The XSE positioning inside the Highlander lineup
The XSE is Toyota's sport-appearance trim of the Highlander — added for 2021 and refined for the fourth-generation redesign that debuted for 2023 (chassis code XU70). It slots above the L, LE, and XLE, and below Limited and Platinum. What XSE gets that others don't: unique 20-inch machined-finish wheels, blacked-out exterior trim, a sport-tuned suspension with re-valved dampers, ventilated front seats, a standard dual-panel panoramic moonroof, and a distinct front fascia with piano-black inserts. What it doesn't get versus Limited: perforated semi-aniline leather, ambient interior lighting, or the full 12.3" digital instrument cluster.
The 2023 Highlander gained the most meaningful mechanical update in a decade. The naturally aspirated 3.5-liter V6 (2GR-FKS) that had powered every Highlander since 2017 was retired across the entire non-hybrid lineup and replaced by a 2.4-liter turbocharged four-cylinder — the T24A-FTS. Peak output is 265 horsepower at 6,000 rpm and 309 lb-ft of torque from 1,700 to 3,600 rpm, paired with an 8-speed direct-shift automatic (UB80F). Max towing stayed at 5,000 pounds when equipped with the tow package. On the used market in Lebanon and Central PA, XSE has become the enthusiast-family sweet spot — it looks like a Limited from twenty feet away without the Limited premium.
Powertrain: what the switch to turbo-four means in daily driving
People hear "four-cylinder in a three-row SUV" and get nervous. In practice, the T24A-FTS makes almost identical horsepower to the outgoing V6 (265 vs. 295) and 45 more lb-ft of torque, arriving 3,000 rpm earlier. The result on the road is that the 2023 Highlander feels quicker in the situations that actually matter — merging onto I-81 at Grantville, passing a coal truck on route 322 heading toward State College, or pulling a loaded family up the grade out of Jonestown. Zero-to-sixty runs in the mid-7-second range, respectable for a 4,595-pound AWD SUV.
The 8-speed automatic hunts noticeably less than the V6's did between 5th and 6th, and the tuning is closer to a European calibration — it holds gears in Sport mode long enough to be useful. AWD (standard on XSE) uses a rear-biased Dynamic Torque Vectoring system that can send up to 50% of drive to the rear axle and split it between the rear wheels, which genuinely helps on wet Lebanon County back roads.
Real-world MPG in Central PA driving
EPA rates the 2023 Highlander XSE AWD at 21 city / 28 highway / 24 combined. In real-world mixed driving between Lebanon, Hershey, and Harrisburg I saw 24–26 combined all summer, and a highway-heavy trip to Baltimore returned 30.1 mpg on the trip computer. That's not hybrid territory — the Highlander Hybrid (2.5L Atkinson-cycle four with 245 combined system horsepower) does 35 mpg combined — but it is a real 3–5 mpg improvement over the outgoing V6.
On the fuel-cost math in central PA (regular unleaded around $3.30–$3.45 a gallon for most of 2026), driving 12,000 miles a year at 25 mpg costs about $1,620. The Hybrid at 34 real-world combined costs about $1,190 — a $430/year difference. Over five years that's $2,150. If a used Hybrid is more than $2,500 above a comparable non-hybrid XSE, the math favors the turbo four. The Highlander is a rare case where the hybrid premium doesn't automatically win.
The third row — honest expectations
Yes, it's usable — for kids and short adults on short-to-medium trips. Adult passengers over 5'8" won't be comfortable back there for a drive to the Poconos. For the elementary school carpool, the neighborhood friend, and grandparent duty from Hershey to Lebanon, it works. Access is easier than the Pilot's: the second-row captain's chairs slide and tilt forward with a single lever that a nine-year-old can operate. The trade-off versus a Honda Pilot or Chevy Traverse is width — the Highlander is 76 inches wide, and second-row three-across with two child seats plus an adult in the middle is tight.
Cargo numbers matter too. Behind the third row you get 16 cubic feet — a full-week grocery run for a family of five, but not a Costco flatbed cart. Fold the third row and you get 48 cubic feet. All seats down: 84 cubic feet. That's less than a Pilot (87) or a Traverse (98) but more than enough for a summer trip to Ocean City with beach chairs, coolers, and boogie boards.
Interior, tech, and the parts that feel expensive
2023 is the year the Highlander's interior finally caught up to the class. XSE gets a 12.3-inch touchscreen with wireless Apple CarPlay and Android Auto standard, a wireless charging pad, four USB-C ports, and a 12-speaker JBL premium audio system. The materials on the upper dash, door tops, and armrest are legitimately soft-touch. Panel gaps are tight. Toyota's new infotainment (built on the same platform as the Tundra and Sequoia) is responsive and doesn't lag the way the previous Entune generation did.
Ventilated front seats are the feature XSE owners rave about after their first Central PA August. Heated seats and heated steering wheel are also standard. The digital gauge cluster is a 7-inch screen inside an analog housing — not the full 12.3-inch cluster of the Limited, but readable and clean. What's missing that Limited buyers get: perforated semi-aniline leather (XSE uses SofTex, Toyota's synthetic leather, which is durable and easy to clean but doesn't breathe the same), 11-speaker JBL vs 12, and a heads-up display.
Safety: TSS 3.0 works and doesn't nag
Every 2023 Highlander comes with Toyota Safety Sense 3.0 standard: full-speed adaptive cruise control, lane-tracing assist that centers you in the lane (not just lane departure warning), automatic emergency braking with pedestrian and cyclist detection, blind-spot monitoring, rear cross-traffic alert with automatic braking, and automatic high beams. The IIHS gave the 2023 Highlander a Top Safety Pick+ rating.
The lane-centering is subtle enough that it doesn't fight the driver on winding PA back roads. Adaptive cruise handles 70 mph interstate stop-and-go around Harrisburg without the harsh braking you get from earlier Toyota systems. It's one of the better implementations in the class.
Central PA winter, salt, and long-term durability
The single best thing you can do for any used SUV in Lebanon County is wash the undercarriage once a month from November through March. A $10 gas-station wash pays for itself ten times over in avoided brake-line and exhaust-hanger corrosion.
Central PA winters mean PennDOT salt from Thanksgiving through St. Patrick's Day. The Highlander's underbody has factory rust-inhibiting coating, and the front and rear subframes are galvanized in high-corrosion areas — but 2023 is now three winters deep, and I'm already seeing surface flash rust on brake rotors and rear axle housings on units traded in from farms and rural routes. Not structural, but a leading indicator of neglect.
The T24A-FTS turbo starts and warms up fast in cold weather — the small displacement helps. AWD engages smoothly. The one weather-related complaint I hear from XSE owners specifically: the 20-inch wheels with 235/55R20 tires are less forgiving than the LE/XLE's 18s on frost-heaved county roads. If you commute route 501 or 897 daily, factor $1,000–$1,400 for a dedicated set of 18-inch winter wheels and snow tires — a smart investment that also protects the summer wheels.
Reliability outlook and known issues
The T24A-FTS is shared with the Lexus NX 350, RX 350, and Highlander/Grand Highlander. Early data through 100,000 miles is very good — no widespread engine-out failures, no timing-chain issues, and the closed-deck block architecture is closely related to Toyota's proven long-block designs. The 8-speed UB80F automatic is the same unit used in the Camry and Avalon since 2018 with an outstanding record.
Known items to verify on any used 2023 Highlander:
- Fuel pump recall (early production 2023 models) — verify completion via VIN on Toyota's owner site.
- Software update for the 12.3" touchscreen — early builds had occasional Bluetooth dropouts; dealers reflash under warranty.
- Rear differential seal weep on a handful of AWD units — inspect for oil residue on the rear diff housing.
- Panoramic moonroof drain tubes — a $0 preventive-maintenance item that avoids a $2,000 headliner repair down the road.
Long-term (200k+) turbo longevity is still an open question — nobody has 200,000 miles on a 2023 turbo yet — but the engineering fundamentals (low compression ratio, robust cooling, proven bottom end) suggest it will hold up.
Who should buy the XSE — and who shouldn't
Buy the XSE if: you have a family of 4–5, you want the dual moonroof and sport styling, you value ventilated seats in summer, and you don't need genuine perforated leather or the ambient lighting to justify the Limited premium. It's the trim that looks the best on the outside without paying for the trim tax.
Skip the XSE if: you regularly haul three across the second row (Pilot has more width), you tow more than 5,000 pounds (look at Sequoia or a full-size), or you need the absolute best fuel economy possible — in which case the Hybrid is the answer. On the used market in central PA in 2026, a 2023 XSE AWD with 20,000–40,000 miles typically runs $34,000–$38,000. That's a legitimate value versus a comparable Explorer Platinum, Traverse RS, or Pathfinder SL — none of which have Toyota's resale curve behind them.
Verdict and next step
The 2023 Highlander XSE is the trim I'd recommend to a Lebanon family that wants a modern three-row without hybrid complexity or luxury-brand pricing. The turbo four is a genuine improvement, the interior finally competes, and Toyota's safety and reliability record removes most of the tail risk. It's not perfect — the third row is snug, the 20s are firm on rough county roads, and long-term turbo data is still being written — but the fundamentals are strong.
We currently have a 2023 Highlander XSE on our Lebanon lot. See the full listing, get pre-approved for financing, or call (717) 673-1484 to schedule a test drive. If you're comparing against a Pilot or a Traverse, we're happy to walk you through the trade-offs honestly — even if that means pointing you toward something we don't have on the lot.
