The BMW X7 has become the benchmark for big luxury SUVs for a reason. It’s fast, ridiculously comfortable, packed with tech, and somehow still manages to feel smaller behind the wheel than something this massive should.
The problem is that living with an X7 usually means spending well into six figures once you start adding options. Even by luxury SUV standards, that’s a tough pill to swallow right now.
That’s exactly why more buyers are starting to look at Korean SUVs instead. Brands like Hyundai are packing premium-level comfort, features, and style into family haulers that cost tens of thousands less.
To give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from BMW and Hyundai, as well as other authoritative sources including CarEdge, IIHS, RepairPal, and TopSpeed.
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BMW rethinks what a seven-seat luxury SUV should feel like
It leans more executive lounge than traditional family hauler
Credit: BMW
The BMW X7 landed back in 2019, and BMW didn’t exactly try to hide what it was going for. The whole idea was to rethink what a seven-seat luxury SUV could be, not just build another big people mover.
Inside, it feels more like a rolling executive lounge than a traditional SUV. It’s basically a 7 Series stretched up on stilts, and for 2026 it even gets the same giant rear theatre screen you’ll find in BMW’s flagship sedan.
What the X7 offers under the hood
Credit: BMW
BMW has long been the benchmark when it comes to engines, and the X7 is no exception. The brand’s focus on precision and performance shows up in everything it builds.
It’s the kind of engineering that’s made BMW a go-to name for luxury performance, consistently setting the bar for how power and refinement should come together.
Base Trim Engine
3L I6 Hybrid
Base Trim Transmission
8-speed automatic
Base Trim Drivetrain
All-Wheel Drive
Base Trim Horsepower
375 HP @5200 RPM
Base Trim Torque
398 lb.-ft. @ 1850 RPM
Base Trim Fuel Economy (city/highway/combined)
20/24/22 MPG
Base Trim Battery Type
Lithium ion battery
Make
BMW
Model
X7
The base xDrive40i already brings solid performance, but things ramp up quickly as you move through the lineup to the punchy M60i. Each step up adds more power and presence, making it feel properly serious for a full-size SUV.
It also pulls its weight when it comes to towing, sitting near the top of its class when properly equipped. And if that still isn’t enough, there’s even an Alpina version that turns things up to 631 horsepower.
From massage seats to a rolling cinema and crystal details
Credit: BMW
All of that adds up to a very specific kind of buyer — someone who’s not just okay with the running costs, but actively wants the full luxury experience the X7 leans into. And it really does lean in.
Tick the right boxes, and you get the glass controls package with a Swarovski crystal gear selector, complete with a floating illuminated “X”. Then there’s the rear theatre screen—a massive 31.3-inch display that drops down from the roof and runs Amazon Fire TV.
Hit “theatre mode” and the whole cabin shifts mood. The seats adjust, the blinds close, the lighting dims, and it turns into a proper private cinema on wheels.
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What families actually care about in a three-row SUV
Hint: it’s less about crystal gear selectors and more about daily life
Credit: BMW
Take away the crystal gear shifter and the massage seats for a second, and what you’re left with is pretty simple—a three-row family SUV. And for most buyers, that’s really what it comes down to.
Space matters more than anything, whether it’s legroom in all three rows, decent cargo capacity, or enough USB-C ports to keep everyone charged up. On top of that, people just want something that’ll stay reliable past five years, or at least come with a warranty that gives them some peace of mind.
Six-figure price tags and pricey repair bills
Credit: BMW
A “gold standard” SUV doesn’t come with silver-level maintenance costs, and the X7 is a good example of that. CarEdge estimates around $6,597 in maintenance over the first five years, which sits roughly $1,000 above the segment average.
Step into Mercedes territory, and you’re not exactly dodging the bill either. The same data suggests a 56 percent chance of a major issue within five years, about 17 percent worse than rivals in the class and in the same ballpark as something like a Range Rover.
When the BMW badge starts to feel expensive
Credit: BMW
The powertrain is unmistakable, the interior is genuinely top-tier, and the options list is as long as you’d expect. But where the X7 really starts to lose people is depreciation.
It drops around 55.6 percent in five years, which works out to nearly $38,000 gone. Add in the chance of a major repair in that same window, and the math starts to sting a bit.
BMW still builds some of the best SUVs out there, no question. But when that much value disappears up front, it makes you think twice—especially when you can now find used examples for less than a new Tacoma.
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Hyundai Palisade—the SUV that checks every box without emptying your wallet
A closer look at a value-focused alternative to luxury SUVs
The Hyundai Palisade started out as the underdog in the segment, but the latest redesign has seriously shifted its standing. It’s edging closer to “top dog” territory, even earning that unofficial “luxury-lite” label compared to its more basic roots.
We’ll get into the features next, but the refresh has clearly pushed it a step above where it used to sit. It’s even starting to creep into the same conversation as SUVs like the X7—not quite there, of course, because nothing really beats Swarovski crystal knobs and a rolling rear-seat cinema.
Two new(ish) powertrains to choose from
Credit: Hyundai
The Palisade now comes with a bit more choice under the hood. Instead of the single V-6 from the previous generation, you get two options this time around.
There’s a familiar V-6 on offer, along with a new hybrid setup for anyone looking to cut fuel costs a bit. It’s a simple but meaningful upgrade over what came before.
2026 Hyundai Palisade specs
Powertrains
2.5-liter V-6
2.5-liter turbocharged 4-cylinder hybrid
Power
287 hp
329 hp
Torque
260 lb-ft
339 lb-ft
Transmission
8-speed automatic
6-speed automatic
Drivetrain
FWD or AWD
AWD
Towing capacity
5,000 lbs
4,000 lbs
Fuel economy
19 mpg city / 25 mpg highway
34 mpg combined with 619-mile range
The V-6 doesn’t try to be the quickest in the lineup, but it does make up for it with strong towing capability. On the other side, the hybrid gives up a bit of towing strength, but pays it back with serious range, efficiency, and mpg gains.
Neither setup is chasing big horsepower numbers, but both feel more than capable in real-world driving. It’s less about headline figures and more about giving buyers a solid mix of power and value.
A feature list that goes on for miles
The Palisade now has an impressive, almost flagship-level interior. The Art Deco-inspired dashboard stretches across the cabin, flowing from A-pillar to A-pillar, while the rounded center console packs in thoughtful touches like wireless charging and even an available driver-side massage function. It’s clearly been elevated into something more premium than before.
Notable features include:
- Curved dual 12.3-inch displays (one for the digital cluster and one for infotainment)
- Wireless Apple CarPlay and Android Auto
- Available 14-speaker Bose premium audio system
- Available built-in dash cam
- Highway Drive Assist
- Passenger Talk mode
- Over-the-air software updates
- Available Digital Key 2.0 (lock and unlock your car using your smartphone or watch)
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The verdict: two very different approaches to family luxury
One leans premium at any cost, the other leans value for the real world
Credit: Hyundai
The X7 is still pretty much the blueprint for what a large, three-row luxury SUV should be. It nails the mix of comfort, performance, and tech in a way that’s hard to argue with.
But it also comes with a ceiling most buyers simply aren’t willing to hit. With prices often pushing well past six figures, a lot of people are looking for something more realistic, especially when the average new car already sits around the $50,000 mark.
That’s where the Palisade comes in. It’s built for buyers who want comfort, quality, and features that feel a class above, without the luxury badge—even if it means you’ll see plenty of them on the road.
Safety, reliability, and everything in between
Credit: Hyundai
Even though it’s a new generation, Hyundai didn’t waste time proving the Palisade’s safety credentials. The 2026 model has already picked up an IIHS 2025 Top Safety Pick+ rating.
It comes standard with features like Forward Collision-Avoidance Assist, Blind-Spot Collision Warning, Safe Exit Assist, and Remote Start Park Assist. In testing, the moderate overlap crash result landed at “acceptable” due to the second-row lap belt setup, while the rest of the crash performance scored “good.”
Maintenance and warranties
Credit: Hyundai
This is where Hyundai really stands out. According to RepairPal, the Palisade averages around $500 a year in repair costs, roughly half what you’ll typically see with the X7.
Then there’s the warranty, which is hard to ignore. You get a 10-year, 100,000-mile powertrain warranty, whichever comes first, which takes a lot of the stress out of long-term ownership.
On paper, it makes a strong case as the easier, lower-risk choice. But if you’re after the prestige and presence of the X7, that’s still part of the equation too.
