BMW's Too Expensive X3

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Behind the Wheel

It's hard not to like a vehicle based on the new BMW 3 Series coupes and sedans, which are among my all-time favorite rides. In terms of pep, the X3 is similar to the 328i. BMW says the X3 with an automatic transmission will accelerate from a dead stop to 60 mph in 7.1 seconds, and I pretty much matched that time in my test vehicle. I got zero-to-60 times of just over 7 seconds letting the automatic transmission do the shifting on its own, and just under 7 seconds doing the shifting myself with the automatic transmission in the manual mode.

However, the X3 is noticeably slower than a comparable BMW automobile. I got zero-to-60 times of around 6 seconds in a 328i coupe. And of course there's no comparison with the more expensive and ultraquick 335i coupe, which does zero-to-60 in around 5 seconds.

The X3's steering is taut, and its suspension is sporty—probably too hard for most suburbanites. As with the 3 Series, the shifting of the Steptronic automatic transmission is lightning quick.

However, the X3 is, after all, an SUV, so its center of gravity is higher than the 3 Series sedans and coupes. Ground clearance is a relatively high eight inches, for instance, and the X3 is 66 inches tall, 10 inches taller than its 3 Series sister models. Unsurprisingly, it just doesn't hug the road as well as a coupe or sedan.

The '07 X3's cabin is one of its strong points. It isn't particularly luxurious, but it looks well-made and elegant in an understated way. Wood trim is standard, and if you go with the leather upholstery, there are classy looking leather panels above the door handles.

The driver's cupholder is in the center console, rather than popping out of the dash to the left of the steering wheel, as it does on some Bimmers. This is a blessing, because dash-level cupholders always seem to splash beverages on your left knee during hard driving in a small vehicle like the X3. (The passenger-side cupholder still pops out of the passenger-side end of the dash, but at least the passenger has free hands to grab the cup if it starts spilling).

The rear seats fold down easily and flat in a 60/40 pattern. This is handy because it allows you to haul long objects (I hauled some six-foot boards) and still have room for one passenger in the backseat.

A panoramic sunroof comes standard and keeps the relatively small cabin from seeming claustrophobic. It's also practical, since in good weather it increases your hauling capacity. I bought a new push lawnmower and hauled it home from Home Depot in the X3 with the handle sticking up through the sunroof.

The X3's navigation system is also much easier to use than the confusing iDrive system on higher-end BMWs like the 750Li. The basic screen is in shades of gray. You choose commands by turning and pushing a knob like the ones you use to change radio channels. An arrow points the direction in which you're supposed to head. The GPS system is accurate, even in out-of-the-way, rural areas. And you can call up all the usual information on the nearest hotels, restaurants, ATMs, and gas stations.

Buy It or Bag It?

I only have two real complaints about the X3: its relatively high price and the fact that it's an SUV.

My first question: If you like to drive and want a BMW, why buy an SUV like the X3? Even with all-wheel drive, the BMW 328xi sedan starts at about $35,000 (almost $4,000 less the X3), and the 328xi coupe at $37,875 (slightly less than the X3). Knock nearly $2,000 off those prices if you don't need all-wheel drive, which comes standard on the X3.

Either car is lighter, quicker, and lower-to-the-ground than the X3. Both also get slightly better gas mileage. Pay an extra $475, and you can get fold-down rear seats and a ski bag pass-through from the trunk to the passenger compartment, which make the BMW coupes and sedans almost as practical as an SUV for most people.

If you feel you really need an SUV, consider the Acura RDX instead. It has attributes similar to the X3's—it's almost exactly the same size, for one thing—yet costs thousands of dollars less. According to the Power Information Network, the RDX has an average selling price of $34,403, which is more than seven grand under the X3's average of $41,727.

I haven't driven many of the other cheaper alternatives to the X3, but there are a lot of them. The Lexus RX350 sells for an average of $38,653, for instance. Ford's (F) Lincoln MKX sells for an average of $38,592, and its Land Rover LR2 for $37,628.

If I were considering an X3, I would think long and hard about whether I really needed one. And I would probably end up buying a BMW 3 Series coupe with fold-down rear seats instead.

Click here to see more of the 2007 BMW X3.

Thane Peterson reviews cars for BusinessWeek.com.