14 Reasons Why the Kia Telluride is Still Dominating the Mid-Size SUV Market

“2020 Kia Telluride front view (United States)” by Gold Pony is licensed under CC BY 3.0

The automotive landscape is fiercely competitive, particularly within the mid-size SUV segment, where manufacturers constantly vie for consumer attention and market share. Yet, amidst this crowded field, one name consistently rises above the fray: the Kia Telluride. Since its introduction, the Telluride has not just performed well; it has unequivocally dominated, leveraging a strategic blend of quality, value, and customer-centric innovation to secure its position as a segment titan.

Its ascent isn’t merely a fleeting trend but a testament to Kia’s deliberate approach to understanding and meeting the evolving demands of North American drivers. This vehicle has successfully redefined expectations, proving that a compelling package of sophisticated design, robust capability, and advanced technology can be delivered without compromising accessibility or long-term value. It has become an “aha moment” for the brand, attracting a different type of customer and shifting perceptions, fundamentally transforming Kia’s image from a “budget” to a “premium” player.

In the following exploration, we delve into the multifaceted reasons behind the Kia Telluride’s enduring success. We will analyze the specific attributes and strategic decisions that have propelled it to the forefront of the mid-size SUV market, establishing a benchmark for what a family-friendly, adventure-ready, and technologically advanced vehicle can truly be. Join us as we uncover the secrets to its remarkable, sustained dominance, synthesizing J.D. Power awards, industry trends, and strategic insights.

“Kia Telluride” by JLaw45 is licensed under CC BY 2.0

1. **Residual Value Leadership: A Foundation of Enduring Worth**The Kia Telluride’s market dominance is firmly anchored by its remarkable ability to retain value over time, a crucial metric for both consumers and industry analysts. This isn’t just a claim; it’s validated by an impressive four consecutive J.D. Power ALG Residual Value Awards, spanning from 2022 to 2025. Such consistent recognition underscores the Telluride’s enduring quality and its strong standing in the used-vehicle market, driving long-term equity appreciation for the brand.

These prestigious awards highlight the Telluride’s capacity to retain over 60% of its Manufacturer’s Suggested Retail Price (MSRP) after three years of ownership. This performance significantly reduces depreciation costs, making the SUV an exceptionally attractive proposition for both outright buyers and those considering leasing options. It directly translates into greater financial appeal and a compelling investment thesis for consumers.

Furthermore, the J.D. Power ALG Residual Value Award evaluates various factors, including used-vehicle performance, the brand’s outlook, and competitive pricing dynamics. In this rigorous assessment, the Telluride has consistently outperformed formidable rivals such as the Audi Q7 and the Toyota Highlander Hybrid. For investors, this signals a sustainable competitive advantage, as vehicles with strong residual values often correlate with higher resale prices, reduced lease incentives, and stable consumer demand.

Car Model Information: 2023 Kia Telluride SX Prestige X-Pro
Name: Kia Telluride
Caption: 2022 Kia Telluride EX (US)
Manufacturer: Kia
Production: February 2019 – present
ModelYears: 2020–present (North America)
Class: Mid-size crossover SUV
BodyStyle: SUV
Layout: unbulleted list
Related: Hyundai Palisade
Predecessor: Kia Mohave
Sp: us
Categories: All Wikipedia articles written in American English, Articles with short description, Cars introduced in 2019, Commons category link from Wikidata, Crossover sport utility vehicles
Summary: The Kia Telluride is a mid-size crossover SUV with three-row seating manufactured and marketed by Kia since 2019. Positioned above the smaller Sorento, the Telluride was previewed as a concept car in 2016, with the production model debuting in early 2019 as a 2020 model. It shares components and specifications with its sister model, the Hyundai Palisade, including its engine, transmission, and wheelbase. Named after the town of Telluride, Colorado, the Telluride is the largest vehicle Kia has manufactured in the United States.

Get more information about: Kia Telluride

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“2020 Kia Telluride (2)” by Jason Lawrence is licensed under CC BY 2.0

2. **Strategic U.S. Manufacturing: Building Confidence Locally**A pivotal factor in the Kia Telluride’s success, particularly within the crucial American market, is Kia’s strategic investment in U.S. manufacturing. The Telluride is proudly built at Kia’s state-of-the-art plant in Georgia, a decision that resonates deeply with American consumers and offers tangible benefits to the brand’s operational efficiency. This local production strategy is a cornerstone of its “all-American appeal” and enhances its credibility.

Local manufacturing dramatically reduces logistics costs and streamlines the supply chain, ensuring that vehicles can reach dealerships and customers more efficiently. Beyond the economic advantages, building the Telluride in the U.S. significantly enhances brand credibility within the American market, which stands as the world’s largest consumer of SUVs. This positioning taps into national pride and helps to demystify any lingering concerns about the quality of Korean vehicles compared to established American and Japanese counterparts.

This commitment to local production is further bolstered by Kia’s comprehensive 10-year/100,000-mile powertrain warranty. This class-leading warranty, coupled with the U.S. assembly, reinforces Kia’s dedication to durability and quality, effectively solidifying customer loyalty. It also ensures that ownership costs are kept low and peace of mind is high for the discerning buyer.

Buying a high-performing used car >>>
Brand: Kia Model: Telluride
Price: $38,471 Mileage: 42,622 mi.

“Kia Telluride SX-Prestige X-Line V6 AWD (2024) (53625020054)” by Charles from Port Chester, New York is licensed under CC BY 2.0

3. **Exceptional Brand Quality: A Systemic Commitment**While specific J.D. Power IQS (Initial Quality Study) wins for the Telluride itself are not explicitly detailed post-2020 in the provided context, the broader Kia brand’s consistent performance underscores a systemic commitment to quality that benefits all its models, including the Telluride. The brand has impressively maintained its position as the top mass-market IQS performer for six consecutive years through 2023. This achievement speaks volumes about the meticulous engineering and manufacturing standards applied across Kia’s entire lineup.

This sustained recognition reflects widespread, systemic quality improvements across the brand, rather than isolated successes. Models such as the Forte and Carnival have also led segment rankings in their respective categories, demonstrating that Kia’s quality initiatives are deeply embedded and yield consistent results. The Telluride, in turn, benefits from this overarching ethos of excellence, positioning it as a top choice in its segment with an 86/100 J.D. Power Quality & Reliability score.

The Telluride’s design, its robust towing capacity of up to 5,500 lbs, and its inclusion of user-friendly features like wireless Apple/Android Auto integration are all elements that align perfectly with J.D. Power’s focus on owner satisfaction. These attributes contribute directly to a positive initial quality experience, solidifying the Telluride’s reputation as a well-made and intelligently designed SUV that consistently meets, and often exceeds, owner expectations. This dedication to quality is a major reason why Kia has transformed its image from a “budget” to a “premium” player.

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Brand: Kia Model: Telluride
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“Kia Telluride” by toyyoda8 is licensed under CC BY 2.0

4. **Premium Design Aesthetics: Rugged Elegance Redefined**The Kia Telluride’s distinctive design is frequently cited as a primary factor behind its overwhelming popularity and immediate recognition. Unlike many of its competitors, which often opt for softer, more aerodynamic lines, the Telluride proudly showcases a bold, boxy design that instantly sets it apart. This aesthetic choice doesn’t just make it look good; it embodies a unique blend of rugged elegance and substantial road presence.

Its exterior styling perfectly marries toughness with sophistication. The Telluride presents a standout face, characterized by a large, very vertical grille and bold body lines that convey strength and capability. Tall rooflines further enhance its commanding presence, giving it an undeniable SUV-like appeal with details ranging from LED lighting to “TELLURIDE” subtly spelled out in a long, thin font on the front edge of the hood.

Completing this striking visual package are available 20-inch alloy wheels, which add a significant touch of luxury and refinement. This purposeful design not only appeals aesthetically but is also highly functional, maximizing interior space and practicality for families and other users who prioritize roominess and comfort. The Telluride’s ability to offer a visual statement that is both sophisticated and robust is a significant draw for consumers seeking a vehicle that stands out from the crowd.

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Brand: Kia Model: Telluride
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“Kia Telluride (ON) Washington DC Metro Area, USA” by OWS Photography is licensed under CC BY 4.0

5. **Spacious & Versatile Interior: Family-Friendly Comfort**Beyond its commanding exterior, the Kia Telluride truly distinguishes itself with an interior that is both remarkably spacious and exceptionally versatile, making it an ideal choice for families and groups on the go. The cabin is engineered to provide a premium experience for all occupants, offering roominess and comfort often found in more expensive luxury SUVs. It’s truly an “upmarket cabin” where attention to detail is evident at every turn.

The Telluride features genuine three-row seating, accommodating seven or eight passengers with ease. There’s generous legroom in the second row, which can also be equipped with captain’s chairs for enhanced comfort and easier access to the third row. Crucially, the third row offers even more room than normal for adults, making it a genuinely practical choice for larger families or when carpooling with friends, providing better overall roominess for people in all rows.

Versatility extends to its impressive cargo capacity, ensuring it meets diverse needs. With all seats in place, it offers 21 cubic feet of cargo space. Folding down the third row expands this to a significant 46 cubic feet, and when both the second and third rows are tucked away, an impressive 87 cubic feet of storage becomes available. The second-row can slide and recline, while the third row folds flat to create a level loading floor, further enhancing utility.

Thoughtful additions like large door pockets, a center console, and underfloor storage in the back ensure that every item has its place, reinforcing the Telluride’s reputation for intelligent, well-made design. Kia even sweated the details on its three-row Telluride, such as seat stitching and control layout, which adds to why its overall fit and finish resonates so well with consumers.

Buying a high-performing used car >>>
Brand: Kia Model: Telluride
Price: $38,471 Mileage: 42,622 mi.

“Kia Telluride (ON) Washington DC Metro Area, USA (2)” by OWS Photography is licensed under CC BY 4.0

6. **Advanced High-Tech Features: Staying Connected and Comfortable**In an increasingly connected world, the Kia Telluride stands out with its state-of-the-art technology, seamlessly integrating convenience, entertainment, and driver interaction. At the heart of its digital command center is a standard 10.25-inch touchscreen infotainment system, providing an intuitive, touch-compatible interface with sharp graphics that enhance the user experience. This system includes essential features like Apple CarPlay, Android Auto, and navigation across all trim levels.

The Telluride ensures that everyone stays powered up and connected, offering numerous USB ports throughout the cabin, alongside convenient wireless charging capabilities. For those seeking an even more elevated experience, optional features such as a head-up display project vital information directly into the driver’s line of sight, while a premium Harman Kardon audio system transforms every journey into a concert-like experience. These thoughtful additions elevate the in-cabin atmosphere significantly.

Further enhancing convenience and passenger interaction, the Telluride incorporates intelligent features like the driver talk system. This innovative function amplifies the driver’s voice using the rear speakers, making it effortless to communicate with passengers in the second and third rows without having to raise one’s voice. The meticulously designed, high-content flat-planed dash, along with sophisticated climate control systems for heating and cooling, further underscore Kia’s commitment to a truly modern and comfortable driving environment.

Buying a high-performing used car >>>
Brand: Kia Model: Telluride
Price: $38,471 Mileage: 42,622 mi.

“Kia Telluride (ON) Washington DC Metro Area, USA (3)” by OWS Photography is licensed under CC BY 4.0

7. **Comprehensive Safety Suite (Kia Drive Wise): Prioritizing Peace of Mind**Safety is not merely an option but a paramount characteristic of the Kia Telluride, reflecting the automaker’s deep commitment to driver and passenger protection. The vehicle comes equipped with an extensive array of additive safety features, expertly developed to provide a secure and confident driving experience. This dedication to safety is one of the key reasons for its widespread appeal, particularly among family-oriented buyers.

Central to this commitment is the Kia Drive Wise suite of advanced driver-assistance systems, which are standard across all trims. This comprehensive package includes crucial technologies such as forward collision warning with pedestrian detection, automatic emergency braking, and lane-keeping assist, actively working to mitigate potential hazards on the road. These systems represent a significant leap in everyday driving protection.

Beyond the standard offerings, the Telluride also integrates advanced features like adaptive cruise control with stop-and-go functionality, which intelligently adjusts speed to maintain a safe distance from the vehicle ahead. A surround-view camera system provides a 360-degree perspective for easier maneuvering, and Highway Driving Assist enables semi-autonomous driving on compatible highways, reducing driver fatigue. The Telluride’s evolution is critical: higher-end features command price premiums and improve customer retention, boosting margins.

These features, combined with exemplary safety ratings from the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS), including a Top Safety Pick award, robustly assure potential buyers of the Telluride’s unwavering reliability and safety credentials, cementing its status as a secure choice for any family. It significantly boosts its popularity among family-oriented buyers.

Buying a high-performing used car >>>
Brand: Kia Model: Telluride
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“Kia Telluride (ON) Washington DC Metro Area, USA (1)” by OWS Photography is licensed under CC BY 4.0

8. **Robust Performance and Driving Dynamics: Powering Every Adventure**Beneath its commanding exterior, the Kia Telluride houses a powertrain designed for real-world capability and smooth operation. It features a naturally aspirated 3.8-liter V6 engine, producing 291 horsepower and 262 lb-ft of torque, seamlessly paired with an eight-speed automatic transmission. This setup delivers a stable output, ensuring a supreme driving experience whether cruising uphill or navigating various terrains, all without exhibiting mechanical resistance.

This engine, while described as somewhat ‘old-school’ in an era of downsized turbos and hybrids, has consistently proven its mettle. It offers ample power for daily commuting, confident highway travel, and even manages light towing tasks with ease. With its Tow Package, the Telluride is capable of managing up to 5,000 pounds, aligning perfectly with the demands placed on a versatile family SUV.

The Telluride’s suspension tuning leans definitively towards comfort, adeptly soaking up bumps and imperfections on the road. The steering system is nicely weighted, providing direct feedback that instills a sense of confidence in its handling. Drivers will find the Telluride accelerates smartly into highway traffic, maintaining a particularly well-composed experience whether on congested city streets or more dynamic, twisty country roads.

For those seeking enhanced traction and control, an available All-Wheel Drive (AWD) system proves to be a valuable asset in diverse driving conditions. This system improves performance in wet or snowy environments, ensuring better grip. Complementing this, the Drive Mode Select offers five distinct modes—Smart, Eco, Sport (WD only), Comfort, and Snow (AWD models)—allowing drivers to fine-tune the vehicle’s overall performance to their specific preferences and prevailing road conditions.

Buying a high-performing used car >>>
Brand: Kia Model: Telluride
Price: $38,471 Mileage: 42,622 mi.

“Kia Telluride SX-Prestige X-Line V6 AWD (2024) (53624893848)” by Charles from Port Chester, New York is licensed under CC BY 2.0

9. **Unmatched Value Proposition and Competitive Pricing: A Smart Investment**The Kia Telluride stands as a compelling value proposition in the crowded mid-size SUV segment, strategically priced to offer significantly more standard equipment and a higher level of overall refinement than many of its direct competitors. Its starting price, around $33,000 (or $36,390 more recently cited), positions it as an accessible yet premium option, especially when compared to rivals that can climb well into the higher $40,000 range when similarly equipped.

This competitive pricing strategy is not merely about being cheaper; it’s about delivering exceptional value for money. Even when laden with the luxury amenities typically found in higher-tier vehicles, the Telluride remains a relative bargain. It successfully allows Kia to compete vigorously not just on the strength of its quality and features, but also on price, thereby broadening its appeal to a wider spectrum of consumers.

The Telluride’s ability to offer such a robust package at its price point is further amplified by its strong residual values. While already detailed as a foundation of its market dominance, this enduring value directly translates into lower depreciation costs for owners. This financial advantage makes the SUV an even more attractive proposition, confirming it as a smart long-term investment that reduces overall ownership expenses and fosters stable consumer demand.

Buying a high-performing used car >>>
Brand: Kia Model: Telluride
Price: $38,471 Mileage: 42,622 mi.

“Kia Telluride SX-Prestige X-Line V6 AWD (2024) (53624893843)” by Charles from Port Chester, New York is licensed under CC BY 2.0

10. **Industry-Leading Warranty and Ownership Peace of Mind: A Commitment to Durability**Kia’s commitment to quality and durability is unequivocally demonstrated through the Telluride’s industry-leading warranty coverage. This comprehensive protection plan features an impressive 10-year or 100,000-mile warranty on powertrain components, alongside limited protection for five years or up to 60,000 miles. This class-leading coverage underscores Kia’s confidence in the vehicle’s long-term reliability.

This extensive warranty was a groundbreaking policy when initially introduced by Kia, specifically designed to provide buyers with unparalleled peace of mind. It effectively reduces concerns about potential repair costs down the line, ensuring that ownership expenses remain low and confidence in the vehicle’s longevity remains high for every discerning buyer. Such a robust warranty not only protects consumers but also reinforces their trust in the brand.

By coupling this impressive warranty with its U.S. assembly at the Georgia plant, Kia further solidifies its dedication to producing high-quality and durable vehicles. This dual assurance of local production and comprehensive coverage plays a critical role in fostering strong customer loyalty and reinforces the Telluride’s reputation as a reliable and well-built SUV, a testament to the brand’s meticulous engineering standards.

Buying a high-performing used car >>>
Brand: Kia Model: Telluride
Price: $38,471 Mileage: 42,622 mi.

“Kia Telluride Washington DC Metro Area, USA” by OWS Photography is licensed under CC BY 4.0

11. **Resounding Critical Acclaim and Prestigious Awards: A Trophy Case Full of Praise**Since its introduction, the Kia Telluride has accumulated a remarkable array of prestigious awards and garnered glowing reviews from virtually every corner of the automotive industry. This widespread critical acclaim is a clear indicator of its exceptional design, performance, and overall value. It consistently rises above the fray, proving itself a segment titan by winning award after award.

Among its significant accolades, the Telluride was named the 2020 World Car of the Year, a monumental achievement that firmly established its global standing. It also earned the coveted title of MotorTrend SUV of the Year and secured a spot on Car and Driver’s highly respected 10Best list. These high-profile recognitions underscore the Telluride’s top-tier caliber, outstanding performance, and compelling value proposition.

The Telluride’s enduring success is further highlighted by its impressive J.D. Power Quality & Reliability score of 86/100, which positions it as a top choice in its segment. From its very first day on the market, the Telluride has resonated strongly with both consumers and industry evaluators, consistently receiving praise for its distinctive exterior design, upscale passenger experience, and premium technology offerings, all delivered at a unique price point.

Buying a high-performing used car >>>
Brand: Kia Model: Telluride
Price: $38,471 Mileage: 42,622 mi.

“Hyundai Palisade (53677720785)” by Jason Lawrence from New York is licensed under CC BY 2.0

12. **High Customer Satisfaction and Loyalty: Owners Who Rave**The true measure of any vehicle’s success lies in the satisfaction of its owners, and here, the Kia Telluride shines brightly. It has not only won over critics but has also cultivated remarkable loyalty among its owners, who consistently praise its attributes. The Telluride regularly achieves top marks in KBB’s owner-satisfaction surveys, with drivers commending its ride comfort, generous interior space, and robust quality performance.

Owners repeatedly report that the Telluride surpasses their expectations for both quality and features, making it a vehicle they are proud to share and recommend to others. This consistent exceeding of owner expectations is a testament to Kia’s commitment to delivering a well-made and intelligently designed SUV that genuinely enhances the ownership experience, fulfilling and often surpassing the needs of its target audience.

The overwhelming demand for the Telluride has, at times, led to quick dealership turnarounds, indicating its hot commodity status. Yet, even with this intense demand, Kia has maintained a steadfast commitment to quality. The brand has vowed to never let its high standards slip, ensuring that every Telluride produced continues to meet the Korean automaker’s rigorous benchmarks for excellence, thereby sustaining strong sales growth and customer confidence.

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Brand: Kia Model: Telluride
Price: $38,471 Mileage: 42,622 mi.

“Kia Telluride” by TastyPoutine is licensed under CC BY-SA 3.0

13. **Strategic Role in Kia’s Brand Transformation: From Budget to Premium**The Kia Telluride has played an unequivocally pivotal role in fundamentally transforming Kia’s brand image, shifting perceptions from a ‘budget’ to a ‘premium’ player in the automotive market. As described by Eric Watson, Kia America’s vice president of sales, the Telluride represented an ‘aha moment’ for the brand, significantly redefining its identity and attracting a different, more discerning type of customer.

This evolution is not merely superficial; it is deeply ingrained in the vehicle’s design and features. The inclusion of an upscale, premium interior, often compared to more expensive luxury SUVs, along with advanced systems like the Kia Drive Wise suite, exemplifies this premiumization. Such higher-end features are critical, as they command price premiums, significantly improve customer retention, and ultimately boost the brand’s profit margins.

The Telluride has successfully redefined consumer expectations of what a Kia vehicle can be, proving that a compelling package of sophisticated design, robust capability, and cutting-edge technology can be delivered without compromising accessibility or long-term value. It stands as a beacon for the brand, embodying a deliberate approach to understanding and meeting the evolving demands of North American drivers, and solidifying Kia’s position in the premium segment.

Buying a high-performing used car >>>
Brand: Kia Model: Telluride
Price: $38,471 Mileage: 42,622 mi.

“Kia Telluride DSC 8226” by Alexander Migl is licensed under CC BY-SA 4.0

14. **Future-Proofing with EV Integration and Sustained Market Leadership: The Road Ahead**The Kia Telluride’s future looks as bright as its present, with Kia strategically preparing for evolving market demands, particularly in electrification. While its current 3.8L V6 engine continues to dominate sales, Kia’s EV strategy includes the highly anticipated Telluride Hybrid. This electrified variant is poised to tap into the growing demand for sustainable SUVs, leveraging Kia’s broader EV ecosystem and addressing common EV owner frustrations around charging and software.

Even as the current first-generation Telluride continues its strong performance, a new generation is on the horizon. The upcoming 2027 model is described as a major design and engineering update, set to maintain its signature boxy proportions while integrating elements from Kia’s latest design language, notably from the EV9. It is expected to share powertrains with its corporate sibling, the Hyundai Palisade, including a naturally aspirated 3.5-liter V6 and a significant new hybrid configuration that combines a turbocharged 2.5-liter four-cylinder with dual electric motors for an impressive 329 horsepower and a target of 30 mpg.

Anticipating segment trends, the next-gen Telluride is also likely to grow slightly in all directions, mirroring the Palisade’s dimensional expansion. This increase in length and wheelbase will further enhance third-row comfort and overall cabin space, reinforcing its substantial road presence and interior flexibility. Kia’s careful pacing strategy aims to extend the Telluride’s dominance without disrupting its current momentum, ensuring it remains a pivotal model in its lineup.

The midsize three-row SUV segment continues to grow at approximately 5% annually, and the Telluride, with its sustained quality leadership and forthcoming innovations, is exceptionally well-positioned to capitalize on this expansion. It’s not just leading the segment; it’s actively redefining what a mid-size SUV can be, cementing its status as a core pillar of Kia’s equity growth and promising continued success rooted in understanding and meeting consumer demands. Investors should view dips in Kia’s stock as buying opportunities, especially as the Telluride’s legacy of reliability and J.D. Power recognition fuels long-term demand.

**Conclusion: A Winning Formula that Redefines Expectations**

The Kia Telluride’s ascent to champion of the SUV segment is no mere coincidence; it is the culmination of a meticulously executed strategy that continues to resonate powerfully with drivers and industry experts alike. From its bold, distinctive design and spacious, versatile interior to its state-of-the-art technology and exceptional value, the Telluride consistently delivers on multiple fronts. It has successfully blended rugged capability with an upscale experience, making it an easy recommendation for families seeking reliability, adventurers craving a well-equipped companion, or simply anyone who appreciates a vehicle built with uncompromising quality and value.

Buying a high-performing used car >>>
Brand: Kia Model: Telluride
Price: $38,471 Mileage: 42,622 mi.

As more drivers discover the profound depth of what the Telluride has to offer, its impact extends beyond mere sales figures. This SUV isn’t just leading its segment; it’s actively redefining expectations for what a mid-size SUV can and should be. It represents a pivotal ‘aha moment’ for Kia, transforming brand perception and establishing a new benchmark for style, substance, and affordability in a fiercely competitive market. The Telluride is, without a doubt, the kind of vehicle that garners universal acclaim, proving itself to be an excellent choice for a wide array of discerning buyers.