Road Testing The BMW X3 Shows Why This Is BMW’s Best-SellerForbesScotty Reiss, ContributorUpdatedThu, September 24, 2026 at 6:14 PM UTCAdd us on GoogleThe 2026 BMW X3 30 xDriveBMWIt's a question a lot of car buyers have: can a smaller SUV really accommodate the needs of a family, from routines to dog park jaunts to road trips?And then, there's the how-does-luxury-compare-to-popular calculation: can you opt for a luxury model rather than a nicer trim of a popular car brand at the same price?I spent the better part of a week touring Georgia and South Carolina with colleagues, their camera cases and luggage, and summing up what you get for the money in the BMW X3, the brand's best-selling model.AdvertisementAdvertisementOur entry-level test model, the X3 30 xDrive, has a starting price of $51,300—about what the average new car costs today—and comes with a solid array of standard features and edgy modern design. For those features it's easy to see why buyers love this compact SUV. But with three passengers and a full cargo load, will the 30 xDrive deliver enough power and the sharp handling BMW is known for?A 2025 Redesign Upgraded The BMW X3 With 7-Series DetailsFor the 2025 model year BMW completed a facelift of the X3, adding details and features that trickled down from the BMW 7 Series and 5 series. Most notably are the exterior look and interior design language: exterior details include angular headlights and a lighted kidney grille surround, part of an option package.Inside, BMW used a diamond-cut light bar treatment to frame the climate control panel, the center phone and cup holders and the panels on the front doors that hold the door release, air vents and door lock buttons. At night the light bar, which can be customized with a rainbow of color choices, illuminates the cabin and makes the framed controls easier to find.The biggest addition, though, may be the flat multimedia screen that holds a 12.3-inch driver's display and a 14.9-inch touch screen. BMW calls the screen 'curved' because it has slight curve that tilts it toward the driver, though if feels relatively flat and is easy to reach and use.AdvertisementAdvertisementStill, BMW included an iDrive dial controller on the center console, a stalwart in the BMW digital experience that will be phased out as the company adds more intuitive and voice-activated functions from its next design era, Neue Klasse.The front cabin of the 2025 BMW X3 30 xDriveAn Upgraded Tech Interface Shapes the BMW ExperienceAs the company moves toward the full Neue Klasse roll-out, the tech experience continues to improve with better function, integrated maps and voice assistance, all standard features. The system is more responsive and intuitive than in the past, with functions like Apple CarPlay quickly connecting once the initial connection has been made; that hasn't always been the case.The large screen split screen allows you to keep key functions close on the left side; the center screen houses set-it-and-forget it functions like radio presets, ambient color options and vehicle settings.A fixed menu at bottom of the screen offers fast access to climate control and heated seats, though there are selections on the touch screen that allow even more customized settings.AdvertisementAdvertisementThe full screen can be set to display a map, either the native map or a map selected from a connected phone. Since there were three of us on the trip, I opted for the split screen display so Greg, my co-pilot, could easily change the radio. My navigation directions could be viewed on both the driver's display and the head up display, freeing up the center screen for my passengers.The distinct front face of the 2025 BMW X3 39 xDriveBMW's Hallmark: Pick Your Power And PackagesWhile many carmakers like to package features by trim, BMW encourages buyers to build the car they most want to drive. This serves two masters: Buyers can have more control over the price of their car while balancing the features and driving performance that best suits their needs.The BMW X3 30 xDrive, which is the entry model, is powered by a 2.0-liter twin scroll turbo inline 4-cylinder engine with a 48V mild hybrid system that generates 255 hp and 295 pound-feet of torque. Paired with an 8 speed transmission, it has three drive modes—eco, comfort and sport—and all wheel drive, which is standard.The X3 M50 xDrive, which starts at $66,500, increases the power with a 3.0-liter twin turbo inline 6-cylinder engine and a 48V mild hybrid system that generates 393 hp and 428 pound-feet of torque. It also has an 8-speed transmission and is equipped with launch control for instant acceleration from a standstill, a fun feature found in a lot of performance cars. The X3 M50's powertrain is the same as the one found in the entry level BMW X5 40 xDrive, though it comes at an additional $5,600 over the price of the X3 M50.AdvertisementAdvertisementAnd then, there are the packages: Each model can be upgraded with leather seating ($1,500); add a panoramic sunroof, heated steering wheel, remote engine start and accessory panels on the front seat backs ($1,400); or go all with a head up display, surround view camera, interior camera, advanced adaptive cruise control, steering assistance and remote start ($3,450). Some of these items can be added a la carte as can others, such as rear window sunshades, heated rear seats, premium sound or a trailer hitch.It's really all about creating the environment and performance you want.The rear seat of the BMW X3 is larger and more comfortable than expected in a compact SIUVWhat We Learned Spending The Week In The X3When I learned we'd be driving the X3 from Atlanta to Greenville, South Carolina, I worried we'd be cramped for space. The worry was needless. Even though my colleague Greg, who is on the taller side, and I, at five-foot-eight, would both have our seats positioned back a bit, our colleague Michael had no issues. He was able to relax and ride comfortably throughout the week.During the week I climbed into the rear seat just behind the driver's seat to test out the leg room for myself. I found it to be comfortable; the seats are slightly angled, having the effect of letting passengers sink down in the seat a bit and easing the leg-room issue, but not so much as to impede the view of the road.AdvertisementAdvertisementI also worried that the cargo area would challenge us to fit all our gear, but that, too, was not an issue. The cargo space has a capacity of 31 cubic feet of space and thanks to the tall, square roof line, stacking our gear was easy.But Would The Smaller Engine Produce Enough Power?The rear end of the 2025 BMW X3 30 xDriveAnd, then, there's the horsepower bias: as a car reviewer I'm always skeptical of SUVs with a horsepower rating under 300; when carrying a full load of people and gear, the acceleration can feel sluggish. But the X3 30, thanks to added torque and the mild hybrid motor, accelerated quickly and confidently; it's a nice way to supplement the lower power output and keep the price down. I also appreciated the X3's precise handling and command of the road. The wheel felt good in my hands and I felt confident navigating unfamiliar roads. Certainly, the head up display and crisp driver's display graphics helped, too, as did the fact that Greg and Michael could have a conversation or turn up the music while I drove.Or they could continue the debate: Can the entry-level model of a luxury car really replace the features and functions that are popular in more moderately priced cars? I'll stay out of that one; I already know the answer. The nicely optioned and elegantly styled BMW X3 30 xDrive shows that luxury on a budget is possible, and it can be done without compromise.This article was originally published on Forbes.com