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Luxury leather, a quiet ride in regal isolation, decent handling, a full cadre of power features, a superb audio system.

You call this a truck?

And this is one of the big boys, too, a full-size GMC Yukon, decked out like a Hyannis Port yacht. Though shorter by 20 inches than the Yukon XL (nee Suburban), Yukon is still a formidable craft, weighing in at 21/2 tons in four-wheel-drive trim.

Yet despite its size, heft and humble pickup-truck origin, Yukon displays the driving attributes of a posh automobile. It’s the kind of vehicle that lures traditional luxury-car drivers to drop off their Cadillacs at the GMC dealer and drive home in a big, boxy truck.

With its full load of gear, the test Yukon breaks the bank at more than $41,000. But thanks to the awesome generosity of the Arizona Legislature, this is the kind of big truck that people have been “converting” to alternative fuel and driving away for a pittance.

So Yukons, Yukon XLs, Tahoes, Suburbans and other high-end heavyweights have been flying out the doors of auto dealers around the state. Latecomers now face a significant waiting period to get their cut-rate rides. Such a deal. Your tax dollars at work.

But it’s not Yukon’s fault. Based on the GMC Sierra and Chevrolet Silverado pickups, which came out in 1999 with new structures and significant improvements in ride and performance, Yukon is a fine piece of engineering. It succeeds handily in its contradictory tasks: to drive as well as a car without losing the power and tough image of a truck.

Yukon was all new for 2000 and mostly carries over for 2001, although for the new model year the top-drawer Denali version has a bunch of new toys and equipment.

One of the most obvious new features of the standard Yukon is the third seat in back, adding room for three more humans, though they need to be small and nimble to climb back there and feel comfortable. And the third seat eats up most of the cargo space.

Some other improvements: stiffer frame members for less noise and better handling; an all new suspension that includes a five-link coil-spring rear suspension; more headroom and legroom, especially in the front seats; quieter air-conditioning; stronger, more efficient V-8 engines; more towing capacity; smaller turning radius; and a nicely updated body design.

The engine in the test truck was the same 5.3-liter V-8 that I found anemic in a drive up to Payson during a recent road test of the marginally heavier Yukon XL. The shorter Yukon felt quicker than its sibling, but I didn’t take it on a similar hilly trip. Yukon’s gas mileage was about as bad as the XL’s.

The rich leather interior of the upgraded test Yukon had me wondering why anyone would put up the extra dough for a Denali (unless taxpayers are buying half of it). But the hard-plastic dashboard straight out of the Sierra pickup is jarringly cheap in contrast.

The low-mileage t est truck felt wonderfully tight and competent, though there was an annoying rattle in the driver’s door, and the brakes had a vibrant squeal.

The priciest option on the test Yukon was a $2,685 package of convenience and luxury features, including the OnStar communications system. There was also a sunroof at $995, the folding rear seat, another $995; an engine upgrade from the standard 4.8-liter engine, $700; $325 for running boards; and assorted charges for some mechanical upgrades for trailering and off-highway driving.

Surveys show that despite Yukon’s macho image, the majority of drivers end up being women, mainly moms, which explains the strong engineering effort that makes the big truck as smooth and pleasant to drive as a sedan. The improvements are impressive, and even without Arizona’s giveaway program, the Yukon is quite an attractive package.

2001 GMC Yukon

Vehicle type: Eight-passenger, four-door sport utility vehicle, rear/four- wheel drive.

Base price: $34,605.

Price as tested: $41,477.

Engine: 5.3-liter V-8, 285 hp at 5,200 rpm, 325 lb-ft. of torque at 4,000 rpm.

Transmission: Four-speed automatic.

Curb weight: 5,050 lbs.

Wheelbase: 116 inches.

EPA mileage: 14 city, 17 highway.

Highs: Newfound refinement. Nice ride, handling. Spacious exterior.

Lows: Mediocre gas mileage.