When you think of Cadillac, the Escalade is undoubtedly the first model that comes to mind. Gargantuan and opulent, it happens to be the most expensive vehicle in the American automaker’s entire lineup. However, there are far more affordable and equally interesting alternatives within the Cadillac range.
Driving a Cadillac may be more accessible than you think. In fact, with a starting price of just $54,025, the XT5 is only slightly more expensive than a mainstream compact SUV and remains below the average price of a new vehicle in 2026, which sits at just over $60,000.
An Opportunity
Cadillac’s lineup is currently undergoing a major transformation, and the automaker has already announced that 2026 will be the final production year for the XT5 SUV. It will essentially be replaced by a more modern electric model. However, there is still time to take advantage of it, especially with such an aggressive starting price.
Don’t think you’re getting a stripped-down Cadillac for $54,025, because the opposite is true. The American automaker’s SUV comes with a very comprehensive list of standard equipment, and its design is sure to turn heads wherever it goes. Comfort and ride quietness are impressive, not to mention the quality of the assembly and interior finish.
Where the Cadillac XT5 may show a slight weakness is in the design of its dashboard. It’s far from the massive digital display found in the brand’s newest models. Nevertheless, the XT5’s dashboard remains perfectly functional. Its 8-inch touchscreen is pleasant to use and the system’s navigation is very smooth.
On the mechanical side, the entry-level version features a turbocharged 2.0-liter four-cylinder engine producing 235 horsepower and 258 lb-ft of torque. The engine is paired with a 9-speed automatic transmission. The Cadillac XT5 is also one of the rare luxury models to offer front-wheel drive as standard, which is not necessarily a bad thing. If you absolutely want all-wheel drive, you’ll need to pay about $2,000 more, which remains very reasonable.
You get 18-inch wheels as standard, but several 20-inch wheel options are also available. A few exterior color options are offered as well, all at a reasonable price. The same goes for the interior, and that’s one of the reasons why I particularly appreciate this model. In my opinion, it’s hard to go wrong in this price range, and the 2026 Cadillac XT5 is a very compelling model.
Jean-Sébastien Poudrier
