The Best SUVs Under $40K (Car Mom Approved)
If you’re in the market for an SUV and working with a $40k budget, you might be surprised by how many great three-row options you can find, especially if you’re open to the pre-owned market. All of the SUVs on this list offer a third row, and every single one earned a spot because of how practical, flexible, and car-seat-friendly they are. And if you only need two rows, your options open up even more — but today we’re keeping the focus on the best three-row picks for families!
If you're new here, I’m Kelly, also known as The Car Mom. I’m a certified child passenger safety tech, mom of four, and someone who genuinely loves helping families shop smarter, not harder. These are the seven three-row SUVs I would recommend to a friend with a $40k budget — based on real-life space, family function, and everything I look for during my Car Mom tours.
Best SUVs Under $40k:
Honda Pilot (after redesign in 2023)
Volkswagen Atlas
Hyundai Palisade
Kia Telluride
Nissan Pathfinder
Toyota Highlander
Ford Explorer
A Quick Note About Pricing…
Some of these SUVs start well above $40,000 when new, but buying used brings the price into a different range. You’re paying for age, mileage, and condition, and those factors can vary a lot.
Because there’s no predictable “used-car factory,” the market is always changing. I’m simply showing you what’s currently out there and where I’d start if I were looking for a great SUV under $40,000.
A 3- to 5-year-old Pilot, Atlas, Palisade, Telluride, Pathfinder, Highlander, or Explorer can easily fall under $40K depending on mileage. That means you can play with the numbers — model year, trim level, and miles — to find the best deal for your family and still end up with a safe, modern, family-friendly ride.
Honda Pilot (2023+)
Best for: Families who need space, flexibility, and true three-across options
The Honda Pilot got a full redesign in 2023 — and honestly, Honda understood the assignment. This new generation brought some major upgrades that finally make the Pilot feel competitive again in the three-row space. It’s bigger, boxier, more functional, and way more family-friendly than the outgoing model.
If you’ve seen my tour of the 2023 Pilot, you already know I was very pregnant, crawling between car seats, and still impressed with the space. Honda really widened that second-row bench, and it shows. This is one of the few midsize SUVs where I can confidently say it works for large families and is very three-across friendly, which is almost unheard of unless you're shopping full-size.
The best part about the Honda Pilot, aside from its reputation for reliability and its IIHS Top Safety Pick rating, is the flexibility of the second row. You can remove the middle seat from the bench to create captain’s chairs, which gives you the best of both worlds in one SUV. I love this feature and wish more brands offered it.
Why I like it:
The second-row bench is so wide — you’ve got real flexibility for multiple car seats
Great for three-across and 2-under-2 setups
Much better third-row space than the previous generation
Available bench on higher trims for max seating
Sun shades and ventilated seats are available
Tons of interior storage and functional cubbies that actually make sense for families
Feels big and capable without driving like a giant SUV
If you’re shopping under $40k and can find a used 2023+ Pilot, it’s absolutely worth a test drive. Honda finally made the Pilot feel like the “mom SUV” it was always meant to be: practical, flexible, and ready for real-life carpool lane duty!
Volkswagen Atlas
Best for: The family that needs maximum space
If you’ve been around for a while, you already know the Volkswagen Atlas is one of my all-time favorite midsize SUVs for families — especially big families trying to fit a lot of kids in a not-so-giant SUV. And for 2024, the Atlas got a pretty meaningful refresh. VW isn’t calling it a full redesign, but it’s definitely more than a simple mid-cycle update. The interior finally feels modern, the tech is so much better, and the exterior went a little “light-bar crazy” in a fun way.
And while none of the interior dimensions changed (which is fine, because the Atlas was already one of the widest and roomiest in the segment), the tech and comfort upgrades were very needed.
Why I like it:
One of the best second-row benches in the entire midsize segment
Three-across friendly — and not in a “this one weird combination fits” way, but in a truly flexible, real-life way
The only midsize SUV with three full sets of lower anchors in the second row
Works for so many car seat stages — infant, convertible, booster
Car seat tilt still works beautifully, even with a booster latched in
Bench available on higher trims, which is huge (so few brands do this)
Available sun shades, heated/ventilated seats, and a massive panoramic sunroof
Tech updates for 2024 are a big improvement — especially the ambient lighting and digital display
If you saw my full Atlas tour, you know how excited I was to show real three-across setups in both the SE and SEL trims. This bench seat is wide, the anchors are exposed and easy to use, and the aisle between captain’s chairs is actually large enough for an adult, which is almost unheard of for a midsize SUV.
The third row only has two seats, but honestly… that’s a good thing. VW didn’t bother squeezing in a useless middle spot, and instead gave you two wide, deep seats that make car seat installations so much easier. My only wish is for lower anchors back there, but at least you get tethers on both sides.
Overall, the Atlas continues to be one of my top recommendations for families who want a roomy midsize SUV with truly family-friendly seating. It’s practical, it’s comfortable, it’s flexible, and it just works for so many real-life setups.
Hyundai Palisade
Best for: Families who want style, comfort, and great tech
Hyundai Palisade
The Palisade is one of those SUVs I love for comfort, tech, and everyday driving. The outgoing generation (through 2025) feels luxurious without the luxury price tag, and most 2024 models fall well under $40k used, which is why it earns a spot on this list!
If you’ve seen my tours, you know the Palisade has some of the best tech and second-row comfort features in the segment. But I also need to be honest: the car seat setup isn’t the strongest option for larger families.
What I love (2024 model):
Beautiful interior and easy-to-use tech
Blind-spot camera views right on the dash
Great second-row legroom
Heated/ventilated second-row seats on higher trims
USB-C ports in the seat backs
Sunroof for the first row and another for the second/third row
Smooth, comfortable drive that feels high-end
Where it struggles:
The second-row bench (on lower trims) isn’t three-across friendly
The third row has three seatbelts, but the middle spot is extremely small
Limited latch/tether layout makes it tough for multiple forward-facers
Not ideal for families with 3–4 kids in car seats
For one to two kids, older kids, or mixed-age families, it’s fantastic. For four car seats? You’ll want something wider and more flexible.
Kia Telluride
Best for: The family who wants premium design on a budget
The Telluride is one of the most talked-about midsize SUVs for a reason — it’s stylish, comfortable, packed with tech, and genuinely feels like a luxury vehicle without the luxury badge. Kia updated the Telluride in 2023 with refreshed styling, new X-Line and X-Pro trims, better tech, and some really impressive safety upgrades. And the best part of this list? You can find 2020–2023 Tellurides under $40k on the used market.
If you’ve watched my tours, you know I love how the Telluride drives and how premium the interior feels. The tech is advanced, the screens are gorgeous, and the heads-up display and blind-spot camera views are some of my favorites in the entire segment.
What I love:
A premium, high-end interior (especially on SX/SX Prestige trims)
Blind-spot camera views on the dash
Rear-view camera mirror for better visibility with kids or car seats
Great second-row legroom
USB-Cs built into the seat backs
Heated and ventilated second-row seats available
Excellent third-row legroom for adults
Smooth, comfortable driving experience with lots of safety tech
Where it struggles:
The third-row middle seat is tiny — truly only big enough for a child or doll
Limited tether setup in the third row
The bench seat is only available on lower trims
Not ideal for three-across or families with multiple forward-facing seats
The Telluride is a fantastic six-passenger SUV, and it’s one of my top picks if you want a high-comfort, high-tech family car with one to two kids. It’s not the most flexible option for large car-seat setups — but if you don’t need three-across or a busy third row, it checks so many boxes.
The 2027 Telluride was just announced, and I can’t wait to see more! But so far, I like what I see!
Nissan Pathfinder
Best for: Families who want space and value without going too big
The Pathfinder is one of the most underrated family SUVs on the market. It doesn’t get the hype of the Telluride or Palisade, but for the price point, it delivers a lot: a good car-seat setup, strong features, and a comfortable ride. Most 2022–2023 Pathfinders fall well under $40k used, even in higher trims.
Here’s what makes it a standout for families:
What I like:
Bench seat available on all trims — even the Platinum. That alone puts it ahead of several competitors.
Three-across is possible with the right seats. Not a “three-across machine,” but workable for many families.
Car-seat tilt access on the 60/40 bench makes the third row easier to reach with a car seat installed.
Good hardware in both rows:
5 lower anchors in the second row (two full sets + a center option)
3 tether anchors across the second row
1 full set of lower anchors + 3 tether anchors in the third row
Strong family features like built-in sunshades, ceiling vents in both rows, heated second-row seats, and great storage.
Things to know:
Visibility is just okay, especially with car seats in place, and the Pathfinder doesn’t offer a digital rearview mirror.
The infotainment system is basic compared to newer competitors.
Third-row legroom is decent, but not as spacious as a Traverse or Highlander.
Toyota Highlander
Best for: Toyota loyalists + smaller families
The Highlander is one of the most requested SUVs I get asked about, especially the Hybrid. Toyota does hybrids extremely well, and the fuel economy alone makes this a popular choice for families. Most 2020–2022 Highlanders, even Hybrids, fall under $40k used, which is a big win.
But I want to be honest: the Highlander is one of the smaller midsize SUVs. If you have more than two kids in car seats or regularly use your third row, this one can feel tight. For smaller families or families with older kids, though, it’s a comfortable, reliable, efficient option.
What I like:
Excellent fuel economy on the Hybrid — around the mid-30s mpg in real life.
Beautiful interior on the higher trims (Platinum especially), with a big screen, good materials, and a comfortable driver seat.
Great Toyota reliability, which is huge if you’re buying used.
Smooth, quiet ride that feels a little more “premium” than some of its competitors.
Second-row comfort is great — sunshades, vents, USBs, plenty of legroom.
Things to know:
This is not a big three-row SUV. The third row is extremely small and only realistic for occasional use.
Limited car-seat flexibility:
Only two sets of lower anchors in the second row
Three tether anchors in the second row
No lower anchors in the third row
Only one third-row tether anchor, placed in the narrow center seat
Because of that hardware layout, the Highlander is not a great choice for three kids in car seats.
No car-seat tilt feature for third-row access.
Visibility drops significantly with car seats in the second or third row.
Ford Explorer
Best for: Budget-conscious families who want space without paying a premium
If you’re looking for something that doesn’t scream “mom car,” the Ford Explorer is always a solid contender. It’s sporty, a little more fun to drive than most midsize SUVs, and still gives you a usable third row. Just know going in — the Explorer is on the smaller end of the 3-row category. It’s noticeably smaller than the Atlas, Pilot, or Traverse, but bigger than something like the Highlander.
Where the Explorer really shines is flexibility. Depending on trim, it can be a 6-passenger (captain’s chairs) or 7-passenger (bench) SUV, and Ford is one of the few brands that offers lower anchors and tether anchors in every rear seating position. That’s a huge win for families wanting options.
Why It Works for Families
Every rear seat has its own lower anchors + tether anchor, which makes this one of the most flexible midsize SUVs for car seats
Two seats only in the third row (not three), which means both actually fit real humans
Ceiling vents for the second and third row (rare in this size class)
Great storage in the second row with cupholders, door pockets, outlets, and built-in sunshades
Good to Know Before You Buy
It’s not a large midsize SUV — think “sporty and nimble,” not “max cargo hauler”
No car-seat tilt for the second row, so captain’s chairs are the easiest route for daily third-row access
Third-row headrests are fixed and can interfere with some car seats
Rear visibility gets tight when the third row is in use or when you have a center-seat car seat installed
Car Seat Notes
If you need three across in the second row, the Explorer bench can do it — but you’ll want compact seats. With captain’s chairs, the aisle becomes your everyday access point to the third row. The third row itself is surprisingly usable, especially since it only has two seats instead of a tight three-across setup.
What’s New on the 2025 Explorer
The 2025 redesign gave the Explorer a big tech glow-up (finally). While the MSRP for the base trim is barely under $40k, it’s worth considering if the following features feel “worth it” to you! A few highlights:
Brand-new 13.2-inch infotainment screen with Ford’s updated Sync system
Built-in Alexa, Google, Apple CarPlay, and Android Auto
Available BlueCruise hands-free driving (first Explorer to offer it)
Fully redesigned interior with better materials and more storage
New wheel designs + refreshed exterior styling
Bench seat now available on Platinum, adding more family flexibility
If you want something sporty that still plays nicely with car seats — and you don’t need the biggest third row in the class — the Explorer delivers a nice mix of practicality and personality.
How to Choose the Right One
Here’s the quick version based on real-world needs:
If you need three-across:
Pilot or Atlas
If you want the nicest interior:
Palisade or Telluride
If you want maximum value:
Pathfinder or Explorer
If reliability matters most:
Highlander
If your family is growing or needs flexible seating:
Pilot — it hits every note
Choosing an SUV under $40k doesn’t mean you’re settling. You can still get plenty of space, strong safety ratings, and a comfortable ride. These seven models are the ones I consistently recommend because they work well for real families — from daily school drop-offs to weekend errands and everything in between.
And if you’re trying to figure out what you can comfortably afford, don’t forget about our free Car Payment Calculator. You can plug in the total purchase price to estimate your monthly payment, or start with your ideal payment and work backwards to see your max budget. It’s an easy way to walk into the dealership with confidence!