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The BMW X5 was this German automaker’s first entry into the luxury SUV segment. Realizing that most SUV buyers rarely, if ever, venture off-road, BMW designed the X5 for on-road performance and handling. Short overhangs, a compact size (the original was 4.5 inches shorter than the 5 Series sedan of the same time period) and a car-based chassis combined to give the X5 its low stance and superb on-road performance. The X5, produced at BMW’s first American plant in Spartanburg, South Carolina, quickly became a huge hit for BMW in the U.S.

The first-generation BMW X5 only sat five people, however, and this is something that the company addressed with the current model. Redesigned for the 2007 model year, the latest X5 features an optional third-row seat and seating for seven. The vehicle is larger than before and has more cargo capacity but is still very entertaining to drive as luxury SUVs go. If this appeals to you, the BMW X5 is a fine choice, new or used.

Current BMW X5

The redesigned X5 comes in two variants: the six-cylinder X5 3.0si and the V8 X5 4.8i. The goal of the redesigned vehicle was to address certain deficiencies in the outgoing model, primarily its lack of utility. The second-generation X5 looks very similar to its predecessor. The X5’s signature ducktail tailgate remains, as do the tailpipes that exit from the rear bumper cover. However, passersby will notice the sharp creases in the X5’s sheet metal that break the flow of its curved panels, giving the new X5 a more aerodynamic shape. This X5 is 7.4 inches longer, with 4.5 inches of that increase going to the wheelbase.

Most importantly, the added length now gives the X5 more cargo space than a BMW 5 Series wagon. The increased size also results in a more planted, station-wagonlike appearance compared to the tall-and-tippy look of the original X5.

If there was a flaw in the original X5’s driving dynamics, it was the luxury SUV’s stiff ride quality. BMW addressed that issue on the second-gen X5 by fitting a new double-wishbone front suspension, the first non-strut type BMW front suspension since 1961. The smooth ride is particularly impressive given that all X5s now wear run-flat tires.

The BMW X5 offers two new engine choices: A 260-horsepower inline six-cylinder engine is standard on the X5 3.0si, and a 350-hp 4.8-liter V8 is included on the X5 4.8i. An improved xDrive all-wheel-drive system is also standard and further enhances the X5’s all-weather capability.

Our editors have found the interior furnishings quite handsome in BMW’s biggest and newest SUV, with comfortable seating for the driver and rear passengers. The materials are of excellent quality and the craftsmanship is top-notch. The only sour notes in the interior are the controversial nature of the iDrive system interface and the small size of the third-row seat, which makes it impractical for use by adults.

Past BMW X5 Models

The original BMW X5 debuted for the 2000 model year. It was initially offered with one engine only: a 4.4-liter V8 engine. A 3.0-liter inline six-cylinder engine debuted the following year. Though the six-cylinder offered superior fuel economy and adequate overall performance, it was often criticized for its lack of off-the-line grunt. The 4.4i reached 60 mph in fewer than 8 seconds. One note to buyers looking at a first-year BMW X5: All X5 models manufactured after June 2000 (starting with the ‘01 model year) benefited from important structural changes that improved occupant protection in frontal crashes.

In 2002, the high-performance BMW X5 4.6is debuted, boasting a 4.6-liter V8 making 340 hp and 350 pound-feet of torque. The midlevel X5 4.4i saw an 8 horsepower increase to 290 for the year. Towing aficionados welcomed a new version of the stability control system that aided trailer towing, and BMW finally made a CD player standard in its luxury SUV.

In 2004, the X5 received its most extensive refreshening. A new front fascia received BMW’s signature corona ringed headlamps, optional adaptive headlights and new foglamps. The year also marked the introduction of BMW’s new all-wheel-drive system, xDrive. Compared to the previous setup, xDrive was far more capable, with its ability to transfer 100 percent of the engine’s torque to one individual wheel. (The old system could only distribute torque front to rear.)

Also noteworthy for 2004 was the replacement of the high-performance X5 4.6is with the 355-hp 4.8is model. BMW also installed the V8 engine from the ‘02 7 Series sedan in the midlevel X5 4.4i, which raised output by 35 horses to 325 hp.

In reviews, we typically praised the first-generation BMW X5 for its carlike ride and handling, its wide range of engine choices and its top safety scores and equipment. Oft-noted downsides included its lack of off-road ability and small cargo area.