The 2025 Volvo XC40 and 2025 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 (AWD) is standard and the base engine 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 (FWD) is standard on the XT4; AWD 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.
2025 Volvo XC40
2024 model shown
With standard AWD and a powerful base engine, the 2025 Volvo XC40 makes a tempting choice. All three available trims come with a 247-horsepower turbocharged 2.0-liter 4-cylinder engine coupled to an 8-speed automatic transmission. The XC40 is also available as an all-electric vehicle, called the XC40 Recharge.
The 2025 model carries over with only a few minor changes to color choices. The top-line Ultimate trim gets renamed Ultra and the Core trim gains power-folding rear-seat headrests.
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.
Read our Volvo XC40 Expert Review or see 2025 Volvo XC40 models for sale near you.
2025 Cadillac XT4
2024 model shown
The 2025 Cadillac XT4 is available in two trims: Premium Luxury and Sport. 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 both trims.
Cadillac gave the 2025 XT4 a couple of updates, including more standard driver-assists system such as adaptive cruise control, lane-keeping assist, HD Surround Vision, rear pedestrian alert, reverse automatic braking, intersection assist, and traffic sign recognition.
Cadillac XT4 Highlights
Standout infotainment system: As much as that handsome front grille and swanky LED lights might appeal to us, the XT4’s instrument display is the biggest newsmaker. 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.
Standard driver assists: Previously optional, Cadillac’s Active Safety Package is now standard across the line, offering some driver-assist systems unavailable on the base XC40.
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.
Read our Cadillac XT4 Expert Review or see 2025 Cadillac XT4 models for sale near you.
Similarities
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.
Conclusion
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 displays sassier styling and more standard 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 roomier interior, standard driver aids, and longer powertrain warranty. However, drivers with more refined tastes who don’t require quite as much space will prefer the Volvo.
New 2025 Volvo XC40 Prices
New 2025 Cadillac XT4 Prices
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 Volvo XC40 vehicles and New 2025 Cadillac XT4 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 Volvo XC40 | 2025 Cadillac XT4 | |
| 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 |
| Specs | ||
| 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 | 5 | 5 |
| 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 |