2008 Hyundai Veracruz GLS AWD Leather Sunroof

Hyundai probably didn't see today's skyrocketing gas prices when it first had the idea to top its range with the largest SUV it has ever produced, the Veracruz.

It means a rather large appetite for regular fuel, but it does carry seven passengers and comes very well equipped – at least my $46,000 tester did.

Now in its second model year for 2008, the Veracruz is built on a stretched version of the redesigned Santa Fe. There are three trim lines – GL, GLS and my tester, the Limited – and all use a 3.8-L V6 engine, mated to a six-speed automatic transmission with manual shift mode.

The GL, a new base model added for 2008, is front-wheel-drive only. The other two models come standard with an AWD system that runs primarily in front-wheel, but sends power to the rear wheels should it detect slippage.

Press a button on the dash and you can lock the system into AWD for extra traction; it'll revert to its automatic system once you go over 30 km/h. But should your speed drop, it'll go back again into its locked mode.

Unlike the Santa Fe, which offers a third row of seats as an option, all Veracruz models come standard with seven-passenger seating. The third row is tight, especially the headroom, but I've definitely been in worse; adults will prefer the other seats, of course, but a cross-city trip back there isn't out of the question.

Hyundai has done its homework on what makes a luxury cabin. The Limited comes standard with "Premium Saddle Leather," which matches brown cow with black plastic, and a good-looking woodgrain strip across the dash.

The interior lighting is gorgeous at night: everything is blue, including a "mood light" that can be switched on to light up the console, and spiffy illuminated door sill plates that spell out the vehicle's name. There's even footwell lighting that glows when the vehicle's in Park, and then gently fades out as you drive away.

But form can often overshadow function: the blue writing on the rows of identical silver centre-stack buttons can be very hard to read in daylight, and it takes too much attention away from the road whenever you want to adjust the climate control or stereo.

Other higher-end features that differentiate the Limited from the two lower models include a six-CD stereo, rear-seat DVD system, power tilt and telescopic wheel, power-adjustable pedals, garage door opener, power passenger seat, auto-dimming side mirrors with puddle lamps, LED taillights, keyless start and a power liftgate.

That's a fair bit of equipment given its base $46,295 when put up against its competitors, but as with most Canadian cars, it falls short of its U.S. equivalent, where you'll only pay $37,250, including the DVD system that's optional there.

The American model can also be ordered with a navigation system that isn't available here, and all models can be had in FWD only.

Beautifully smooth and quiet on the highway, the Veracruz doesn't take as kindly to rougher roads; the suspension crashes and bangs over road imperfections, and sends the brunt of potholes into the cabin.

Centre feel is good and the steering is comfortably light without being too much so. The steering response could be sharper on hard turns, but since most drivers don't routinely take two tonnes of top-heavy SUV through the slalom, it probably won't be an issue.

The 3.8-L V6 is strong, but acceleration isn't linear; ask it for extra power on the highway, and it'll take a moment to downshift, and then take off like a scared rabbit.

The Veracruz's engine can be a bit growly on its way from a standstill up until about 80 km/h, when it smoothes out. It isn't unacceptably loud by any stretch of the imagination, but it doesn't sound quite as refined as some of its competition.

Cargo space depends on how many passengers you're carrying. With all three rows up, there's 34 cm of length, and with plenty of tie-downs but no grocery bag hooks. Fold the third row flat for 110 cm of length; drop the second row as well, and you've got 180 cm of carpeted cargo compartment. There's also a small storage box under the rear floor.

When Hyundai unveiled its upcoming Genesis sports sedan earlier this year, I asked a company representative why it didn't spin off a separate upscale brand for it, as Toyota did with Lexus. It seems it was a consideration, but it's an expensive step, and it can take a long time to establish a nameplate, even if it's associated with an existing company.

Time will tell if it was a good move; the Veracruz is a well-appointed vehicle, and Hyundai has made incredible progress in the last few years, but I'm wondering if the time is right for a full-size luxury hauler that bears the same name as the $9,995 Accent.

This will always be a low-volume unit – the reason why there are fewer option choices here than south of the border – and it will probably lose a few customers to its Santa Fe cousin, with its smaller, more fuel-efficient engine and lower price.

But should you like lavish features, there are enough of them here, at a price very much in line with our market, to put the Veracruz on the list.

I thought driving the Hyundai Veracruz would be like putting on a fat suit, its chunky dimensions making for a lumbering, clumsy drive. How wrong I was. The Veracruz is sprightly, light on its feet and agile for a big CUV.

I tested the loaded-to-the-gills Veracruz Limited. For $46,595, Hyundai wants you to think of it as your home away from home.

The Limited comes with a full blotter of standard features. The ones that put it a peck above the lower echelon GLS include a rear-mounted DVD screen, power-adjustable pedals, LED taillights, proximity key (no need to press a key fob, just press a button on the handle) and a power rear tailgate.

The juiced-up tailgate is a pretty addictive feature. Press a button on the key as you clomp toward the car burdened with goods and it glides open to welcome your parcels. It's a big, heavy door and the power assist is sweet.

A 3.8 L V6 producing 260 horsepower moves the Veracruz with authority; it's all the power one wants in a seven-passenger hauler. A six-speed automatic transmission is oily smooth, and one can dabble in manual mode by using the Shiftronic. I used it in stop and go highway traffic and it was mildly effective.

Most remarkable is the way Hyundai has muffled engine noise – at idle you can't hear it. Under acceleration it's barely audible: in the cabin, it's like you're wearing a noise-cancelling headset.

Hyundai took aim at Lexus and pledged to make it quieter than the RX 350. The car maker uses extra carpeting, foam padding, a steel plate under the engine, custom hood insulation – everything short of a bag full of marshmallows to make the Veracruz a temple of calm.

The ride is gently compliant, and smooth as Mornay sauce on good pavement. After all, who really wants to get bruised riding in a vehicle modeled after a boutique hotel (Hyundai's description).

Steering is light without being limp; handling is surprisingly sharp for such a beefy wedge of metal. Best of all are the brakes: they're macho, hauling the car down from speed with military force.

Between the sheets of metal, the Veracruz really pampers the weary traveller. The seats range from private-club comfy to useful. The driver's seat with multi-power adjustments, saddle leather and sculpted contours could be out of Ralph Lauren's living room. Head restraints for driver and passengers are perfectly designed – one tug and they snug up to your head. An obedient steering wheel lifts out of the way when exiting the car.

All three rows of seating have roof-mounted side curtain airbags.

From the roomy back seats, passengers can fiddle with their own DVD screen, climate controls and reading lights.

Even the third-row set-up, usually the outpost for jockeys and pre-teens, can accommodate reasonably sized adults with a BMI not exceeding 25. And there are reading lights for them too.

There are more cubbyholes in the Veracruz than a rolltop desk, so the anti-clutter club can keep things stowed.

The centre console has a "cool" compartment – a place to keep your carrots crisp, I guess. Overhead, a funny convex mirror just aft of the sunglass bin can be deployed. I thought it was for spying on kids and pets in the back, but Hyundai calls it a "conversation mirror" so you can engage in witty repartee with the bleacher seats.

Like a candle burning in a farmhouse window, Hyundai capitalizes on our love for light by putting them everywhere. There are map lights, mood lights, dome lights, puddle lights, ignition lights and a scuff plate light emblazoned with VERACRUZ in gas flame blue. Take that Lexus!

Some say the exterior styling of the Veracruz is bland. Hyundai calls it organic.

I think it's deftly restrained, and far better looking than some of its homely competitors. The 18-inch rims help the side view.

It is curious that this overachieving CUV is missing some of the expected frills of the segment, such as Bluetooth capability, GPS and auxiliary audio inputs. You also have to hunt for the all-wheel-drive switch, which is hidden by the steering wheel.

And I found it curious that a cabin beeper bleats every time reverse is engaged, but I suppose it's a gentle reminder for the absent-minded. The beeper gets agitated if you're about to squish something, but there is no backup camera.

Both the Limited and the GLS versions of the Veracruz have on-demand all-wheel drive.

The vehicle will switch to AWD if it determines you need it, otherwise, it motors about in the more fuel-efficient two-wheel drive.

But the lock button will also allow you to put the vehicle into AWD at your choice. I averaged about 13.9 litres per 100 km in combined city-highway driving.

If you forgo some of the frills and AWD, the entry level Veracruz is still lavishly equipped for $35,995. All models get traction and stability control, and safety ratings are admirable.

It's fun to see Hyundai take cheeky aim at Lexus as it ladles on the luxury in the crossover category.

After a week patrolling in the Limited, I'd gladly spend more time in Veracruz control.