Xterra is the best SUV in the $25,000–$34,999 price range, according to the Northwest Automotive Press Association (NWAPA).

Xterra was chosen as one of the seven category winners in the 2007 Northwest Sport Utility Vehicle of the Year Competition. The event — known as Mudfest — has been conducted for 14 years. Twenty automotive journalists from throughout the region drove and evaluated 28 different 2007 and 2008 model year SUVs during the two-day competition.

Sport utility vehicles are a mainstay of the Pacific Northwest automotive market, and journalists from this region are among the most knowledgeable critics of this segment. Mudfest is the most widely recognized event of its kind in North America. It allows member journalists to test the performance, handling, and braking, as well as the on-road and off-road demeanor, of each competing SUV.

Off-road testing includes hill-climbing and descent abilities, as well as ride comfort and low-range handling. Pavement tests include a slalom, curve handling, and emergency braking maneuvers. Journalists perform additional real-world tests over area roads and highways. Packaging, versatility, and overall value for money are evaluated through a comprehensive scoring procedure. The winners are then selected based on the scores earned from all the journalists in attendance.