26 combined 23 city/30 highway/25 combined 
Also Available  XC40 Recharge EV AWD
Basic Warranty  4 years/50,000 miles  4 years/50,000 miles 
Powertrain Warranty  4 years/50,000 miles  6 years/70,000 miles 
NHTSA Overall Safety  5 stars  5 stars
Max Seating Capacity 
Wheelbase  106.4 inches  109.4 inches 
Overall Length  174.8 inches  181.1 inches 
Width  75.2inches  76.7 inches 
Height  65.2 inches  63.2 inches 
Turning Diameter  37.4 feet  38.0 feet 
Headroom, Front  37.6 inches 39.4 inches 
Headroom, 2nd Row  38.3 inches  38.3 inches 
Legroom, Front  40.9 inches  44.1 inches 
Legroom, 2nd Row  36.1 inches  39.5 inches
Shoulder Room, Front  56.7 inches  57.0 inches 
Shoulder Room, 2nd Row  56.3 inches 55.1 inches
Cargo Volume  20.4 cubic feet   22.5 cubic feet 

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