2009 BMW X3

***Update 11/16/09***This has been the most trouble-free, perfect, zero-defect new car ever in my family.  It is now 9-months-old and just over 18,000 miles have passed under its Pirelli Scorpion tires (plenty of tread left).  Never before has a new car arrived in my family with absolutely ZERO DEFECTS.  There is always something.  My new Mercedes C300 had two minor trim issues (fixed immediately) and the sunroof needs an adjustment at my next (first) service, but this BMW has not had a single issue.
The car (it is a car, despite the tall profile and AWD) remains fast, fun to drive, reasonably fuel-efficient and unstoppable in bad weather and/or terrain.  Add the best build-quality I've ever seen and I just can't recommend the X3 strongly enough.
BMW has a new model coming for 2011, but I recommend getting a carry-over 2010 while you can (panorama roof is now optional, otherwise identical).  This is really a quality piece.

***Original Review***  I'll start off by saying up-front that I do not like SUVs.  Never have, never will.  For carrying four or five people and their luggage a sedan or wagon is a much more efficient tool.  For carrying bulky objects or pulling  a load nothing beats a good pickup truck.  For carrying more than 5 people and their stuff I would look to, gasp, a minivan, or for a huge mob one of the big full-sized vans.  Even for off-roading, a Jeep Wrangler or the like is far better than some overpriced, street-oriented poser.  In short, I consider the SUV to be a rolling automotive Halloween costume; showing the world that you are a rugged outdoor adventurer when in reality you drive to and from work everyday just like everyone else.
 
So why, if Idislike SUVs so much, did I just buy a brand-new 2009 BMW X3 and commit myself to five years of rather hefty car payments?   Simple really, this isn't my car, and while I actually rather like it, it clearly wasn't made for me.  It was made for, and perfectly suits my wife, and I think she will enjoy many years of ownership.  Of course, I have no complaints about taking her car on family outings as the X3 has done an amazing job of changing my mind, if not about SUVs in general, than at least about this SUV in particular.
 
First off, BMW doesn't ever call the X3 or the larger X5 an SUV, they use their own acronym of SAV, swapping "Utility" for "Activity".  I've not driven the X5, but for the X3, this actually is more than clever marketing.  The X3 sits high like an SUV, has all-wheel drive like an SUV and can swallow tons of cargo , five people, or various combinations of the two, like, you guessed it, an SUV.  It won't carry any more people than a sedan or any more stuff than a wagon.  It won't go places that require a real Jeep, won't pull loads that require a real truck and won't sip fuel like an efficient car.  What the X3 will do, however, is an excellent compromise of each of those functions while actually handling like a sports sedan, which is something many (non-BMW) sedans can't even do.  In fact, it doesn't just handle like a sports sedan, it handles like a BMW sports sedan, which is to say it has better road feel than Mercedes C230 Kompressor with sport package.
 
Last weekend I drove 200 miles in the X3, mostly on the highway, mostly at speeds in excess of 80 MPH.  The car was as quiet as my C-class Mercedes, more spacious, more comfortable, and just as fast and fun to drive.  My Mercedes, a 1.8 liter four-cylinder supercharged model known for its exceptional fuel economy would give about 30 MPG under those conditions, while the X3 returned 25 MPG.  Not bad considering that the X3 has a much larger V6 engine, all-wheel-drive and about 1,000 extra pounds of weight.
 
In researching this purchase I read many reviews of the X3 and its primary competitors.  The X3 in its first model years was often criticized for its high price, an overly harsh ride and cheap interior components.  BMW extensively revised the X3 for the 2007 model year resulting in drastic improvements in ride and interior, while still charging a premium price for what is now a more premium vehicle. 
 
Our X3 is a rather basic example, with the vinyl seats, base stereo and almost no options.  In fact, the only options on our car are the automatic transmission, heated front seats and privacy glass.  No nav, no CD changer, no leather or sport seats.  Even in this nearly stripped form, the X3 is a fully-loaded luxury vehicle.  The panoramic sunroof must be seen to be believed, opening almost all the way to the back seats and making the interior feel quite open and spacious despite the compact dimensions.  The seats, base models with the base vinyl, are extremely comfortable and look like proper BMW seats.  Stitching is straight and perfect and the seats themselves are properly firm and well-bolstered even in aggressive driving.  There is no adjustment for lumbar support, but none is really needed.  Another extremely luxurious touch are the power controls for both front seats with a 3-position memory setting for the driver.  I am 5'9" and my wife is 5'1"; both of us easily found comfortable driving positions in the X3, and with the touch of a button, it is effortless to switch between us.  The only part of the interior package that seems out of place is the rear view mirror that lacks automatic dimming, but is otherwise large and has an expensive, heavy feel to it.
 
Our X3 has the base suspension, in part because of the many complaints I read about the overly stiff sport suspension on the 2003~2006 models.  I haven't driven any of those nor the 2009 with sport package, but the base suspension with the base 17" Pirelli Scorpion tires does an amazing sports sedan imitation.  My Mercedes C230 Kompressor has the sport package including stiff suspension and sport tires.  That car was designed for handling and delivers, but amazingly the X3 can match its moves.  I drove the X3 up my favorite mountain road and while it sits high and gives a commanding view of the road, it also corners flatly and responds instantly to throttle, brake and steering inputs.  In short, it drives like a BMW, not an SUV.
 
What it really comes down to with this car is that it has none of the traditional SUV compromises.  Sitting high doesn't force you to give up sporty handling or good fuel economy.  Sporty handling does not force you to give up all-weather traction.  This vehicle really does it all.   It is also a very nice place to do all of that driving.
 
The X3 is what is known in the car business as a "crossover", meaning an SUV that is actually built on a sedan platform.  While the term is new, crossovers have been around for ages, all the way back to the old AMC Eagle of the early 80s.  There are many crossovers on the market today, with premium models like the new Mercedes Benz GLK and Acura RDX competing directly with the X3, but also much less expensive models like the Subaru Forester and Toyota Highlander that provide many of the same virtues.
 
Crossovers are more like tall cars with (usually) all-wheel drive than SUVs, which are truck-based and usually quite a bit heavier and stronger than crossovers.  The difference is that a crossover will (usually) drive like a car, while an actual SUV will (usually) drive like a truck.  Go to your local Toyota dealer and look at a Highlander and a 4Runner.  The resemblance in their body shape is obvious, but look closer and these two vehicles are obvious in what they are, a tall Camry wagon (Highlander) and a Tacoma truck (4Runner) with an enclosed and furnished shell. 
 
So what does that make the X3?  That's the good part, take a BMW 3 series, perhaps the best sports sedan/wagon platform on the market, raise it, add all-wheel-drive (also available on the 3 series) and you have a crossover that is very true to its 3 series origins.  This is not anything new, as the Highlander drives almost the same as the Camry on which it is based, so too does the X3 drive very close to the 3 series, albeit the previous generation, on which it is based.
 
Back to those early claims of overly stiff suspension.  BMW makes sports sedans, and when they started making taller SUVs, their engineers wanted them to handle like BMWs.  A tall vehicle will have a higher center of gravity, and tend to lean more in turns than a lower vehicle.  One way around that is with stiff suspension.  Stiff suspension has other benefits in handling, braking and overall vehicle dynamics, but comes at a cost of ride harshness. 
 
All things being equal, a car with stiffer suspension will handle better than the same car with a softer suspension, while the softer car will be more comfortable over imperfect pavement.  BMW has tweaked the balance on the X3, but even in 2009 with the base suspension and the base (taller sidewall) tires, this is still a very sporty car with a very stiff suspension.  You feel the bumps, and people accustomed to traditional American-style luxury will find the ride quite punishing.  Come out of a BMW or Mercedes sedan, however, especially one with the sport package, and the X3 will feel comfortable and responsive.  My wife is delighted with the increased response and control she feels driving the X3 compared to the Toyota Camry she had before.
 
The other initial complaint that reviewers had of the X3 was that some of the interior trim items were of lower than typical BMW quality.  That issue has also been addressed.  The current 3 series is a bit nicer inside, but remember that the X3 is based on the previous generation 3 series, and the interior of the X3 does feel better assembled and of better materials than a 2005 3 series.  The new 3 is more modern, but assembly and material quality in the X3 are as good as anything in the BMW lineup, which is to say top-notch.  That said, BMW has an all-new X3 coming out for the 2010 model year, and you should expect improvements in design, if not in build.
 
Where the X3 really excels is in daily use as a family car, especially if you live in a place with bad weather.  I live in Southern California which usually does not qualify, but I drive over "The Grapevine" at least twice per week, and in the winter that particular stretch of the 5 freeway often freezes over and if not closed outright, is limited to vehicles with 4 wheel drive or chains.  I've already run into three such days since buying the X3, and on those days my wife and I swap cars and I take the BMW over the Grapevine.
 
Where my Mercedes slips and slides all over the place when the road gets icy, the X3 just pushes on effortlessly, with all of the fancy all-wheel-drive hardware and computerized traction systems doing their magic keep the car going, turning and stopping as you expect it to, regardless of the conditions.  It cannot break the laws of physics, but it sure does seem to bend them quite a bit.
 
In addition to being an extremely safe car, the X3 is also an extremely practical one.  Front seat occupants have a commanding view of the road and wonderfully supportive and comfortable seats, but you would expect that in a German car.  What you might not expect is that the back seats are just about as nice.  Except for the middle position, the back seats are also firm, supportive, extremely comfortable and simply a great place to pass away the miles.  At 5'9", I could sit behind someone quite a bit taller than I am and still have ample leg room.  Front seats are high enough to afford foot room in the rear, and when the middle is empty, the center portion of the seatback folds down to present a very firmly padded armrest with its own console pocket and cup-holders, just like front-seat occupants get in most cars.
 
To say that I am impressed with the X3 is an understatement.  I knew that as a BMW, the X3 would be the most tolerable of what I considered an intolerable class of car.  Instead, the X3 is actually a sports sedan that manages to give you the cargo hauling and bad weather abilities of an SUV, without any of the penalties. 
 
I take that back.  There is one, very significant penalty, and that is the price.  The X3 is easily the most expensive vehicle in its class, and can creep well past $50,000 if you aren't careful with the options list.  I had to look quite hard to find one with a sticker under $45,000, and consider the $37,000 that I actually paid to be quite a bargain.  Still, even a stripped car at a deep discount was considerably more expensive than the Japanese and American competition and the same price as the better equipped Mercedes GLK.  What sold me on the X3 was that with the exception of the Infinity, which is far less practical and efficient, no other vehicle let me forget that I was driving an SUV.
 
Highly recommended.