Why We Bought It
How It Drove
Inside the Cabin
Summing Up
Changes to the X3 since 2005
Ups and Downs
Recalls and Problem History
Dealer Service Reviews
What Consumers Say

Why We Bought It
In 2004, BMW introduced a smaller version of its popular X5 SUV, the BMW X3. After a year of watching the baby Bimmer scoot around town, we had the opportunity to add one to our long-term fleet. We jumped at the chance.

We chose the most powerful version, an X3 3.0i which makes 225 horsepower and 214 pound-feet of torque. It carried a reasonable base price of $36,995, which we quickly optioned up to a pricey $47,520.

Our Mystic Blue Metallic X3 3.0i with its striking Terracotta Montana leather interior was now loaded to the gills. A navigation system, a suspension-firming sport package, an automatic transmission, a premium sound system and xenon adaptive headlights were among the options.

How It Drove
Immediately, editorial staff members began to rave about the X3's quick responses, its substantial feeling on the road — unusual for such a small vehicle — and its gutsy inline-six engine. The six runs smooth as silk, has a ripping exhaust note when you wind it out and performs like it's hiding 40 more horses under the hood.

We also like the fact that the transmission has three shift modes: normal, sport and manual. Bump the lever into sport mode and the transmission is extremely responsive, downshifting swiftly at a nudge of the throttle and holding onto the lower gears as you accelerate smoothly through tight turns.

However, some staffers think the tranny should be quicker to downshift in normal mode. Edmunds' Editor in Chief Karl Brauer says, "Even in normal mode, it should downshift if I quickly go from one-quarter to three-quarters throttle. In actuality, it won't downshift until I nearly floor it."

We love the taut handling the X3's sport package provides, but were far less appreciative of the ride quality. Bumping our way harshly over freeway expansion joints, some editors would have happily given up the sport package for a more compliant ride. We recommend that shoppers take a test-drive with both suspensions (standard and sport package) before making a final selection.

Even if we weren't always comfortable with the ride, we still had nothing short of full confidence in the X3's ability to take on the elements. "The X3 is one of the most confident vehicles I've driven in the rain," remarked Karl. "I'm not sure how much of this was influenced by its tires, weight distribution or all-wheel-drive system, but whatever the cause, the result was pretty impressive."

"I was glad I had the X3 during all this rain," concurred Road Test Editor John DiPietro after a rare Southern California bout with heavy weather. "I thought with the sport package that traction might be compromised during the floodlike conditions. Thankfully, I was wrong. The all-season, high-performance Dunlops (SP Sport 01s) did an amazing job of channeling water away and kept the X3 in full contact with the road. This is definitely a very good thing, as I'm not a big fan of hydroplaning."

In fact, our only real concern with the X3's performance during the yearlong test was one weekend excursion to Death Valley, California. Since the BMW X3 is an SUV with all-wheel drive, we expected that it would be able to handle a dirt road. Unfortunately, an afternoon spent on a bumpy desert road proved to be too much. The tires held up fine, but the rear suspension couldn't handle the stress. We can only assume that our test vehicle's street-focused sport package had something to do with it. In any case, both rear shocks were rendered useless and several suspension parts needed replacement. Luckily, the repair was covered under warranty. From that day on, we kept the cute ute on the pavement.

Inside the Cabin
If the magnificent Terracotta leather interior didn't automatically hook us on the X3, the comfortable cabin and excellent build quality did. The X3 made several road trips carrying numerous satisfied staffers. Managing Editor Donna DeRosa took the X3 up to Santa Barbara (about 200 miles, round-trip) with some friends. From her notes: "The navigation system was very helpful once I figured out how to use it. I didn't have any plans except that I knew I wanted to head north and find Santa Barbara. I relied entirely on the nav system to get me there and back."

Regarding the X3's seat comfort, Donna had this to say: "Getting into the front seats is a little difficult because of the sport seat bolsters." But she did appreciate the firm support the seats provided, as well as their multiadjustable heaters. "The heated seats work really fast and they stay very warm," she wrote in the logbook. "I've noticed in a lot of other cars, they fade after you've had them on for a while."

Minor quibbles from those in the rear seat included the lack of amenities, such as the absence of their own climate controls and window shades to mute the afternoon glare. That may sound like a lot to ask for from a mini-SUV, but remember that this one stickered just over the base price of the larger BMW X5.

One thing we don't understand is why the Park Assist system's beeping (which increases in frequency as you get closer to an object) continues after you've put the car in "Park." John DiPietro elaborated: "I love this feature, but it should know that when the transmission's gear selector is put into 'Park,' we're done moving and it can stop its frenetic warning."

Executive Editor Scott Oldham has spent quite a bit of time with the X3, even going so far as to request it for family outings and road trips when a larger or more expensive car was available. He says, "Awesome long hauler. I did 303 miles in five hours on one tank of gas. The seats are excellent."

Midway through our 12-month loan, BMW contacted us asking if we'd like to have a newly available (optional) rear-seat DVD entertainment system installed in our X3. Road Test Editor Brian Moody got a lot of use out of the new system and had this to say: "I love the fact that there are two headrest-mounted screens rather than one in the middle. Also, with the DVD player mounted in the center armrest I can stop, load and start a movie from the driver seat since my 3-year-old son hasn't yet mastered a remote control." We also like the system's wireless headphones. We recently had a $120,000 luxury sedan, and that car had the decidedly un-kid-friendly hard-wired headphones. We can't count the number of times we had to stop because of a tangled wire or pulled-out jack.

The X3 seemed to garner almost unanimous praise for its interior styling, but some on staff were not fond of the exterior, especially the black bumpers. It seems BMW was dissatisfied with the cheap black look as well, since the 2006 BMW X3 now comes with body-color bumpers.

Summing Up
Unfortunately, one summer day, our X3 was the innocent victim in a rear-end collision. The BMW was hauled away by flatbed and spent three weeks at the body shop while the mechanical and body repairs were made. The total repair bill for that single accident was a whopping $7,901.52.

If we were forced to note one serious complaint about our 18,000 miles in the X3, it would likely be the time it was tied up in the body shop. While the stiff city ride that comes with the sport package was not always appreciated, we do value the handling and the highway manners of the X3. With its manageable size, sporty nature and new DVD system, the X3 was one of the most popular vehicles in our test garage.

True Market Value at service end: $37,532
Depreciation: $9,988 or 21% of original paid price
Final Odometer Reading: 17,964
Best Fuel Economy: 23.8 mpg
Worst Fuel Economy: 12 mpg
Average Fuel Economy: 17.6 mpg
Total Body Repair Costs: $7,901.52
Total Routine Maintenance Costs (over 12 months): None
Additional Maintenance Costs: None
Warranty Repairs: 1
Non-Warranty Repairs: 1
Scheduled Dealer Visits: 1
Unscheduled Dealer Visits: 2
Days Out of Service: 31
Breakdowns Stranding Driver: None


Changes to the X3 since 2005
For 2006, BMW has discontinued the base 2.5i model.

Ups and Downs
Ups: A fantastic package that combines compact sport-utility convenience with sports car handling.

Downs: An as-tested price over $47,000 makes it less competitive among its comparably sized peers.

The Bottom Line: If we didn't have to pay the high sticker price, we'd have a garage full of X3s.

Recalls and Problem History
Recalls: None

Problem History:

1. Rear shocks blown on state-maintained fire access road. Shocks were replaced under warranty.
2. Vehicle was rear-ended in traffic accident.

Dealer Service Reviews
Santa Monica BMW, Santa Monica, California
June 2005
An afternoon of cruising a bumpy desert road proved to be too much for the X3's rear suspension. Perhaps our test vehicle's street-focused sport package had something to do with it, but we're still left scratching our heads. In any case, both rear shocks were rendered useless, and several suspension parts needed replacement.

Though the bouncy ride back to the office was fun for a few miles, we ended up parking the X3 while we waited a week for the back-ordered parts to arrive. Santa Monica BMW handled the repairs with skill and efficiency, despite the delay on parts.

November 2005
At 15,000 miles the X3 service light illuminated, indicating the SUV was ready for an oil change. We delivered the BMW to the dealer and reclaimed it later that day with no charge.

Long Beach BMW, Long Beach, California
June 2005
After being rear-ended by a wayward Chevrolet Cavalier, the X3 was moved by flatbed to Long Beach BMW where it remained in the shop for three weeks while the body and rear mechanicals were repaired.

What Consumers Say
"Excellent overall performance: It's dependable, reliable, gives great mileage on the highway for an SUV. Bluetooth is really helpful during traffic or bad weather. Like the descent control when on a hill. Would like to improve navigation, and make it touch screen. Navigation is not reliable in NJ and NY, as it requires too many U-turns." — yasercheema, January 25, 2005

"Wow, what a great car/truck/SUV. I would expect it to get better gas mileage since it is based on a car platform. Awesome ride and handling and what an amazing sunroof. Got the red leather interior. Interesting no one has it so it looks sharp. Easy navigation system. Not that much room in the trunk area but certainly enough. Feels rock solid on the road and safe. Memory seating build into key fob has to be one of the best features along with heated steering wheel. Great sunroof. It sure holds its value. Hope this helps. Thanks, navigation system. Memory seating built into key fob has to be one of the best features along with heated steering wheel. BLUE TOOTH WITH PHONE IS GREAT!!! Better feel dash parts (some hard plastics). How about somewhere to put change and a cell phone without having to reach backwards to put it all in the center armrest where it makes a lot of noise? More cubbies. Make the armrest extend out like on my Saab so I can rest my elbow closer to the dash." — yetialan, December 29, 2005

"This is a noisy, uncomfortable vehicle with nothing to recommend it except for sitting up high. Its power is ordinary; its ride is noisy and rough. It has a strange rattle in the sunroof. After all is said and done it is overpriced, too." — H. Gleeksman, December 18, 2005

"Traded a Lexus RX 300 for the BMW. The BMW is far more nimble and fun to drive. My gas mileage has been great, 18 to 20 in town and 25 to 26 on the highway. The BMW is not as quiet or luxurious as the Lexus but has more room behind the rear seat and the seats are more comfortable (still pretty hard, though). My only complaint is that the interior is difficult to keep clean. The dash and synthetic seats look tough but show every spec of dust. Advice: don't get the black interior." — Joe, November 8, 2005