Grand Rover

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There is a less thirsty V6, but it may not have the muscle to accommodate the LR3's weight.

That poor mileage is even more disappointing because the interior is such a success. Although not quite as fine as the Range Rover or Range Rover Sport, it's extremely comfortable and luxurious. The buttery leather seats are a particular pleasure. Thanks to well-designed folding seats and the cathedral-style open canopy, the LR3 is actually roomy enough for seven. Even the rear-most "stadium" seats are comfy.

The dash, while solid, is appropriately utilitarian—as one would expect from a brand that made its name creating vehicles designed to tackle the sands of the Sahara and the jungles of Burma. And, yes, there is no question this is a British car; it even comes equipped with a voice-command navigation system that speaks the Queen's English.

The 13-speaker, 550-watt, Harman Kardon-crafted system in the LR3 sounded slightly better to me than the massive audio of the more expensive Range Rover Sport. That could have something to do with the acoustic qualities of the cavernous cabin. With clear treble and rich bass, the sound is so good I suspect even Raffi will sound enjoyable in here, though P. Diddy's beats rumbled mighty pleasantly.

The LR3's can-do attitude extends, like its predecessors, off-road as well as on. The extensive list of serious 4x4 features, from the dial-activated terrain response system to progressive hill descent control, promises to turn the car into a dirty pretty thing, should you wish. After an initial gasp, the serious off-road community has heartily embraced the LR3, with a large number of third-party accessories making it to market—a good sign of acceptance among the hard core.

Buy it or Bag It?

All this real off-road capability only exacerbates the current crisis of conscience in SUV land. Yes, the LR3 can wade through malaria-infected swamps and scale snowy mountain peaks. But despite all its well-earned, off-road credibility, this is a wealth truck priced more for Southampton than the Serengeti.

That something so rugged should become a measure of luxury is one of Land Rover's smartest marketing achievements. In so many ways, this is a remarkable vehicle—from the standpoints of handling, ride, interior quality and comfort, and, above all, looks—but its poor fuel economy is still a nagging issue.

If you are in the market for a luxury SUV that sits seven, or run a high-end safari company, the LR3 is an obvious and well-considered choice. But if your driving needs are more mundane, or if you find driving such a gas guzzler unconscionable, you may want to look elsewhere. What we'd really like to see is Land Rover creating a hybrid or diesel version of its SUVs. Then there truly would be no obstacle they couldn't climb.

To see more of the LR3, click here for the slide show

Vella is a writer for BusinessWeek.com in New York.

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