One of the perks of writing about cars is the chance to get behind the wheel of a wide variety of vehicles. I’m particularly interested in entry-level cars since not everyone can afford to spend $50,000 or more on their next car. However, I also end up driving plenty of high-end luxury models. While the story isn’t always about the price tag, it’s hard not to wonder, “Is this worth the money?” when driving a premium-priced car.
But what qualifies as a premium price these days? Over the past 30 years, the average cost of a luxury sedan has climbed from around $30K to about $60K. Luxury SUVs, which weren’t particularly prevalent in the late 1990s, now average anywhere from the high $50Ks to well over $100K. Anyone who’s been car shopping recently has likely noticed that all car and truck prices have risen significantly. It’s tempting to blame tariffs, but the reality is that the industry has steadily shifted toward higher price points, and people are still buying them.
It’s no surprise that the average car loan duration has increased significantly during the same period. As the classic car salesperson asks, “How much can you afford to pay each month?” The solution to pricier vehicles is longer loans to keep monthly payments manageable. When I was learning to drive, the average car loan was three years long. Now it's 6-7 years. Even then, an $80,000 car financed over six years will demand a hefty payment of $1,470/mo for the entire term.
Which brings us to the beautiful and luxurious 2025 BMW X5 xDrive40i. I had the opportunity to drive one for a week and quite loved the car. There are some significant considerations, not the least of which is its price tag, but there's also no question that if you want a truly luxurious SUV for the family, this is a solid option to consider. The loaner vehicle featured the Silver Anniversary (of the X5) trim kit, a Lime Rock Grey Metallic exterior, and Cognac Sensafin interior:
It's a surprisingly streamlined design on the front, though a bit blocky, considering how sleek the rest of the lines are. For those of you who live in states that require a front license plate, you'll appreciate that it's ready to go, though it's not obvious whether you can take off the plate mount from the front bumper or have it delivered without a front plate mount if you prefer a rear plate-only configuration. Also note the swanky 20-inch M Star-Spoke bicolor wheels, borrowed from the M-Sport package. Part of the optional Off-Road Package, they definitely give it a more sporty appearance!
From the outside, in many ways, it's just another SUV. Once we move inside, however, that's where the luxury really shines through:
This is a beautifully appointed interior with its dual display, stretching across the entire front of the cockpit as an absolute centerpiece. The instrument cluster screen directly behind the steering wheel is 12.3 inches, and that infotainment touchscreen is a very generous 14.9 inches. Basically, the size of a computer laptop though slightly shorter. Suffice it to say, there's screen real estate to spare without the clumsy, vertical orientation of Tesla-inspired dashboard designs that tend to sacrifice knobs and buttons. It is running wireless Apple CarPlay, and it also supports wireless Android Auto:
It's so big that it might be at the logical extreme for screen sizes in a vehicle. Once the vehicle can drive itself, then this might be a lovely place to watch a movie, but if you are still actively involved in the driving process - as you should be - then having more map displayed is not going to help you navigate more successfully.
Also, notice that the climate controls are touchscreen-based: this has become a point of controversy with many cars, as some new owners have been quite vocal that they prefer physical knobs for controlling the temperature. I found these controls quite easy to work with: a tap and you also have access to the seat heater and, on this driver's side, steering wheel heater control too. It all seemed very intuitive in actual use.
This isn't to say that there aren't knobs and buttons in the X5:
The controls on the steering wheel are nicely symmetric. The left side is primarily for managing cruise control, while the right gives you somewhat cryptic access to infotainment and communication capabilities.
Note also the paddle shifters. No surprise there. In fact, this X5 offers a lively private experience, powered by its 3.0L turbo in-line 6-cylinder, 24-valve engine. It features eBoost, mild hybrid technology, variable valve control, and an eight-speed sport automatic transmission. Don't let the word hybrid fool you, though; it gets pretty mediocre mileage for a vehicle of its class. EPA estimates are 23/27, and I saw around 24 miles per gallon for my own driving. I would like to see these numbers to be +10, even at the cost of slightly lower performance. This is, after all, an SUV, not a M-series BMW racing sedan. But there's no question that people are paying a premium for this vehicle because of the driving performance. It is a very modern trade-off.
Speaking of knobs and dials, the center console is quite busy with controls and options in an almost bewildering fashion. Notice the extremely streamlined gearshift lever and the control knob and buttons associated with the infotainment system on the right side. To be candid, there are a lot of controls pushed into the center console, something that might prove to be disconcerting for people who aren't used to the contemporary BMW layout. Also noticed the "25 Years of X5 Silver Anniversary Edition" badging on the cover of the cupholders. This seemed more like something that would be part of a demo before purchase and less likely a medallion I would want to have on my car for the next 10 years. Then again, you can simply opt not to get the Silver Anniversary Edition, and that would go away.
One area where BMW really shines is the main gauge display. This changes based on driving mode - you can see at the bottom that I'm in "comfort" mode - and it's a bright and easily understood display design that offers critical information without clutter. Notice that the combination of the hefty 21.9-gallon tank and its fuel efficiency offers of remarkable 466 miles of range. It's enough to make you stop worrying about the location of the next gas pump. 😉
I can't leave the interior without highlighting the glorious panoramic moonroof:
It's not a convertible - I don't think any SUVs offer convertible options - but it's the next best thing and really opens up the feel of the vehicle, particularly for rear passengers. Speaking of which, those rear passengers had better not be too big:
If you're looking at the above picture and wondering where the legroom is, then you're on the right track. Unless the front passenger and driver move their seats up, there's really minimal legroom for rear seat passengers, making this very expensive vehicle more like coach class on an airplane than business class or first class. The trade-off here is that it does mean that there's more cargo space in the back, but I can't help but wonder how many people would rather have 6 inches more legroom at the cost of 6 inches less cargo depth. Here's what that rear cargo space looks like, just as a reference:
I really liked the two-way tailgate! It's very easy to open the top hatch to load in groceries, the result of your latest trip to the hardware store, sporting gear, luggage, whatever, while leaving the lower portion closed so that you actually don't just have it open all the way back. In a typically luxurious fashion, some buttons let you automatically open and close either or both portions of the split tailgate. In addition, notice how much space there is. It is a generous cargo space, though, again, a little less capacity and a little more rear legroom would be a much appreciated design upgrade.
You can see the split rear door system in the above photo, but it's very subtle. In fact, the rear design of the 2025 BMW X5 xDrive40i SUV is a great chance to see how BMW has tried to step up a little bit from the cookie-cutter design of modern SUVs. And yet, it remains a very modest exterior that hides all of the luxury and capabilities inside the X5.
Ultimately, this X5 lives up to the BMW promise of it being a driver's car: it is a really fun drive with power to spare and a nimble suspension system. The driver and front passengers are couched in luxury, and the details of the dashboard and overall dash design - especially that glorious infotainment display - contribute to a really fun drive experience. However, it's hard to ignore that it's not very fuel-efficient, and that it has a price tag that will cause even someone who just cashed in their options to give pause regarding the actual off-the-lot price. Is this for you? If you could afford it and you seek comfort and luxury and don't mind a hefty bill at the gas pump, then this might be one to bump onto your shortlist. It's definitely worth a test drive. Need a bigger version of it? That's why BMW makes the X7. But be prepared for that price tag, which is even more in the nosebleeds.
2025 BMW X5 xDrive40i 25th Anniversary Edition with 3.0L BMW TwinPower turbo 6-cylinder engine and 8-speed automatic transmission. BASE PRICE: $68,000. Options included: Off-Road Package, Parking Assistance Package, and Special Edition. AS DRIVEN: $81,075.00
Disclosure: BMW loaned me the X5 for a week in return for this candid review and write-up. This article originally appeared on the site PlanetDave.com with the original title Is the 2025 BMW X5 xDrive40i too Luxurious for an SUV? and is republished here with permission.
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