These Are the 13 Best SUVs You Can Buy for Under $40,000

The term "Sport Utility Vehicle" first appeared in a 1974 Jeep Cherokee SJ sales brochure.

This was back when the average car went for $15,000 and "The Way We Were" by Barbra Streisand was the number one song of the year. 

It took a while for the phrase "Sports Utility Vehicle" to catch on--the 1984 Jeep Cherokee (XJ) is considered the first modern SUV to carry that handle--but the vehicle grew to dominate today's roads.

Admittedly, SUVs aren't cheap. As of December 2022, full-size SUV/crossover vehicles had an average transaction price of nearly $80,000, according to Statista.

What You Get for Your Money

A house cost about $36,000 in 1974 and though we can't go back to the way we were, you might be surprised what you can get for under $40,000. 

The people at Consumer Reports have complied a list of what the product testing and research organization considers the best SUVs in that price range.

Subaru

"We purchase every model we test, drive it for thousands of miles, and put it through an extensive array of tests," Consumer Reports said. "Then we ask CR members about their experiences."

Taking all that data, Consumer Reports said it provides "a straightforward ranking within each vehicle category based on the Overall Score, rolling together our test and survey findings along with key safety information."

Consumer Reports includes which active safety features are standard and optional for each model, including automatic emergency braking (AEB) with pedestrian detection, AEB that operates at highway speeds, blind spot warning (BSW), and rear cross traffic warning (RCTW).

Making the List

So what can get for your hard-earned money? Let's take a look:

1. Hyundai Santa Fe Hybrid
2. Hyundai Tucson Hybrid
3. Honda CR-V
4. Subaru Outback
5. Kia Sportage Hybrid
6. Toyota Venza 
7. Ford Edge
8. Toyota RAV4 Hybrid
9. Kia Telluride
10. Toyota Highlander
11. Hyundai Palisade
12. Chevrolet Traverse 
13. Subaru Ascent 

Hybrids use both an internal combustion engine and one or more electric motors to power the vehicle. And drivers seem interested. 

About half of U.S. consumers who own gas or diesel vehicles are considering a hybrid or electric vehicle, according to KPMG.

Earlier this year, Consumer Reports said hybrids are the best option for drivers who want to save on gas, but aren't ready to go full-on SUV.

And bear in mind that the Overall Scores on the vehicles change over time as new information, such as reliability data, becomes available.