BMW's New, Improved X5

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The 2005 version was blissfully i-Drive-free, but the powers that be at BMW are sticking to their guns and inserting the onboard haptic computer system despite near-universal irritation with it. Unlike the so-called Bangle Butt, the rear-end styling named for BMW designer Chris Bangle, which was introduced on the 2002 BMW 7 Series to much gnashing of critical teeth, the i-Drive hasn't won over the majority of its detractors. And it hasn't evolved the design language, as the Bangle Butt has. Today a pre-Bangle BMW looks dated, while the i-Drive ranks up there with car alarms among ideas that were misguided from the start.

The reason, for the benefit of readers who haven't experienced it firsthand, is that the i-Drive is so needlessly complicated. I have now driven many BMWs so equipped and no longer feel so befuddled trying to use the device. Now I just resent it, because there are plenty of other—and cheaper—cars that allow me to perform the same tasks, such as finding a radio station, locating nearby points of interest, and turning on the air conditioner, far more easily.

On top of that, the navigation is strangely unintuitive. Compared with, say, the $26,000 Ford Explorer, which has an excellent navigation system, BMW's is almost too busy to bother with. Good luck if you get lost and you've never used it before.

The problem stems from the curious desire of marques such as BMW and Mercedes-Benz, which made their reputations on the excellence that their engineers displayed in creating cars that drove magnificently, to also become recognized for developing cutting-edge technology. In the luxury auto market, such technology can be highly prized because it allows one brand to differentiate itself from the competition and emphasize its exclusivity. Unfortunately, while this strategy has been successful for the most part, it also has moved the makers away from their traditional core competencies, with such consequences as a spike in recalls, reliability problems, and overengineered gadgets like the i-Drive.

But where the Bimmer really excels is driving. Forget all the gadgetry. This is one smooth-driving and fun car. (We're talking about the 4.8i version now. It's hard to get too excited about the 3.0si.) Thanks to its new double-wishbone multi-link suspension and Dynamic Stability Control—which enhances driving performance by coordinating traction control, braking, and cornering—as well as a lower center of gravity, the X5 has a much more car-like ride than its predecessors. Previous incarnations could be zippy but tippy. Braking is also improved, as is the new, more responsive six-speed automatic transmission standard on both models.

Buy It or Bag It?

The 4.8i is the model to choose if your budget allows for it. The only reasons you might not go for it: a) You can't afford it, or b) you have too many kids and don't want to strap all your bags to the roof.

If, however, you happen to fall into the former of those categories, we would like to recommend the excellent Acura MDX,, which has a MSRP of $40,665. While it may lack the refinement and speed of the X5, it stacks up nicely in nearly every other respect.

Alternately, you could buy American and once again we mention the Ford Explorer, which costs almost half as much as the 4.8i.

And if you wanted the status of a BMW but still feel a pang of conscience about driving such a gas-guzzler, you could consider the RX 400h hybrid from Toyota's (TM) Lexus division. Not only does the front-wheel-drive version still cost less than the X5 at $41,500, it gets 32 mpg in the city and 27 mpg on the highway.

But if you have only two kids and plenty of money (and don't think too much about fuel emissions), the X5 is a winner.

Click here to see more of the BMW X5.

Charles DuBow is director for new products at BusinessWeek.com.