The Kia Telluride became famous for two things: being one of the best three-row family SUVs you could buy, and being so popular that dealers charged thousands over sticker for it. The redesigned 2027 model changes both stories.
It is bigger, more upscale and, for the first time, available as a hybrid. It also costs more, starting at $40,735, including destination charges. That's an increase of $3,150 compared with the 2025 Telluride LX, which started at $37,585, including destination.
The good news is that the markup era is over. Buyers in late 2026 are paying an average of 1.5% below sticker.
Here is what changed, how it drives, which trim gives you the best value, and how to avoid overpaying.
What's New for 2027
A bigger body and a bolder look
The new Telluride is 2.3 inches longer than before, and its wheelbase is 2.7 inches longer. That extra length goes mostly to the passengers. Second- and third-row legroom is better, and cargo space behind the third row grows to 22.3 cubic feet. Fold every rear seat and you get 86.9 cubic feet, about the same as before.
The styling is the most debated change. The boxy shape stays, but the front end is sharper and more upright. Some buyers love it and some don't, so see one in person before you decide.
No more V6
The old 3.8-liter V6 is gone. Every gas Telluride now uses a 2.5-liter turbocharged four-cylinder with 274 hp and 311 lb-ft of torque, paired with an 8-speed automatic. Front-wheel drive is standard and all-wheel drive is optional. EPA combined fuel economy is 22 mpg FWD and 20 mpg AWD.
You can also choose a hybrid with 329 hp and up to 35 mpg. It costs about $2,700 more than a matching gas trim.
A more premium cabin
Higher trims get two 12.3-inch screens, one for the driver and one for infotainment. Wireless Apple CarPlay and Android Auto are standard on every trim. Materials feel a step above the old model, and ventilated seats and a premium sound system are available on upper trims.
How It Drives
The Telluride still rides smoothly and stays quiet at highway speeds, which is what most families care about. Steering is light and easy in parking lots.
The big question is the new turbo-four. With a full load of people, the engine works harder than the old V6 did. If you often drive fully loaded, test-drive the hybrid too. It feels stronger and smoother pulling away.
Towing and light off-roading
Gas Tellurides tow up to 5,000 pounds, enough for a small camper or a pair of jet skis. The hybrid tows 4,500 pounds.
The X-Pro trims add all-terrain tires, standard AWD and 9.1 inches of ground clearance. They handle gravel roads and mild trails well. X-Pro is only available with the gas engine.
Is the Markup Era Over?
Yes. From 2021 to 2023, chip shortages kept Telluride supply low, and many dealers added "market adjustment" fees on top of sticker price. That is no longer the norm.
According to CarWhere's deal data, buyers of the 2027 Telluride paid an average of 1.5% below MSRP across 63 verified deals as of November 2026. The top X-Pro SX Prestige trim saw the biggest discounts, about 3.1% off. Most buyers got 0% to 4% off. A few deals still closed slightly above sticker, so shopping around matters.
How to avoid hidden fees
Even when the price is fair, dealers can add cost in other ways:
- Dealer add-ons such as paint protection, nitrogen-filled tires or anti-theft etching, often pre-installed and priced high
- Documentation fees, which vary widely by state
- Extended warranties pushed hard in the finance office
To protect yourself:
- Ask for the out-the-door price in writing before you visit.
- Say no to add-ons you didn't ask for.
- Get quotes from at least three dealers.
- Get a quote on a Hyundai Palisade too. It's a close cousin, and competition helps you negotiate.
Which Trim Is the Best Value?
|
Trim |
Price (incl. destination) |
Who it's for |
|---|---|---|
|
LX |
$40,735 |
Lowest price with three rows and the core safety tech |
|
S |
$43,635 |
The budget sweet spot, with more features for under $45k |
|
X-Line EX |
$48,835 |
Our pick: AWD, rugged styling and the best feature-to-price balance |
|
EX Hybrid |
$48,035 |
High-mileage drivers who want the best fuel economy |
|
X-Pro SX |
$55,235 |
Families who go camping or drive gravel roads |
|
SX Prestige |
$55,435 |
Full luxury, and currently among the biggest dealer discounts |
Prices from Edmunds.
How It Compares to Rivals
- Hyundai Palisade: shares much of its engineering with the Telluride. Compare both on price and styling.
- Toyota Grand Highlander: a strong pick for resale value and a roomy third row.
- Honda Pilot: still offers a V6, if you don't want a turbo-four.
The Telluride's main weak points are the polarizing new face, the loss of the V6, and no hybrid option on the off-road X-Pro.
Who Should Buy the 2027 Telluride?
The Telluride makes the most sense for families who need a real third row. It seats seven or eight, and the longer body gives adults more room in the back than before. It also suits buyers who want premium features without paying luxury-brand prices. Even the top SX Prestige trims stay under $60,000, while dealers are now discounting them the most.
It is a weaker fit if you loved the old V6's smooth, effortless power, or if you regularly tow close to 5,000 pounds. In those cases, test-drive the Honda Pilot, which still offers a V6, or consider the hybrid Telluride for its stronger pull from a stop. If your budget is under $45,000, the S trim gives you the same space and core safety tech as the pricier trims.
Conclusion
The 2027 Kia Telluride is still one of the best family SUVs you can buy. It's roomier, nicer inside and more efficient than before. It costs more, and the turbo-four isn't as relaxed as the old V6.
The best part is that you no longer need to pay a markup. Most buyers are paying at or below sticker, so if a dealer adds a market adjustment, walk away and call the next one.
Written by Habiba Shahbaz
Published Jul 6, 2026 in Car Reviews.
