Gmc Yukon vs Cupra Terramar

What's the difference?

The 2025 GMC Yukon Denali is a big, comfortable, eight-seat 4WD with few rivals in the Aussie market. However, while it may occupy its own niche, it doesn't offer enough in terms of premium look and feel and towing capacity over what could be considered its rivals – and it all comes back to that price tag. 

While it lacks a competitive warranty and its price puts it way out of reach of a lot of 4WD buyers, if you are in the market for a big premium-style wagon with a V8 and eight seats – and the Nissan Patrol and Land Rover Defender 130 aren’t your cup of tea – then the Yukon Denali just might be the right choice for you.

But when all is said and done, for the price of the Denali, you could buy two Nissan Patrols – maybe not brand-new ones – and a camper trailer and a couple of cartons of beer. 

Creating a model-shared product that’s selling into a hotly contested – and crowded – marketplace is a great way to wind up with something derivative and easily overlooked. But Cupra seems to have managed to avoid that with an end result that is distinctive and has its own character within the VW family. In top-shelf VZ form, the Terramar is an entertaining drive and there’s enough driver involvement for it to be short-listed by anybody who values the journey as much as the destination.

The less powerful entry-level S version, meantime, can’t call on the services of that fabulous 2.0-litre engine and, instead, will possibly have a harder job convincing the masses of its worthiness. The lack of all-wheel drive probably won’t count for as much as the 'missing' 85kW (compared with the VZ) and some would-be buyers might find it hard to reconcile a driver’s SUV with the smaller engine in the S. Inside either variant, though, it’s prime family real estate with the clever rear seating and plenty of space and light inside. The value for money equation is pretty handy, too.

But for all that, you get the sense Cupra will need to shout about the Terramar if it’s to be heard over the general din of this fierce market segment. It would be a real shame if this car became simply a part of that background noise.

Note: CarsGuide attended this event as a guest of the manufacturer with accommodation and meals provided.

The 2025 GMC Yukon Denali is 5337mm long (with a 3071mm wheelbase), 2378mm wide, 1943mm high and has a kerb weight of 2813kg.

Suffice it to say, it’s big. 

The signature Denali grille – with LED headlights and chrome accents – is the size of a house and it’s eye-catching. 

In terms of design, the rest of the Denali is standard SUV, but it's so massive it can't help but have plenty of presence on the road. 

This 4WD has 24-inch rims, which are not suited to off-roading at all, but I’ll get to that later.

The Denali’s dual exhaust system, with polished stainless-steel tips, adds to the street-cool aesthetic. 

The rest of the Denali exterior works – but it’s an in-your-face kind of success. 

Inside, the space is cavernous and with leather upholstery, wood-look trim and soft-touch surfaces you’d expect it to feel like a plush, well-appointed cabin. But it doesn’t quite hit the mark. 

Sure, all three rows of seats offer enough in terms of comfort and amenities but, for a $175,000 vehicle, the cabin lacks a distinctive premium feel, as you'd assume it should in a vehicle at this price point. That's a bit of a disappointment.

Depending on which angle you’re looking from, the Terramar has elements of the VW Tiguan and Porsche Macan in the way it sits on the road and in the metal shapes that make up the whole. Interestingly, though, it’s probably genetically closest to the new Audi Q3 alongside which it’s built in Hungary, although there is plenty of new Tiguan in the platform and engineering aspects.

The highlights remain the nth-degree detailing that every current-model Cupra displays, combined with a sensible, practical layout. The detailing extends to what Cupra calls parametric design which, for those with their nerd on, refers to the way the little shapes moulded into the interior fan out and subtly change shape while still continuing the overall pattern.

Think of the way a nautilus shell consists of circular loops but where each one is bigger than the previous. Has car design really come to this? Apparently.

On a more practical level, the sliding rear seat is a master stroke for a vehicle like this one. The two-storey luggage floor is a nice touch, too, although the boot needs to start empty for this to be set up initially. But given Cupra’s place in the scheme of things and its continual hints at cutting-edge technology, you may ask where’s the plug-in hybrid or EV version?

The short answer is production of the plug-in hybrid model starts this week with Australian deliveries due in November this year. And an EV must surely also be on the cards given VW’s announcement that Australia will receive the SUV version of its electric offering, the ID4, and not the hatchback ID3. All of which makes an electric Terramar even more logical. We’ll keep you posted.

The Denali has retractable sidesteps, which is a big help to hobbits, such as me, and it also has big grab handles, again a welcome addition for the purposes of easier ingress for those on the wrong side of tall.

Once you climb inside, it’s easy to appreciate the fact that this wagon’s interior is vast, functional and comfortable, with plenty of storage spaces for everything – glove box, centre console, sunglasses case, door pockets etc – and plenty of charge points for your array of smart devices, even a wireless charge pad. 

It’s a well-designed cabin but, as mentioned earlier, the Denali lacks the prestige fit and finish and even build quality usually showcased in something at this price-point.

Instead, there are expanses of hard plastic throughout, storage receptacles with flimsy lids, and lacklustre fit and finish here and there.

The vertically-oriented 16.8-inch touchscreen multimedia system is simple enough to use, even when the road gets bumpy, although it sometimes took a few stabs of my finger to get the system to register a command.

Climate control switches and the like are located under the screen.

The three rows of seats offer more than adequate levels of comfort – the front seats are heated and ventilated and the second row’s outboard seats are heated – and each row also has the appropriate amount of amenity to suit its occupants, including cupholders, USB-C sockets, map pockets and the like.

The second-row seats even have 12.6-inch HD colour touchscreens – one on the back of each front-row headrest – with which to enjoy… whatever. Those units also have wireless headphones so everyone else in the vehicle doesn’t have to listen to… whatever.

Those in the third row get air vents, a USB-C plug and two cupholders on both sides. 

Rear cargo volume with all seats up is 722 litres. With the second row folded that number expands to 2056 litres, and with only the front seats left standing you have a 'yuge' 3480 litres to play with.

The boot area has tie-down points, a shallow section of underfloor storage and plenty of packing potential. The tailgate door is power-assisted with remote open and close.

As I mentioned, the Denali’s interior is very functional and very comfortable and that includes the second and third row, which offer plenty of space. 

Overall, my thoughts on the Denali’s cabin interior boil down to “massive”, “comfortable” and “feels cheap”.

There’s an awful lot going on inside the Terramar, stating with all that parametric detailing. But the copper-coloured accents are a genuine point of interest and most of the touchpoints are relatively plush as well as looking good.

Given the side profile of the car and its upswept waistline, you might think the interior would be a bit dark and gloomy. There’s certainly plenty of black on show, but the view out is actually great. Even the typical over-the-shoulder blind-spot isn’t really there.

We managed to sample the entry-level S version and the range-topping VZ and, to be honest, the major difference is the cloth-and-vinyl versus leather seating. The former is okay but never threatens to feel high-end, while the leather in the VZ is quite lovely.

There’s only one catch: If you don’t like burgundy leather, you’re out of luck, because that’s all that’s offered. Optional in the S and V variants, the idea of burgundy leather in, say, a blue car sounds awful, but in the flesh, the colour is quite subtle. Classy, even.

There’s a pair of USB charge ports in the front centre console, and another pair in the rear seat. That rear pew also gets its own climate controls (tri-zone) and central air-vents and there are reading lights as well. It also splits 40/20/40 and the centre armrest folds down to include a pair of cup-holders.

But while the rear seat offers plenty of foot and headroom, knee room is a bit tighter. It’s not terrible, but this car won’t necessarily fit families with older, taller teenage kids. Up front, there’s no shortage of space although the centre console feels quite bulky and definitely separates the front-seat occupants.

You can see and feel a bit of Audi ergonomics rubbing off in the Cupra’s touchscreens and customisable layouts and, as always, we’re big fans of having physical buttons on the centre stack for climate control and other important functions.

The luggage area isn’t huge, but is quite deep and the tailgate has a kick-sensor. Bins at each corner of the cargo area keep smaller items under control, but the inky blackness of the trim in this area means it looks like a black hole when you first open it.

The Cupra Terramar certainly looks like a premium product and that theme continues when you look at the specification.

The entry-level S version gets standard kit such as paddle shifters, 18-inch alloy wheels, LED lighting, a powered tailgate with a kick-sensor, keyless entry and start, powered and heated front seats with a memory function, a head-up display, a heated steering wheel, tri-zone climate control, dual info-screens, full wireless connectivity, ambient lighting and wireless phone charging.

Major accessories include a panoramic sunroof and a stereo upgrade and leather trim option bundled together. The drive-away price for the S is $58,490.

Move up to the $66,490 (drive-away) V variant and you add (aside from the driveline stuff we’ll get to in a moment) 19-inch copper-accented alloys and hill descent control.

The VZ at $73,490 (driveaway) goes one bigger in the wheels department with 20-inch alloys, adaptive suspension, the leather and stereo upgrade package as standard, selectable engine sound, matrix headlights, expanded driver-selectable drive modes and bigger brakes.

The GMC Yukon Denali has a naturally-aspirated 6.2-litre V8 petrol engine – producing 313kW and 624Nm – and that’s matched to a 10-speed automatic transmission.

This is an impressive set-up – the Denali is punchy off the mark, smooth and refined at highway speeds and overall it offers a composed and comfortable driving experience.

The Denali has a full-time 4WD system, selectable driving modes include 'Normal', 'Sport', 'Off-road' and 'Tow' and an electronic limited-slip differential is standard.

The Terramar range features a choice of two petrol engines and driveline layouts, three outputs and even a mild hybrid variant. In fact, the Terramar S which uses the hybrid driveline also happens to be the entry-level version of the car.

Generally, you’d expect the hybrid version of any line-up to be a more expensive option, but in this case, the hybrid system is one of those barely-there set-ups where a 48-volt electric motor – in this case disguised as the car’s alternator – also acts as the starter motor offering a little more 48-volt acceleration when required, and then recouping some otherwise lost during braking. Most drivers would need to be told the car is a hybrid at all.

Power for the S’s 1.5-litre, turbocharged engine tops out at 110kW, while torque peaks at 250Nm and the S is front-wheel-drive. Like the other variants, the S uses a seven-speed dual-clutch auto transmission.

The next step up the Terramar ladder is badged V and it gets a turbocharged 2.0-litre engine with no hybrid assistance, but an output of 150kW and 320Nm. This will be a familiar engine to anybody who has driven a mid-sized product from the Volkswagen family in the last decade or so.

In V form, the Terramar gains a part-time all-wheel-drive system. This is not driver-selectable but instead uses sensors to know when to shift some of the torque to the rear axle. In normal circumstances, the vehicle remains fundamentally a front-wheel drive one, but under full acceleration or on low-friction surfaces, the computer will send the torque rearward to maximise grip.

The range-topper is the Terramar VZ which is endowed with a retuned version of the same 2.0-litre engine in the V, but now punching out 195kW and 400Nm. The driveline is the same as the V’s but the VZ gets a premium brake package and also adds Cupra’s version of adaptive suspension to the mix. The system can adjust the dampers at up to 1000 times per second to provide the feel and feedback the driver chooses via the selectable driving modes.

And if you want even better brakes, there’s an optional braking package for the VZ which adds six-piston front calipers and larger front rotors. You might expect the mild-hybrid version of the Terramar to be a reasonably heavy vehicle, which it is at 1696kg. But it’s a lightweight compared with the rather hefty V at 1794kg and the decidedly portly VZ at 1803kg.

Obviously, with such a big vehicle – almost three tons – driven by such a big V8 engine, fuel consumption is a concern. The 2025 GMC Yukon Denali has a listed fuel consumption figure of 12.8L/100km (on a combined, urban/extra-urban cycle).

I recorded 16.2L/100km on this test. I did a lot of high- and low-range 4WDing and this wagon was never working hard.

The Denali has a 91L fuel tank so, going by my on-test fuel-consumption figure, you could reasonably expect a driving range of about 560km from a full tank. 

Cupra claims a different combined cycle (urban/extra-urban) fuel consumption number for each of the three engines on offer, starting with the mild-hybrid version’s 5.7 litres per 100km. The mid-spec two-litre claims 7.2 litres per 100km and the high output 2.0-litre carries an 8.2 litres per 100km claim.

The standard 55 litre fuel tank in the S, then, should be good for a theoretical range of around 950km, while the V and VZ with their slightly bigger fuel tanks should be able to cover about 830km and 730km, respectively, between trips to the pump.

It pays to keep in mind, however, that Cupra recommends all three engines are run on the pricier 95-octane fuel, rather than standard 91-octane. That will add a few dollars to every fill, but the efficiency of the engines can’t be faulted.

Interestingly, in a mix of highway and city driving, our test VZ managed about 8.5L/100km which is seriously close to the official combined number. Rarely does any car get that close to its government figure.

The Denali is imported to Australia as a left-hand drive vehicle and then Walkinshaw's subsidiary company Premoso remanufactures the US 4WD wagons to right-hand drive at their facility in Clayton, Victoria. 

And that mob has done a commendable job.

Firstly, the Denali is very impressive on general driving duties – settled and composed, that V8 just rumbles along. It’s pretty close to flawless on the open road - smooth and refined. 

But off-road is a different story – especially in low-speed technical low-range 4WDing – and a lot of that has to do with the Denali’s sheer bulk and its 24-inch wheels.

The big pizza plate rims and paper-thin Bridgestone all-season tyres (285/40) aren't suited to four-wheel driving as they don’t offer the grip of a decent all-terrain and you can’t drop air pressures because there isn’t enough tyre there. Worth noting the spare is a Maxxis Bravo HT-750 (265/70R17).

In its favour, though, the Denali has a range of drive modes – one of which is Off-road and that seems well calibrated for a variety of 4WD situations – as well as high- and low-range gearing and an electronic limited slip diff.

Steering has a nice balance to it at low speeds, throttle response is quite impressive and controlled. And you can call on that 624Nm from the big 6.2-litre V8 pretty much as you see fit, and it delivers it smoothly and in a controlled fashion. 

This top-shelf variant has air suspension – that does some levelling out of even major imperfections in the road or track surface – and it does have a special damper system also working away to even out ride and handling. 

In terms of off-road measurements, the Denali offers approach, departure and rampover angles of 24.8 degrees, 20.5 degrees and 22.5 degrees, respectively.

Ground clearance is listed as 205mm, wading depth is not quoted, but likely a guesstimated 700-800mm, and turning circle is 12.4m.

And again, this is a big vehicle – 2813kg – so it requires more consideration, more patience, more skill and probably more experience than perhaps some smaller four-wheel drives do. 

The Denali's payload is listed as 634kg, which is not a lot for a massive vehicle like this. Its towing capacities are 750kg (unbraked) and 3500kg braked.

If you do, however, put a 70mm tow ball and a weight-distribution hitch on the Denali, you can tow as much as 3628kg legally (braked).

That's not a lot more than something like the Nissan Patrol, which is 3500kg, or the equivalent 4WD wagon or ute available in Australia already. So the extra towing capacity in the Denali is not that big of a selling point. GVM is 3447kg and GCM is 6577kg.

Ultimately, even though the Denali has sound four-wheel drive mechanicals and reasonable off-road traction control, it's hampered by its gargantuan dimensions and let down by its 24-inch wheels and paper-thin tyres.

If you got rid of the standard wheel-and-tyre combination and replaced it with a set of decent, aggressive all-terrain tyres on 17 inch or 18 inch, or even (if you had to) 20 inch wheels, those changes would go a long way to making this over-sized 4WD capable in some off-road scenarios.

In its current state, however, the Denali is a tow vehicle playing at 4WDing rather than the other way around.

Let’s start with the S model and its mild hybrid driveline. Frankly, if you can pick this is a hybrid of any sort, you’re doing very well. Sure, any hybrid tech should aim to be as transparent as possible, but this time around, it’s pretty much totally invisible.

So, in the absence of too much electric thrust, the petrol engine is left to do the heavy lifting. And, frankly, with just 110kW to propel it, the 1.5-litre engine has its work cut out. It’s perfectly fine at cruising velocities, but start asking the tough question in hilly country or when powering out of slow corners, and it can all start to feel and sound a bit busy. And yet there’s not the thrust to back up the perception of mechanical activity.

The seven-speed dual-clutch does a good job, but it too is kept mighty occupied by the task of improving velocity. Flapping at the paddle shifters might keep you happy for a while, but the transmission has its own smarts sufficient to make the most of those 110kW.

Which means, of course, the VZ variant is the one for keener drivers. But even then, the excellence of the 2.0-litre turbo when fitted to the Golf GTi is dulled a little when hauling around the Terramar's 1.8 tonnes. It still feels pretty perky, however, and this is certainly not a comparison between a very fast Golf and an SUV, so it’s fair to say the Terramar VZ gets along pretty well.

Again, the dual-clutch auto is your friend, although we reckon its shifts and shift-patterns might have been backed off a little to suit the heavier Cupra.

Ride quality is slightly superior in the S version (18-inch tyres play 20-inch on the VZ) but either specification is tied down pretty well with minimal body roll for this type of vehicle. That plays slightly against outright comfort, but the cabin remains quiet with very little suspension or tyre noise making it inside.

What’s a bit confusing is the way the adaptive dampers have been set-up in the VZ. Rather than using the 'Comfort' drive mode to soften the dampers for small, pattery bumps, Cupra seems to have concentrated on more dramatic, larger wheel movements for the 'Sport' setting. So, the mode-to-mode ride is very, very similar in normal work, but firms up a reasonable amount over longer, swooping bumps that start to use more and more of the available travel.

By far our biggest complaint is that old cracked record about the driver-assistance systems being too insistent. The Terramar is by no means the worst we’ve sampled, but the lane-keeping assistance is over-zealous to the point where you’ll turn it off (defeating the purpose of its inclusion). And the driver distraction alert is just flat out annoying for its habit of confusing any facial expression other than Blue Steel as a clue that you’re nodding off.

Speaking of such technologies, you’d expect all the latest driver assistance aids from a brand like Cupra, and you won’t be disappointed. There’s adaptive cruise control with follow-and-stop abilities, lane-keeping warning and assistance, collision warning, autonomous emergency braking, pedestrian and cyclist recognition, swerve-assist, traffic sign recognition, blind-spot monitoring, rear cross-traffic alert, front and rear parking sensors, a 360-degree camera view, driver distraction warning and tyre pressure monitoring.

As well as seven airbags including a centre-front bag, there are also three top-tether restraint mounts in the rear seat and ISOFIX mounts on the outboard rear positions. ANCAP has given the Terramar a maximum five-star safety rating with a 2025 date stamp.

The 2025 GMC Yukon Denali has a three-year/100,000km warranty – which is on the wrong side of ordinary in this day and age.

Roadside assistance is available for three years but check with your dealership for more details on that.

Servicing is scheduled for every 12 months or 12,000km. The first three workshop visits come in at $398.33, $420.33 and $506.48, including GST. Not outrageous for such a hefty beast.

Cupra’s standard five-year/unlimited kilometre warranty applies to the entire Terramar range. While that’s a decent amount of cover, it trails some of the cheaper brands out there with seven, eight or even 10-year warranties.

The Terramar also comes with five years' of roadside assistance including extras like emergency accommodation, towing and even car rental should the unthinkable happen.

Cupra also offers capped-price servicing packages for the Terramar, with an option of three- and five-year plans. The first three years of servicing can be pre-paid at the time of purchase for $1490, while five years' of servicing costs $2590. That’s based on the Terramar’s 15,000km or 12 months service intervals.