Audi's Q Factor

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The Q7 is a treasure trove of technologies, some included as part of the basic package and others worth-it options. A standard camera built into the trunk beams images to the dash to assist with parking. Nothing amazing about that. But Audi one-ups the competition by overlaying a 3D image of exactly where the car is headed as the wheel turns—extremely useful. Another handy option that isn't standard is an intuitive mirror-mounted safety system that warns drivers when other cars enter blind spots.

Perhaps the most interesting option, though, is the $2,500 adaptive air suspension. This system allows the Q7 to play well on- and off-road. Race-winning quattro all-wheel drive is sterling. But when the car is equipped with this suspension, the click of a few buttons lifts the ride height to tackle tricky off-road obstacles or lowers it to noticeably improved handling. Think hydraulics in slow-mo. It will be interesting to see how popular an option this becomes, as it does help the vehicle bridge the chasm between off- and on-road performance.

Inside, the appointments are all Audi. The leather and wood trims are sumptuous, seats comfortable, and, at night, the cabin is lit with verve. The panoramic sunroof, standard on the top-of-the-line model, is gorgeous and creates an airy feeling inside the entire cabin. Even the third row of seating is reasonably comfortable, though it's more apt for children than full-grown adults. It's no wonder the model won Ward's Auto Interior of the Year award.

Looks-wise, Audi's new snout is controversial in auto circles. The way the grille pulls the front of the car down toward the road gives the hulking SUV a sportier look. Indeed, despite being a rather large vehicle, the Q7's sweeping lines make it look sleek and smaller than it is.

Buy It or Bag It?

So, Audi's Q7 is safe, luxurious, and well priced at every trim. It competes mightily with all the vehicles in its class. It can be loaded up with enough technology to make even the most blasé luxury buyer's head spin. What's the catch?

Gas mileage, of course. The larger engine is rated to get between 14 and 19 miles per gallon. That's pretty standard for the class except for the hybrid version of the Lexus RX. But, in my tests, it averaged far below that. In mixed highway and city driving, I only managed to average 13.4 miles per gallon.

Also, if you like the Q7 you may want to take a closer look at the closely related Cayenne S and Touareg V8. The former is actually about $2,000 less than the Q7 quattro Premium edition, albeit with a slightly less powerful engine and a shorter wheel base. The Touareg costs a good $15,000 less before optional extras.

Still, for an offering as late as the Q7 is, it's a remarkably strong offering in a highly competitive market.

Click here to see more of the Audi Q7.

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