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2026 Subaru Outback vs. All-New 2026 Jeep Cherokee: Which SUV Wins in Lancaster County?
By Lancaster County Motors Subaru | Reviewed by Jonathan Furukawa, General Sales Manager, and Ross Rodruan, General Manager | Last updated August 2026
Quick Answer
The Jeep Cherokee is back. After being discontinued in February 2023, Jeep revealed an all-new, hybrid-only Cherokee in August 2025, with the first units arriving at dealers in January 2026. That all-new 2026 Cherokee Laredo starts at $39,995, about $3,550 more than the 2026 Subaru Outback Premium's $36,445, and its standard hybrid powertrain delivers strong efficiency at 37 mpg combined versus the Outback's 28 mpg combined, along with more horsepower (210 hp vs. 180 hp). The Outback's advantage is a track record: it's a proven, well-established nameplate with decades of ownership data, a confirmed 2026 IIHS Top Safety Pick+ award, more ground clearance (8.7 in. vs. 8.0 in.), and more maximum cargo room (75.7 cu. ft. vs. 68.3 cu. ft.), while the redesigned Cherokee is still awaiting its first IIHS crash-test results. For Lancaster County shoppers who want a known quantity backed by years of real-world reliability data, the Outback is the safer bet today; for those excited about Jeep's new hybrid technology and don't mind being early adopters of a freshly relaunched model, the Cherokee is a genuinely interesting new option.
Few nameplates in the industry have a comeback story like the 2026 Jeep Cherokee. Discontinued in February 2023 after nearly a decade on the market, Cherokee returned in August 2025 as an all-new, hybrid-only model, with dealer arrivals beginning in January 2026. That makes this one of the freshest matchups in the segment. Below, we compare pricing, efficiency, safety, cargo, technology, and total cost of ownership using the latest available manufacturer and EPA data, along with candid perspective from our own General Sales Manager and General Manager.
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2026 Subaru Outback vs. Jeep Cherokee: At a Glance
This comparison uses the Outback Premium and the Cherokee Laredo, the most comparable entry trims of each model. Both come with all-wheel drive standard.
| Feature | 2026 Subaru Outback Premium | 2026 Jeep Cherokee Laredo |
|---|---|---|
| Starting MSRP* | $36,445 | $39,995 |
| Model Status | Established nameplate, decades of ownership data | All-new for 2026; relaunched after 2023 discontinuation |
| Powertrain | 2.5L 4-cylinder, gas | Standard hybrid |
| Horsepower | 180 hp | 210 hp |
| EPA Fuel Economy (combined) | 28 mpg | 37 mpg |
| Drivetrain | Symmetrical AWD, standard | AWD, standard |
| Ground Clearance | 8.7 in. | 8.0 in. |
| Max Cargo Space (seats folded) | 75.7 cu. ft. | 68.3 cu. ft. |
| 2026 IIHS Rating | Top Safety Pick+ | Not yet rated (new model) |
| Basic / Powertrain Warranty | 3 yr/36,000 mi. / 5 yr/60,000 mi. | 3 yr/36,000 mi. / 5 yr/60,000 mi. |
| Reliability Track Record | Extensive, decades of real-world data | None yet; all-new platform for 2026 |
*Starting MSRP includes destination charge; excludes tax, title, license and dealer fees. Specs shown reflect manufacturer and EPA data available as of August 2026 and are subject to change; Stellantis has adjusted MSRPs shortly after launch on other recent redesigns.
Price & Value: A Familiar Nameplate vs. a Fresh Start
The 2026 Jeep Cherokee Laredo starts at $39,995, about $3,550 more than the 2026 Outback Premium's $36,445. That premium buys you Jeep's brand-new hybrid powertrain and a genuinely fresh design, but it's worth noting for shoppers watching their budget that pricing on newly relaunched models can move. Stellantis has adjusted MSRPs on other recent redesigns shortly after launch, so it's worth confirming current pricing directly before you commit.
"The Cherokee's comeback is a great story, and I understand why people are curious about it. But curiosity and confidence are two different things, and confidence is usually built from years of real ownership data, which the Outback has in spades and the new Cherokee simply hasn't had time to earn yet."Jonathan Furukawa, General Sales Manager, Lancaster County Motors Subaru
Performance & Fuel Economy
This is the Cherokee's strongest argument. Its standard hybrid powertrain produces 210 horsepower, ahead of the Outback's 180 hp, and returns an EPA-estimated 37 mpg combined, a significant improvement over the Outback's 28 mpg combined. For drivers whose priority is minimizing fuel costs and maximizing power from a standard (not optional) powertrain, the new Cherokee's hybrid system is a legitimately impressive piece of engineering, and we say so plainly.
Interior, Cargo & Comfort
The Outback offers more maximum cargo room with the seats folded, 75.7 cubic feet versus the Cherokee's 68.3 cubic feet, and sits slightly higher off the ground at 8.7 inches of ground clearance versus the Cherokee's 8.0 inches. Both cabins are new or recently updated with modern materials and technology; the Cherokee's interior in particular has been praised in early reviews for its clean, driver-focused layout.
Safety Ratings & Driver-Assist Technology
The 2026 Subaru Outback earned an IIHS Top Safety Pick+ award, the institute's highest honor. The all-new 2026 Jeep Cherokee has not yet been crash-tested by IIHS, simply because it's too new; independent testing organizations typically need a model to be on sale for a period of time before publishing results. That's not a knock on the Cherokee's engineering, but it is a meaningful, honest distinction for safety-conscious shoppers: one vehicle has a confirmed, current-year top safety rating, and the other does not yet have any rating at all.
"I always tell customers not to assume a brand-new redesign automatically inherits the safety rating of the model it replaced, because it doesn't. The new Cherokee has to earn its own rating from scratch, and until that testing is published, the Outback's confirmed Top Safety Pick Plus for 2026 is simply the more verifiable choice today."Ross Rodruan, General Manager, Lancaster County Motors Subaru
Technology
Both vehicles come well equipped with modern infotainment and connectivity features standard at this trim level. The Cherokee's technology suite is entirely new for 2026, built around Jeep's latest Uconnect software, while the Outback's 12.1-inch touchscreen and EyeSight suite represent a mature, well-refined system with years of over-the-air updates and dealer familiarity behind it.
Reliability, Warranty & Total Cost of Ownership
Both brands back these vehicles with matching 3-year/36,000-mile basic and 5-year/60,000-mile powertrain warranties on paper. But warranty coverage and proven reliability are two different things: the Outback benefits from decades of real-world ownership data across millions of vehicles, while the all-new 2026 Cherokee, having just returned to dealer lots in January 2026, has no long-term reliability track record yet, positive or negative. That's simply a fact of being a brand-new model, and it's worth factoring into any total-cost-of-ownership decision.
Which One Is Right for You?
| If you want... | Choose... |
|---|---|
| A confirmed, current-year IIHS Top Safety Pick+ rating | 2026 Subaru Outback |
| Decades of proven reliability data | 2026 Subaru Outback |
| More maximum cargo space and ground clearance | 2026 Subaru Outback |
| The lower starting price | 2026 Subaru Outback |
| The best fuel economy and more horsepower, standard | 2026 Jeep Cherokee |
| A brand-new design and the latest hybrid technology | 2026 Jeep Cherokee |
See the 2026 Outback in Person at Lancaster County Motors Subaru
Browse current inventory or schedule a test drive at our Lancaster, PA showroom, 1705 Manheim Pike.
Why Buy from Lancaster County Motors Subaru
Lancaster County Motors Subaru has helped Lancaster County drivers choose the right vehicle for their roads, their families, and their budgets for years. Our sales and service teams work with the Outback lineup every day, from the first test drive through years of scheduled maintenance, which gives us a genuine, ground-level view of how these vehicles hold up long after the new-car smell fades.
"We've been part of the Lancaster County community for years, and we want every customer walking off our lot to feel confident they made the right choice, whether that's an Outback or something else. That's the kind of straight talk we think this market deserves."Ross Rodruan, General Manager, Lancaster County Motors Subaru
Frequently Asked Questions
Is the Jeep Cherokee back for 2026?
Yes. Jeep discontinued the Cherokee in February 2023, then revealed an all-new, hybrid-only version in August 2025. The redesigned 2026 Cherokee began arriving at dealerships in January 2026.
Is the 2026 Jeep Cherokee a hybrid?
Yes. The redesigned 2026 Cherokee is offered exclusively as a hybrid, rated at an EPA-estimated 37 mpg combined, well ahead of the Subaru Outback's 28 mpg combined.
Which is cheaper, the 2026 Subaru Outback or the 2026 Jeep Cherokee?
The Subaru Outback Premium starts at $36,445, about $3,550 less than the 2026 Jeep Cherokee Laredo's $39,995 starting price.
Has the 2026 Jeep Cherokee been crash tested by IIHS?
Not yet. As an all-new model that just reached dealerships in January 2026, the Cherokee has not yet received IIHS test results. The 2026 Subaru Outback has already earned a Top Safety Pick+ award, the institute's highest distinction.
Which SUV has more cargo space, the Outback or the Cherokee?
The Subaru Outback offers more maximum cargo space with the seats folded down: 75.7 cubic feet compared to the Jeep Cherokee's 68.3 cubic feet.
Does the Jeep Cherokee have a reliability track record?
Not yet under its current design. The 2026 Cherokee is an all-new platform that only reached dealers in January 2026, so it does not yet have the kind of long-term reliability data that the well-established Subaru Outback has built up over decades.
Where can I see 2026 Subaru Outback inventory near Lancaster, PA?
You can view current 2026 Outback inventory at Lancaster County Motors Subaru, 1705 Manheim Pike, Lancaster, PA 17601, online at our Outback inventory page, or by calling (717) 381-2871.
About Our Experts
 | Ross Rodruan, General Manager Ross oversees dealership operations at Lancaster County Motors Subaru, including the sales and service departments, giving him a long-term view of how Subaru vehicles perform for local owners well past the day they drive off the lot. |
 | Jonathan Furukawa, General Sales Manager Jonathan leads the sales team at Lancaster County Motors Subaru, where he works directly with Lancaster County shoppers every day to match them with the right Subaru model and trim for their needs and budget. |
Pricing, specifications and ratings referenced above reflect publicly available manufacturer, EPA and IIHS data as of August 2026 and are subject to change without notice. Starting MSRP includes destination charge and excludes tax, title, license and dealer fees. Contact Lancaster County Motors Subaru for current pricing, incentives and availability.
