The compact luxury SUV that BMW and Mercedes probably wish didn't exist

Published Aug 22, 2026, 8:00 AM EDT Tyler is an automotive journalist and content contributor at How-To Geek with over three years of experience covering the automotive industry. His work focuses on delivering clear, well-researched, and engaging content that helps readers better understand the vehicles they drive and the technology behind them. Before entering automotive media, he spent five years as an academic editor, developing a strong foundation in research methodology, factual accuracy, and structured analysis. This background informs his journalistic approach today, ensuring that every article balances technical insight with accessibility for a broad audience. Tyler specializes in automotive journalism, content strategy, and SEO-driven publishing, with a particular interest in performance, reliability, and the cultural role of cars. He approaches automotive writing with a distinct philosophy: vehicles should be engaging and expressive, not merely functional tools. This perspective shapes his coverage and allows readers to connect with cars beyond basic specifications. The compact luxury SUV segment is dominated by familiar German badges, but a newer challenger is making it increasingly difficult to justify paying extra for them. It offers a genuinely upscale interior, strong performance, generous standard equipment, and a driving experience that feels more engaging than you might expect from a luxury crossover. Better still, it manages all of this while costing roughly the same as its most obvious rivals. What makes it especially compelling is the value proposition. While competitors often rely on expensive options packages to unlock desirable features, this SUV comes generously equipped across its lineup, with plush materials, modern technology, and plenty of physical controls. It may not carry the same legacy badge, but when it comes to interior quality, standard features, and overall driving enjoyment, the established German players have a serious problem on their hands. In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from Chevrolet and other authoritative sources, including the EPA. The 2027 Genesis GV70 outshines the BMW X3 and Mercedes GLC Its German rivals should be worried For a long time, the BMW X3 and the Mercedes-Benz GLC have been among the most popular luxury SUVs on the market. While that hasn't changed, they have recently gained a very impressive competitor. It might not yet be quite as popular, but the Genesis GV70 is one of the most impressive luxury SUVs on the market, and its existence should make legacy brands a little nervous. Gensis delivers exceptional value for money Model (2027) Starting MSRP 2.5T Base $49,350 2.5T Select $52,550 2.5T Advanced $57,050 2.5T Sport Prestige $61,550 3.5T Sport Prestige $70,500 3.5T Prestige Graphite $71,700 Starting at just under the $50,000 mark, the 2027 Genesis GV70 is priced really well for the segment. Both the Mercedes-Benz GLC and the BMW X3 are more expensive, but the margin is very small. While Genesis is still a fairly young brand, their compact luxury SUV feels every bit as good as its rivals from legacy brands that have been around for decades. From performance to interior quality, we think the GV70 is one of the best luxury crossovers on the market. What makes the GV70 such a strong competitor is its trim lineup. In terms of features for the money that you pay, the Korean brand simply outdoes its German rivals. Both BMW and Mercedes are known to charge quite a lot for optional packages and features, but Genesis is very generous with the equipment that they include from the get-go. Sticking with the base powertrain is the way to go We will dive into performance in the next section, but we think the 2.5T variant offers the best value financially. While we used to recommend the 3.5T Sport Advance, Genesis no longer offers that model. Now, for the 2027 model year, we think that the 2.5T Sport Prestige gets you the best bang for your buck. While the 3.5-liter twin-turbo V-6 is alluring, the 2.5-liter turbocharged inline-four is more than peppy enough. The Sport Prestige package means you get luxuries like a heated steering wheel, heated and ventilated front seats, tri-zone climate control, a heads-up display, and a fantastic Bang and Olufsen sound system. Genesis delivers a masterclass in interior luxury with the 2027 GV70 Upscale without feeling like it's trying too hard Genesis offers a lot of luxuries for the money you pay, with trims including a lot of features that other brands might make you pay more for. Equally as important is its design and build quality. We might act as if we aren't superficial creatures, but when buying a luxury car you want it to look and feel good. In this regard, we think that both Mercedes and BMW fall short of the mark, particularly when compared to the GV70. Genesis focuses on all the right things Front row headroom 38.6 inches Front row legroom 41.3 inches Second row headroom 38.3 inches Second row legroom 37.2 inches Cargo capacity 28.9 cubic feet In terms of practicality, there really isn't all that much competition between these three SUVs. While the Genesis might technically be the smallest of the bunch in terms of dimensions, the real world difference is quite small. All three SUVs offer a good amount of space in the back seats and feature a cargo hold that can manage a couple of suitcases. Where there is a big difference is quality. The GV70 feels especially good for this class of car, with excellent build quality throughout the cabin and a bevy of standard luxuries. We also think that it looks the nicest, finding a good balance of modernity and functionality. It comes with a 27-inch display screen and all the modern amenities you could possibly want, but there are also plenty of physical controls. Its German rivals don't fare so well. Interior shot of the dashboard in the 2025 Mercedes-Benz GLC 350eCredit: Mercedes-Benz In terms of quality, the GLC is decent for the price you pay. Everything feels solid, and most surfaces are covered in upscale materials. We aren't the biggest fans of its design, but we accept that is subjective. The downsides here are that Mercedes charges quite a lot for optional features and that just about everything is controlled via the touchscreen. Credit: BMW The new X3, however, is well below par. The worst part by far is the material quality, with there being a number of touchpoints that feel downright low-rent, which we think is unacceptable at this price point. BMW also takes the reliance on touch controls a step further, with a great example of this being the fact that you have to use the touchscreen to adjust the direction of the air vents. Genesis values the driving experience highly in the GV70 It is loaded with character Credit: Genesis In our eyes, compact luxury SUVs should come with a healthy helping of sportiness. BMW and Mercedes have traditionally been very good at this. Both the X3 and the GLC, however, have lost the engagement that used to make them so appealing to driving enthusiasts. Genesis delivers in this regard, though, with the crossover feeling much more alive. Both the turbo-four and V-6 are exceptional Engine 2.5-liter turbocharged inline-four 3.5-liter twin-turbocharged V-6 Transmission 8-speed automatic 8-speed automatic Horsepower 300 HP 375 HP Torque 311 LB-FT 391 LB-FT Driveline AWD AWD 0-60 MPH 5.6 seconds 5 seconds In terms of base powertrains, the GV70's turbocharged four-pot is more powerful than the four-cylinder BMW X3 or Mercedes-Benz GLC. If you're going to be spending closer to $70,000, then the Germans do have the edge in terms of performance, with the M50 X3 and AMG GLC53 being exceptionally fast off the line. GV70s equipped with the 3.5-liter twin-turbocharged V-6 are still pretty quick, though, and shouldn't be underestimated. The driving experience, however, is better in the Genesis. On a twisty back road, the Korean crossover feels a lot more enjoyable, with a fantastic steering setup that is extremely communicative. It also feels capable of better athleticism. We find this really impressive, considering sportiness is something that BMW and Mercedes have built their brands on. Dial it back, and the GV70 rides just as comfortably as its rivals. One area where the Genesis does fall behind, however, is fuel economy. Four-cylinder modes only manage 23 miles per gallon combined, with six-cylinder models topping out at 21 miles per gallon combined. That is significantly less efficient than both the X3 and GLC. The GV70 is an exceptionally refined compact luxury SUV Legacy luxury brands have coasted for a long time, with very little new competition entering the space. However, Genesis has definitely shaken things up over the last couple of years. They might not sell the same volume of GV70s as BMW does X3s or Mercedes does GLCs, but the Korean luxury crossover is simply more refined. Its interior is more cohesive and functional, it features nicer materials and better build quality, and it is more enjoyable to drive, even though the Germans are a little quicker. If BMW and Mercedes aren't worried about the GV70, they should be.