For nearly a decade, buyers have shifted away from sedans, minivans, and even full-sized SUVs and towards crossovers. Minivans are practically extinct, while luxury subcompact SUVs prosper. Every year, new models enter production, and existing nameplates improve with each redesign.

Is this a bad thing? Certainly not, but as a segment becomes more crowded, it becomes more challenging to find the perfect choice – the most likable one, the finest one.

In this guide, we’ll present our opinion on the very best luxury subcompact SUVs.

10. Jaguar E-Pace

Price range: $41,800 – $52,050
Pros: Handsome looks, useful and easy to use technology
Cons: Lacks typical Jaguar charizma, cramped in the back, weight compromises dynamics, expensive

The smallest Jaguar crossover is here to tempt you away from Audi Q3, BMW X1, or Mercedes-Benz GLA. These talented crossovers usually are the default choice for subcompact luxury SUV buyers, but Jaguar E-Pace offers a ticket to the exclusivity club.

Jaguar E-Pace is the smallest British marque crossover with a whiff of the luxury of the much more expensive Range Rovers. In fact, this SUV was made from Land Rover Evoque parts bin, so it’s no wonder that Jaguar E-Pace has a more square stance and respectable ground clearance, which could help you climb that huge pavement curb.

Buyers will have a choice of turbocharged petrol engines. All of them have four cylinders, and all of them have an automatic transmission, which helps reduce emissions and improve efficiency. The most potent version with 296 horsepower and all-wheel drive will offer acceleration from 0-60 mph in 6,6 seconds, but don’t mistake E-Pace for a hot hatch.

Jaguar E-Pace is one of the class’s heaviest vehicles, and it shows. Even in Dynamic mode, it will struggle to move at a rapid pace. Also, it doesn’t make an enthusiastic noise either. Still, the E-Pace offers everything that SUV buyers want: decent practicality, easy-to-use technology, and plush comfy seats. Oh, and the Meridian audio system sounds good too.

9. Cadillac XT4

Price range: $35,795 – $46,150
Pros: Long list of features, spacious interior, brave exterior design
Cons: Engine can be noisy, not sure if anyone is ready to pay $45,000 for a small Cadillac

For a long time, Cadillac was known as an expensive vehicle division within General Motors. Over the past decade, Cadillac strived to break out from the norm and become a luxury vehicle manufacturer, as it had been a hundred years ago. The compact Cadillac XT4 is an excellent example of these efforts.

It was a long time coming, but Cadillac entered the sub-compact SUV class in 2018. While they were late for the party, the effort is memorable. Cadillac XT4 is by far the most exciting to look at in its class. Also, it has nothing to do with cheaper and inferior Chevrolet equivalents. That’s a promising start.

Since Cadillac XT4 was made as a global product, this luxurious SUV does not have a thirsty V6. Instead, this front or all-wheel drive car is powered by a 2.0-liter, four-cylinder turbocharged engine, developing a hefty 237 horsepower and 258 lb-ft of torque. It’s not the most energetic power plant in the world, but it does its job quite well. It’s especially great in terms of efficiency, because the Cadillac XT4 uses a nine-speed automatic gearbox.

The good news keeps getting better. Cadillac upgraded the horrible first-generation CUE infotainment system with an all-new one, making the experience considerably smoother. In addition, the infotainment screen is now covered in far better materials than before, making it a nicer place to be, especially if you intend to replace European equivalents.

All that said, the XT4 can be somewhat of a noisemaker, so if you want a cat-like SUV – this isn’t it. Plus, you could say it’s a bit expensive for what it is, but that’s a matter of preference.

8. Lexus UX

Price range: $34,225 – $41,465
Pros: Agile and nimble in the city, high-quality interior, future-proof reliability
Cons: Not too dynamic, frustrating ergonomics, small boot space

Lexus has been in the SUV game longer than most luxury carmakers, so it shouldn’t be a surprise that Lexus UX is a successful addition to the family. After all, it was made based on the experience gained with the Lexus NX and Lexus RX.

Distinctive design features are what make every Lexus vehicle stand out. Considering how crowded the subcompact luxury SUV segment is, Lexus has created a vehicle that looks like no other. Lexus UX is longer than any rival and wider than Audi Q3 and Jaguar E-Pace, but those proportions give Lexus UX much more of a hatchback feel.

Lexus was more than brave enough to see the advantages of a hybrid powertrain. A hybrid powertrain provides a nice balance of fuel efficiency and comfort behind the wheel for daily tasks. Make sure, however, that you can live with the continuously variable transmission, which is a weak link because it does not want to be forced into any kind of spirited driving activity.

There’s a lot to say about the Lexus UX interior if you accept Lexus’ vision of the vehicle’s purpose. It scores well in terms of spaciousness and material quality, but the Japanese style of interior layout is still perplexing. It’s confusing and inconvenient every step of the way. Especially if you only want to modify one or two settings on the infotainment screen. Practice, of course, makes perfect, but it could be better.

7. Land Rover Discovery Sport

Price range: $43,200 – $49,550
Pros: Capable off-road, spacious cabin, very easy and comfortable to drive
Cons: More expensive than other rivals, thirsty petrol engines, infotainment is tricky to use

Land Rover managed numerous times to show that their SUVs offer exceptional off-road performance. While the dinkiest Land Rover looks like a miniature Discovery, it would certainly also keep up with its big brother off-road.

For decades, Land Rovers looked like a square barn. Well, modern engineering solutions have transformed Land Rovers into some of the best-looking SUVs on the market. Land Rover Discovery Sport is a good case. Classy, purposeful, and modern at once. Also, it’s one of those rare cases when a subcompact luxury SUV looks like an actual SUV.

Land Rover’s versatility is highlighted by a very smooth petrol-powered engine, generating 246 horsepower, and an all-wheel drive. The latter will be helpful in colder climates or in winter, but for the most part, it does wonders off-road. Land Rover Discovery Sport will wade through 600 mm of water, it will climb rocky hills, and after that, it will comfortably take you home.

It seems that versatility was a key focus when creating Land Rover Discovery Sport. Despite its small footprint, it offers seven seats, a huge trunk, and neat storage for various little things. The Land Rover Discovery Sport ticks every imaginable box if you are a family person. Well, aside from the price, which is high and even higher due to the thirsty petrol engine.

6. Mercedes-Benz GLA

Price range: $36,230 - $54,500
Pros: Better to drive than its predecessor, modern interior, spacious
Cons: Dorky styling, difficult to use infotainment, expensive options

Mercedes-Benz is very aware of the impact of SUV popularity. Luxury vehicle makers today offer a vast range of SUVs, which can be bought in an array of sizes, engines and options. However, Mercedes-Benz GLA, the baby Mercedes-Benz SUV, is the most popular one.

In 2019, Mercedes-Benz GLA entered its second-generation. It had a bit more height and was shorter than the previous one. Also, it became more SUV-ish looking than before, but that’s a good thing. However, design-wise, it’s a bit bland and does not look like it was created by Mercedes.

It seems that Mercedes-Benz knew the ordinary-version GLA would be a bit boring, so they’ve offered us powerful engines. The basic ones have a 221 horsepower power plant, but Mercedes-Benz also offers AMG GLA 35 and AMG GLA 45. The latter is a blistering 382 horsepower engine, which will sprint from 0 to 60 mph in just 4,3 seconds. That’s quite the opposite of boring.

The same can be said about the vehicle’s interior. It is the most memorable place to be among all its rivals. Those digital screens, impressive graphics, and interior lighting will make you feel special. And this time, the interior quality is far better and much closer to what the badge stands for.

Aside from the boring exterior, it should also be said that the cooler options of the GLA can be very expensive indeed.

5. Mini Countryman

Price range: $32,350 - $41,500
Pros: Wonderful to drive, impressive interior quality, sporty JCW version
Cons: Not exciting exterior design, small boot, rivals are roomier

A long, long time ago, the Mini name symbolized a small, cute and eager vehicle. Not anymore. Mini’s offering in the luxury subcompact SUV segment has lots of unique character and dynamic abilities.

Mini’s design language hasn’t changed much. Like the Porsche 911, Mini Countryman’s design evolves as time goes by. At first, Mini Countryman looked like a funky and stylish alternative to the norm, but the newest design improvements have made Countryman more grown-up and less distinctive.

It’s a brilliant driving machine underneath it, though. Like many other SUVs, it can be equipped with front or all-wheel drive. Either way, Mini Countryman has the spirit of the original Mini hatchback. It’s agile, quick to react to the driver’s movements, and never wants to bite your head off. It’s just a fun and enjoyable driving experience, especially in the Countryman S form, where it uses front or all-wheel-drive traction in the corners.

What makes Mini Countryman stand out from the competition is the interior. It’s Mini’s signature in terms of design, ergonomics, and, of course, build quality. Everything just feels like quality stuff. Also, as is signature, it could use more space.

4. Land Rover Evoque

Price range: $44,700 – $55,000
Pros: Head-turning looks, ability to go off-road, excellent cabin
Cons: Rear-seat space is subpar, disappointing fuel economy, some tech not standard

At first, it was described as a vehicle designed by Victoria Beckham. It was an SUV for those who prioritize style over function. Yet the second-generation Land Rover Evoque has enough style and functionality for buyers with different needs.

Stylistically, the Land Rover Evoque was one of the most memorable vehicles ever. So it’s no surprise that the Land Rover designer decided to stick with the original formula and just applied subtle but noticeable changes. For example, flush door handles rise every time you unlock the car. How cool is that?

As this car is almost ideal for trips to any fashion show, Land Rover ensured that the driving experience in the Evoque would be similar to the “I say, you do” type of driving. Four-cylinder petrol engines are silent and very smooth and help create that luxurious character the biggest Range Rovers are known for.

The best thing is that the Land Rover Evoque is meant both for fashionistas and young families. It offers a comfortable high commanding position and numerous safety assistance systems, which help navigate the urban jungle, but that sloping roof compromises interior space, especially for people in the back.

And yes – it too is expensive!

3. Audi Q3

Price range: $35,900-$42,595
Pros: Impressive technology, sharp interior styling, comfortable on longer journeys
Cons: Pricey options, dull to drive, lacking the quality of its predecessor

There is a good reason why the Audi Q3 is one of the best-selling luxury subcompact SUVs around. It has a desirable badge, technology to die for, and a satisfaction level like no other. In most ways, Audi Q3 could be the winner.

German manufacturers have a habit of putting the same design elements on every model imaginable, and Audi Q3 is no expectation. While it’s the smallest of Audi SUVs, it looks recognizable, but only if it has the bigger diameter wheels and exterior accessories. Without them, Audi Q3 just vanishes into the crowd.

Audi’s simplified approach to equipment levels is praiseworthy. Buyers could choose from two equipment levels and two engine power outputs, and both of them look like a good choice. The 2.0-liter, four-cylinder turbocharged engine with 184 or 224 horsepower has more than enough grunt for daily driving or towing something heavier. In fact, Audi Q3 has a 4,400 lbs towing capacity, which is an impressive figure for its class.

If the exterior design and engine dynamics are not something to brag about, the interior is in a different league. They combine spaciousness with easy-to-use technology, and have sliding rear seats, which can improve trunk space in just a matter of seconds. This feature will be helpful if you want to transport larger items or pets.

2. BMW X1

Price range: $35,400 – $41,900
Pros: Crips handling, practical and roomy, ability to choice powerful engine
Cons: Some iffy cabin materials, ride can be firm, noisy on the highway

Ultimate Driving Machine. For a period of time, it was the calling-sign of BMWs because of the rear-wheel-drive configuration, but with the BMW X1, this tradition came to an end. While the BMW X1 has front-wheel drive, the joy is still there.

As of late, BMW’s design has been criticized for shocking design features, but BMW X1 is just the opposite. It’s aiming for the more practical buyers, who acknowledge the somewhat old-fashioned BMW design values. Indeed, BMW X1 can’t compete in a beauty contest with Jaguar E-Pace or Volvo XC40, but as with all BMWs, it will look solid even after a number of years.

Like the biggest BMW rival Audi, BMW X1 offers simplified equipment levels and engine choice. It can also be equipped with a front or all-wheel drive and a four-cylinder turbocharged engine, generating 228 horsepower and 258 lb-ft of torque. Given the vehicle’s tidy handling credentials, most buyers will miss the much more powerful option because the BMW X1 is a joy to drive. However, it would be best to be careful when selecting tire dimensions for your BMW X1. For example, 19-inch wheels have a significant impact on comfort.

While the X1 is not particularly expensive, it could use some work on the interior – the materials could be better. Nevertheless, BMW scores big on build quality, interior room, and a big boot with a useful double floor.

1. Volvo XC40

Price range: $35,100 – $43,445
Pros: Refined interior, plenty of tech and safety features, you can buy an electric version.
Cons: The infotainment system is difficult to use, petrol powered engines can be thirsty, not the cheapest to maintain.

Volvo XC40 is the third and smallest SUV family member from the Swedish manufacturer. Still, it was created using the same recipe as the bigger and more luxurious Volvo XC60 and Volvo XC90.

Significant changes in the exterior and interior design helped improve Volvo’s image around the world. Suddenly, the bulky Volvos of the past were forgotten because the new ones just looked so modern and fulfilling. It’s by far the best-looking luxury subcompact SUV of them all.

For as long as Volvo has manufactured cars, it’s always prioritized safety over excitement, and comfort over handling. That’s the Volvo way. From a pragmatic point of view, it is a very desirable characteristic. Volvo XC40 is a soft-riding vehicle that feels good in most situations. Driving a Volvo XC40 is like a calm and interesting conversation with a Swedish colleague, and not a metal concert like the BMW X1. The same goes for engines and transmissions. It offers competitive figures, but petrol engines sometimes drone at low revs, and the automatic transmission can be a bit indecisive.

As with all modern Volvos, buyers will be wrapped in a minimalistic and calming interior philosophy. Many will appreciate that it was designed by people who appreciate thoughtful solutions for families. There is enough space in the front and the back and the boot space is also generous. Furthermore, the XC40 has smart cargo-storage features and convenient hooks for bags.

Luxury subcompact SUV. Why do you need them?

Subcompact SUVs are almost ideal for the needs of an individual or family living in a big city, as more and more people migrate to urban areas. They make it easier to maneuver than larger SUVs, take the stress out of parking, and make getting in and out more convenient.

All this sounds great, but what about drawbacks? There isn’t much to say. They are a little heavier, and they are a little more expensive to acquire and maintain, but not by much. They are also not as pleasant to drive as standard hatchbacks, and not as spacious as estates, but provide more comfort in exchange. SUVs will also retain their residual values better, which is very important in the long run.

What should SUV buyers keep in mind?

Interior space and features

SUVs are designed with the needs of drivers with families in mind. That’s why many of them can accommodate five passengers and more than enough stuff for a weekend getaway.

When choosing the right subcompact luxury SUV for you, inspect the interior space, fold-down the second-row seats. Will it be comfortable for you and your passengers?

Furthermore, if you have kids, you will want an SUV with additional USB sockets, which helps to charge smartphones or tablets.

Fuel economy

These days, fuel efficiency is an essential criterion when buying a vehicle. Modern technology has helped to improve petrol-powered engines, but every SUV buyer should ignore engines with a smaller capacity.

Despite the subcompact SUV’s smaller footprint, they are taller and heavier than an equivalent hatchback, so the tiny turbocharged engine and the turbocharger will have to work harder, worsening the fuel economy, and that’s not what you want.

The perfect example is the Mini Countryman. It can be equipped with a 1.5-liter or 2.0-liter petrol engine. While the latter is more expensive, it will help you save fuel and maintenance costs in the longer term.

Front-wheel or four-wheel drive

Most subcompact SUVs are made for densely populated cities and not for exploring the countryside. However, most of them offer different types of configurations for your personal needs.

When choosing the right SUV, think carefully about what type of configuration you want. For most people, front-wheel drive will be the most suitable choice because cars with front-wheel drive are the most economical and easiest to drive in different weather conditions.

Four-wheel-drive configurations will be enjoyed by people who like to drive or use these types of cars outside the city. For example, Land Rover Discovery Sport, with a standard four-wheel-drive system, is a very competent off-roader, which can keep up with the bigger Discovery.

Towing capacity

SUVs are very often bought by people who enjoy an active lifestyle, so it’s not surprising that even the smallest SUVs can carry a certain amount of weight.

For example, the Jaguar E-Pace has a towing capacity of 3,968 pounds, the Audi Q3 – 4,400 pounds, and the Volvo XC40 offers 3,500 pounds of towing capacity. It’s worth mentioning that Volvo XC40 has the same towing capacity as the bigger and more expensive Volvo XC60.

Buying a used SUV? There’s a ton choice for you too

Subcompact SUVs are not a new type of automobile. They’ve been in manufacturing for a while, so it’s not surprising that these luxurious SUVs have found their way onto the used vehicle market. In fact, there are thousands of rather intriguing offers for those seeking to buy the best used luxury subcompact SUV.

A used SUV is no different than any other car. Every buyer should evaluate the vehicle’s condition, test-drive it for at least 30 minutes, and, if feasible, bring along a friend or an expert for a complete assessment.

Finally, it’s always worth getting a car history check. To do so, go to our VIN decoder page and enter the VIN code of your chosen vehicle. We’ll help you determine the vehicle’s actual mileage and information about thefts, title changes, and damages.

10 of the best luxury subcompact SUVs compared

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