The Toyota Highlander has long been a go-to for families who want a safe, dependable three-row SUV. Its reputation alone is often enough to justify the price, making it one of the most predictable choices in the segment. But in 2026, that predictability comes at a steep cost, and not everyone is getting their money’s worth.

One alternative from Hyundai is challenging that formula in a big way. It undercuts the Highlander by thousands while offering more power, a more upscale interior, and surprisingly generous space across all three rows. Instead of feeling like a budget option, it pushes into near-luxury territory while still wearing an accessible price tag.

That gap is what makes this comparison hard to ignore. When a three-row SUV delivers more performance, more comfort, and more features for significantly less money, it forces a simple question, how much is the badge really worth?

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Hyundai’s Santa Fe is much cheaper than a new Toyota Highlander

A three-row bargain that is surprisingly premium

If you’re looking for a mid-size SUV that comes with three rows of seats as standard, the Hyundai Santa Fe is one of the cheapest options in 2026. It comes in thousands of dollars cheaper than its rivals, and you wouldn’t really be able to tell just from looking at it. While the Highlander has always been considered one of the default options in this segment, Hyundai is looking to disrupt Toyota’s dominance.

2026 Hyundai Santa Fe trims and pricing

The 2026 Santa Fe starts just over the $35,000-mark, which is a good price for a compact SUV, let alone a mid-size SUV with three rows of seats. It also looks much more premium than its price tag would suggest, both inside and outside. The jump in price from this Hyundai to the Toyota Highlander is pretty massive, with the Japanese SUV starting at a whopping $45,870.

Part of the reason the Highlander is so much more expensive is that Toyota has gotten rid of the entry-level LE trim. Even then, though, the 2025 Highlander LE still started over the $40,000 mark. The Santa Fe is over $10,000 more affordable than the Highlander, and as we dive into the specs throughout this article, you’ll find that it actually outperforms the Toyota in a lot of key areas.

Which trim should you get?

For the price of a base Highlander, you could get a Santa Fe Limited and still pocket yourself some change. However, we think that the SEL comes with all the features that a three-row SUV buyer would want. It includes things like a power-adjustable driver’s seat, faux-leather upholstery, heated front seats, rear air vents, and dual-zone automatic climate control. Unless you’re looking for interior luxury or some off-road prowess, this is the trim we think offers the best value for money.

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The Santa Fe is more powerful and just as efficient as the Highlander

More grunt for the money

While a lot of other mid-size SUVs still opt for a traditional V-6, both the Santa Fe and the Highlander come equipped with very perky turbocharged four-cylinder engines. However, Hyundai has managed to pull a little extra power from their turbo-four, meaning that the Santa Fe is quicker. On top of this, the added power doesn’t result in a less efficient setup.

Hyundai Santa Fe performance and efficiency

Base Trim Engine

2.5L Smartstream I4 ICE

Base Trim Transmission

8-speed automatic

Base Trim Drivetrain

Front-Wheel Drive

Base Trim Horsepower

277 HP @5800 RPM

Base Trim Torque

311 lb.-ft. @ 1700 RPM

Make

Hyundai

Model

Santa Fe

Segment

Midsize SUV

Where the Toyota Highlander extracts 265 horsepower from its 2.4-liter turbocharged four-cylinder, the Santa Fe puts down 277 horses. Both come equipped with a traditional eight-speed automatic transmission. Hyundai’s three-row SUV comes standard with front-wheel drive, while every Highlander gets all-wheel drive. Hyundai only charges an extra $1,800 for all-wheel drive on every model but the XRT, though, which gets it standard.

The Santa Fe is much quicker off the line, getting up to 60 miles per hour in 6.3 seconds, while the Highlander takes around 7.2 seconds instead. Speed isn’t the name of the game for either of these SUVs, though. Even in the comfort department, though, the Santa Fe feels more refined and much quieter at highway speeds than the Highlander.

Fuel economy

The difference in efficiency between the Santa Fe and Highlander is negligible. Considering the extra performance the Hyundai has on top, you’d think the gap would be larger. We also appreciate that you’re not really punished all that hard for opting for all-wheel drive in the Hyundai, only losing a single mile per gallon, and even then its barely.

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Hyundai’s Santa Fe is equally spacious and much nicer inside

Less mundane and more entry-level luxury

Toyota has always value simplicity and practicality above all else, and that really shines through in the interior of the Highlander. It isn’t a bad cabin, but it does feel a little dated and slightly boring. At least that will change with the upcoming electric model. In comparison, the Santa Fe feels like it’s on a different level. It is far more modern and borders on the luxurious, all while offering even more space in the third row than the Highlander.

Interior dimensions and comfort

Just looking at these figures side-by-side, you’d think that the Santa Fe was the more expensive SUV. In terms of headroom and legroom, the Hyundai has the advantage in every row. It is worth noting, though, that the Highlander can seat three in the farthest row, where the Santa Fe only has room for two. Either way, the seats in the way-back are a kid-only affair in both SUVs. The Highlander also marginally pulls ahead when it comes to cargo space.

Hyundai’s designers were clearly inspired by luxury automakers like Land Rover when they thought up the cabin of the Santa Fe. Its interior feels plush and sleek, even if you opt for the most affordable trim levels. Upper trims even come with things like Nappa leather upholstery and wood trim, all while costing the same as a base Highlander. Toyota’s three-row SUV feels decidedly pedestrian in comparison, though it does come with a decent amount of standard features.

Infotainment and technology

Credit: Toyota

In terms of tech, it feels like the Santa Fe edges out the victory. The Highlander XLE and XSE come with an eight-inch infotainment system, with other models getting a larger 12.3-inch unit instead. Every Santa Fe, however, comes with a dual-screen setup, with two 12.3-inch units sharing a single bezel. Hyundai has also included a number of physical buttons, though, so reliance on these large screens is kept to a minimum.

In terms of other tech features, the Highlander struggles to set itself apart from the budget-oriented Hyundai. Every Santa Fe gets wireless smartphone mirroring, and even the SEL has a wireless smartphone charging pad. Limited and higher trims come with a dual charging pad setup for two devices. Both SUVs come with a standard six-speaker sound system, but Hyundai’s optional 12-speaker Bose system outperforms the 11-speaker JBL system in the Highlander.

Cheaper, more spacious, and much nicer on the inside

There more than a $10,000 difference between the Hyundai Santa Fe and the Toyota Highlander. We know that the Japanese brand demands a premium because of their dedication to reliability, but it becomes really hard to justify when the gap is that large. Its even harder when the Hyundai feels like a more complete vehicle in almost all of the metrics most important to a three-row buyer. It is quicker off the line, offers more space inside, and feels leagues ahead in terms of interior quality and design. This begs the question, how much are you willing to pay for a Toyota badge?