6 Best SUVs Under $40,000 for Families on a Budget in 2025
Written by
Josephine Nesbit
Edited by
Jenna Klaverweiden
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Looking for a family-friendly SUV that won’t break the bank? There are plenty of options, whether you need extra space, top-of-the-line safety features or just something reliable, even if you’re on a tight budget.
Car and Driver put together a list of the best family SUVs in 2025 based on roughly 200 data points, including acceleration, handling, comfort, cargo space, fuel efficiency, value and how enjoyable the vehicle is to drive.
From that list, here are six 2025 family-friendly SUVs under $40,000.
Kia Telluride
- Starting price: $37,805
- EPA MPG: 20-22 combined
The 2025 Kia Telluride is a midsize SUV with lots of space. For the sixth year in a row, it won the Kelley Blue Book 3-Row Midsize SUV Best Buy Award.
It’s a great choice for big families, capable of seating up to eight, and it has plenty of headroom and legroom for all occupants. It comes with expected safety features, like automatic emergency braking and blind-spot monitoring, but it also comes with highway driving assistance that uses adaptive cruise control and lane centering.
Honda CR-V Hybrid
- Starting price: $36,045
- EPA MPG: 40 combined
The 2025 Honda CR-V Hybrid is a compact SUV, and the efficient hybrid engine can help you save money at the pump. The base model has ample cargo space and comes with a suite of tech features, including adaptive cruise control and lane centering assistance.
Honda CR-V
- Starting price: $31,495
- EPA MPG: 28-30 combined
While you may spend more on fuel with the 2025 Honda CR-V than the CR-V Hybrid, it still gets great gas mileage. It was also voted the No. 1 crossover SUV and best compact SUV by Car and Driver. It earned the second spot for safety in the safest SUVs list.
According to Honda, the front seats are designed to reduce driver fatigue on long road trips, and there’s also a large center console bin and reclining back seats with extra legroom, Car and Driver reported.
Hyundai Palisade
- Starting price: $38,675
- MPG: 21 combined
The 2025 Hyundai Palisade is a top pick among Car and Driver, as well as Edmunds and U.S. News & World Report.
Although the handling isn’t as stable as some of its competitors, per Edmunds, it’s spacious in all three rows. Plus, there are tons of standard and optional high-tech features, and it has comfortable seating and ride quality, according to Edmunds.
Mazda CX-90
- Starting price: $39,300
- EPA MPG: 25 combined
The Mazda CX-90 is another three-row SUV that made the list. Edmunds pointed out that the vehicle is “undeniably luxurious” and outperforms other vehicles in its class; however, you may wish for more room in the third row and cargo spaces.
Mazda CX-50
- Starting price: $31,720
- EPA MPG: 25-28 combined
The Mazda CX-50 is rugged and has great handling — and even the base model comes with all-wheel drive. Its interior compares to luxury SUVs of a similar size, Car and Driver pointed out, but some of its competitors offer more passenger space.
Also of note is that the more desirable trim levels increase the price to over $40,000.
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