If the Azera and Santa Fe are indicators of what’s to come from Hyundai in the years ahead, Honda and Toyota had better keep them in their peripheral vision. The latest Hyundai to hit our lot was the redesigned 2007 Santa Fe and I must admit, I am truly impressed. Considering the price range, the Santa Fe has plenty to offer, in many ways exceeding what Honda and Toyota can provide. The redesigned Santa Fe is comfortable, quiet and conveys a feeling of luxury not found in the competing models.

Design is subjective but the 2007 Hyundai Santa Fe has a pleasing look that is neither drastic nor plain. The design carries a rugged yet upscale look that should appeal to SUV buyers of all ages. Disappointingly, exterior panel fitment needs improvement. Our test vehicle – among the first off the line -- had varying seams for the tailgate and the doors as well as slight overhang variances at the front of the hood.

Inside, the Santa Fe’s overall look and feel is definitely upscale. Our Santa Fe Limited was trimmed out with nice leather, faux wood and aluminum trim accented by floor mats that could compete with designer home carpeting. One area I took issue with was the seating position. I had difficulty finding a comfortable position, feeling like I was sitting either too high or too close. I have no complaints regarding the seats themselves, which offer good cushioning and support, and which on our test vehicle were covered in leather that was soft and pliable. Comfort continues into the back seat with reclining seat backs and lots of room from head to toe. The 60/40 split second-row seat doesn’t quite fold flat but does expand cargo area nicely. A third row of seats is optional – although I can’t see that they’d be comfortable.

The Santa Fe’s new chassis and suspension setup delivers a ride that is smooth and quiet with the exception of a little wind noise coming off the windshield and slight tire noise from the front wheels. Braking is adequate but more feedback would be appreciated. I did find the steering to be solid, conveying good feel at all speeds. Acceleration from the 3.3-liter V6 gets the Santa Fe up to speed quickly and the five-speed transmission produces seamless shifts.

When you look at the fact that a Hyundai Santa Fe with everything on it hovers in the neighborhood of $28,000, it’s quite a value. Hyundai looks to be serious about giving Toyota and Honda a run for the money and from what I see they’re right on track.