BMW X3 on the roadSince 2023, the X3 has become BMW's best-selling model, overtaking veteran nameplates like the 3 Series and 5 Series sedans. Its success is arguably down to its versatility — much like the 3 Series, it combines ample power and sharp handling with everyday practicality, all at a price that's attainable for a wide spectrum of buyers. The Bavarian manufacturer has given its all-conquering SUV a thorough redesign for 2025, launching a new, fourth-generation model that claims to offer significant improvements over the outgoing car. Given its global popularity, the X3 is a particularly important model for BMW to get right. That said, any buyers who aren't sold on the latest changes could always opt for a used X3 instead, saving themselves money in the process. Whether you're planning on making a trip to the dealership for a new X3 or perusing the classifieds for a quality used example, these tips should give you an overview of what's new for 2025 and what to look out for in a used car. The X3 Is Overhauled For The 2025 Model Year BMW X3 rear 3/4 viewWalk into a BMW dealership, stroll over to the X3, and the first thing you'll notice is that the latest model looks notably different from its predecessor. BMW calls the new shape "almost monolithic overall," and there are clear design similarities to the latest 5 Series. Whether that's a good thing or not is a matter of personal taste, but at the very least, the 2025 X3 won't be confused with older model years. The latest model year launches with just two trims available. The entry-level BMW X3 30 xDrive starts at around $50,000, while the BMW X3 M50 xDrive starts from just over $65,000, including fees. Both have different powertrains — which are discussed below — and the higher trim benefits from various added M Sport extras. Among other things, those extras include new brakes, a revised rear differential, and M Sport-specific suspension. The M-badged version also gets four exhaust tailpipes rather than two. It's Available With Four Or Six Cylinders BMW X3 engine bayUnder the hood, the differences between the entry-level X3 30 xDrive and the top-spec X3 M50 xDrive are notable. The base trim packs a twin-turbocharged 2.0L four-cylinder engine with a 48V mild hybrid system. It churns out 255 horsepower, pushing the car from a standstill to 60 mph in around six seconds, according to BMW. The X3 M50 xDrive is significantly more powerful, with 393 horsepower on tap from its hybrid powertrain and a 0-60 mph time of 4.4 seconds. Providing the vast majority of those ponies is a twin-turbo 3.0L inline-six, which is assisted by a 48V mild hybrid system. The M-badged X3 is the clear choice for power, and the added grunt makes only a small dent in its efficiency. The four-cylinder powertrain is slightly more frugal, offering an EPA-estimated 29 mpg combined, but the six-cylinder is no gas guzzler, with claimed figures of 27 mpg combined. Both will need premium gasoline to run optimally. New X3 Models Can Park Themselves BMW X3 side profileParking in tight spaces can be stressful, but the latest X3 aims to make parking less of a hassle with a new suite of automated features. As standard, the car comes with a rear-facing camera and a reversing assistant that uses the location of nearby cars to work out the boundaries of a space. If that's not enough to ease parking worries, buyers can also spec the optional Parking Assistant Professional Package for an additional $1,700. It adds the ability for the car to maneuver independently into a parking space without needing a driver in the car. The maneuver can be initiated by the driver using BMW's smartphone app. Up to 10 maneuvers can be stored, totaling 650 yards. The car can also reverse up to a distance of 650 feet with the optional package installed. However, the car will need to have been driven forward through that route already — so the car can reverse itself out of an awkward spot that you drove into, but it can't reverse into a spot that's outside of its prior route. The Infotainment System Runs On Android-Based BMW Operating System 9 BMW X3 infotainment screen and steering wheelBMW's latest infotainment system comes as standard with all 2025 X3 trims, and it sports a few differences from older systems. For starters, it's now built on Android, making it easier for third parties to integrate apps and streaming services. It also utilizes fewer physical buttons and switches than before, relying more heavily on its touchscreen. However, not everyone will be pleased about that change, and there are questions regarding whether more screens and fewer buttons can lead to increased driver distraction. Still, the brand's familiar iDrive controller remains present as a secondary means of controlling the system, and there are a few buttons on the steering wheel that control the car's core functions. A heads-up display is also optional to reduce driver distraction, while BMW's Intelligent Personal Assistant lets drivers use voice commands to control streaming apps or navigation. To use most of these hands-free features, a subscription to the brand's Digital Premium service is required. BMW Is Challenging Tesla For In-Car Entertainment BMW X3 cabinThe car's infotainment system will be kept fresh via over-the-air updates, with new connectivity and entertainment features promised in due course. The X3 already offers a comprehensive range of in-car entertainment, seemingly taking a leaf out of Tesla's playbook. As well as being able to connect common streaming services like Spotify and Amazon Music, subscribers to BMW's Digital Premium package get access to TiVo's in-car news and video streaming platform. Also available is a selection of built-in games thanks to BMW's partnership with AirConsole. The selection varies over time, but as of this writing, AirConsole lists games from well-known franchises, including Overcooked, Uno, and Who Wants To Be A Millionaire. Single and multiplayer modes are available, with occupants' smartphones acting as controllers in most instances. BMW notes that a few games can also be played via the car touchscreen itself, without the need for a separate controller. The X3 Is Made In America And Its Rivals Aren't BMW South Carolina facilityThe X3 is one of several BMW models made in America, with others including the X4, X5, and X7. Each is built at the brand's Spartanburg plant in South Carolina, with the plant having been in operation for around three decades and built more than 6.5 million cars in total. At the time of its construction, it was the first full BMW manufacturing plant to be built outside of Germany. Over 1,500 cars leave the factory every day, with the majority of those being exported outside the U.S. Domestic demand accounts for around 40% of the plant's output. BMW is far from the only foreign manufacturer to build cars within the U.S., although most of the X3's direct rivals are built abroad. The Mercedes-Benz GLC, for example, is manufactured in Germany, while the Audi Q5 is built in Mexico. Buyers looking for a Volvo XC60 will have to order one from the brand's factories in Sweden or China, while the larger but similarly-priced Lincoln Nautilus is built in China, despite its American badge. The X3 Has Been Around For Two Decades Blue 2018 BMW X3The X3 is a well-established model in BMW's range, with the first generation being launched in 2004. It proved to be successful from the start, with the brand shifting over 600,000 examples of the original before the second generation launched in 2010. The second generation adopted styling that more closely followed that of its larger lineup sibling, the X5, and featured an inline-six engine and all-wheel drive as standard. The third generation X3, pictured above, was unveiled in 2018, again with similar styling to the larger X5. The most powerful variant of the third generation was the X3 M Competition, which SlashGear reviewed in 2023. At the time, we gave it a 9/10 rating, highlighting its potent twin-turbo inline-six engine and generously sized cabin as particularly praiseworthy. The top-spec car was extremely pricey, however, with our fully-loaded tester clocking in at a whopping $91,000. That put it far out of reach of most buyers at the time, but thanks to depreciation, used examples are less eye-wateringly expensive today. Used Examples Depreciate Quickly 2014 BMW X3Virtually all new cars will shed a significant portion of their value over their first few years on the road, although some shed more than others. The best-performing SUVs for value retention fall into one of two camps: Either they're value-oriented in the first place, or they're perceived as being so reliable that buyers continue to flock to them even as they age. The X3 falls into neither of those camps, so it shouldn't come as a shock to most buyers that it will lose a significant amount of value over its first five years. According to depreciation data from KBB, the X3 will retain an average of 36.1% of its sticker price after half a decade. That's a steep fall, but it's not that unusual, given the X3's segment. The Mercedes-Benz GLC is forecast to retain 37.5% over the same time period, while the Q5 fares worse than both, retaining just 33% of its sticker price. With the notable exception of Lexus, virtually all compact luxury SUVs fare poorly in this regard. Some Model Years Are Worth Avoiding 2004 BMW X3Depreciation can be great news for used buyers, as it offers the chance to pick up a lightly used model in great condition for far less than new. However, like most cars, not every model year of the X3 is quite as much of a bargain as the others. According to the NHTSA's database of owner complaints and recalls, the 2007, 2006, and 2004 model years are among the most troublesome, and the 2013 model year also fares poorly. None of that will matter too much to buyers looking for a lightly used X3, though, and the good news is that every model within the last few years has logged a low level of owner complaints. The picture is not quite so pretty when it comes to recalls — the 2020 model has the highest number of recalls of any X3 model year, at 15, while the 2018 and 2019 models aren't far behind, with 11 and 10, respectively. It should be noted that recalls don't necessarily mean that a car isn't worth purchasing. But, it means buyers will have to be doubly careful to check that a used example comes with relevant proof that any necessary recall-related repair work has been carried out before buying it. There Are Plenty Of Rivals Available 2025 Audi Q5The compact luxury SUV segment is packed, and some of the X3's rivals have already been mentioned above. Cars like the Mercedes-Benz GLC, Audi Q5, and Volvo XC60 all have their own appeal for those looking for a foreign-badged SUV and shouldn't be overlooked by buyers. The GLC, for example, offers a plug-in hybrid variant for 2025, with over 50 miles of electric-only range for a price that's similar to the M-badged X3. Like the X3, the Audi Q5 has launched a new generation for the 2025 model year, and it also offers both four-cylinder and six-cylinder powertrain options. Meanwhile, the 2025 Volvo XC60 isn't the freshest car in the segment, but it still offers an appealing mix of Swedish style and sensibility. Another worthy rival is the Genesis GV70 — despite its lack of brand appeal compared to the other options here, its attractive pricing, ample horsepower, and plush interior make it a well-rounded alternative to the X3. Buyers Might Also Want To Consider Other Options In BMW's Lineup 2024 BMW X2Even buyers set on purchasing a car with a BMW badge shouldn't discount other offerings in the brand's lineup. The smaller 2024 BMW X2 isn't quite as potent as the equivalent X3, but buyers can get the M-badged X2 for roughly the same price as the base X3. Then there's the X4, a crossover-style SUV that shares the same platform as the X3 but is yet to receive the same suite of updates as its more conventionally styled sibling. For anyone who's not a fan of the latest, tech-heavy X3 update, that might not be a bad thing. It's also worth mentioning the X5, which is both more costly and more spacious than the X3. While M-badged X5 models will remain out of reach for most X3 buyers even in used form, the more everyday models might be worth a look. According to KBB, it takes the average X5 only a year or so to depreciate to the same price as a new base-spec X3. However, alongside the added space and power of the X5 comes some downsides, most notably that insurance is significantly more expensive on average compared to the X3. Want the latest in tech and auto trends? Subscribe to our free newsletter for the latest headlines, expert guides, and how-to tips, one email at a time.
