We are buying a new car this summer, and have pretty much decided on a minivan. Baby #2 is due in July, we are pretty sure we want #3 in the next 2-3 years, and we often need room for our large dog as well. We aren't huge SUV people. I hate how horrible they are on gas mileage and the environment. However, we'd be willing to look at a small or mid-size SUV with decent gas mileage and third row seating. Does this even exist, or are we better off with a minivan?

On our way to 3 under 4!
DD1 1/22/09
DD2 7/16/10
Baby Boy Due This Summer!
Re: What's a good alternative to a minivan (for 2-3 kids + dog)?
We have an Envoy, plus 2 kids (will be adding a 3rd eventually) and a dog. I have a car kennel that I bought off Ebay for the dog in the back (she's med. size GSP)
You're better off with a minivan. A small SUV is going to do nothing for the amount of humans/pet you're putting into your vehicle........
Unless you're going to get a LARGE SUV (think Denali, Suburban, Escalade, etc.) your best bet is the minivan. The minivan is also more "family friendly" for small kids.
This! We have a Buick Rendevous and while I love, love, love it it isn't as great with the back row down. We can fit the kids just fine but the dog would never fit. In fact the back cargo space can now just barely fit an umbrella stroller. If you planning a third child before you would buy a new car I'd go with a minivan. We are fine now but as the kids get older we'll get a minivan so we can cart things with us. Our plan is when DH's car dies we'll get a minivan to replace it.
Have you looked into a GMC Acadia?
I have an SUV that gets 22 mpg (Nissan Xterra) and have loved it for the past 6 years, I can't imagine giving it up but alas, it does NOT have a third row of seats and we need it desperately as we always have friends/family in town and we plan to add kids and a dog to our family!
There are several great Hybrid larger SUVs like the Tahoe, Equinox, Escalade, AcuraRDX, Dodge Durango, Lexus RX400h, Ford Escape, Saturn VUE, GMC Yukon, BMWX5, Toyota Hylander and several others that get excellent gas mileage and have the space we are looking for. Most are in your budget if you don't trick them out too much.
I personally will not be going the minivan route myself but do have minivan-envy at times when I ride with friends that have one as they have so many comfy ammenities!
Good luck choosing!
eclaire 9.10.06 diggy 6.2.11
I refuse to be a mini-van family. We had one growing up and I hated every moment of being carted around in a loser cruiser. I won't put my children through the embarrassment.
And don't be fooled about the gas consumption - mini vans don't exactly have the greatest gas mileage either. I would look at a lot of the options other posts have given (I really want a Saturn Outlook - its a big SUV without being huge) and do some research.