Compact Crossover/SUVs or SAV (Sport Activity Vehicle) as BMW likes to call theirs remain one of the most popular in any carmakers line up. And it’s definitely true for BMW – the X3 is the brand’s best-selling model. So, when it comes time to make an all-new version, you know that there’s intense pressure to get it right. After all, you have a lot of X3 fans, and also a lot of competition from almost every other manufacturer from Toyota Land Cruiser to Mercedes.
So now we have the 2025 BMW X3, the all-new 4th generation of the Sport Activity Vehicle that’s always been one of the best blends of sport, luxury and function you could buy. So how does the new model stack up? Let’s take a look!
Bold New Look
While the 3rd generation X3 felt like an evolution of the previous model, the all-new is a bold new look that we think many will like, but it may not suit everyone’s taste.
The X3 has picked up the crisp, but blocky lines that we’ve seen especially in the maker’s EV offerings like the ultra-amazing XM we tested – not bad company! It also looks notably larger than the previous model, while in truth it is only about an inch longer and wider.
Up front, there’s BMW’s iconic kidney grille – but it’s appropriately sized for the vehicle (some other models have been a bit oversized) and makes a statement that’s definitively BMW. Projector headlights with L shaped running lights form an aggressive frown. A perfect look, since our tester had the M Sport package with sharp angular lines falling to a blacked out lower grille that looks ready to gulp some air or unsuspecting small car.
The profile may be our favorite view, with a steeply swept-back A pillar, and gently falling roofline that looks very sporty, and creates a high shoulder line that gives some visual muscle. While it’s a little more slabby looking than the previous model, there’s no doubt about the athletic intentions, especially with our tester’s optional 21-inch Individual Jet Black Bicolor alloy wheels – these may be the most dynamic-looking rims in the brand’s portfolio – we just love ‘em and the way they fill out the wheel wells.
The rearview really brings home the XM vibe, with a wide flat surface that spans the back hatch. Arrow-shaped LED taillights feel very BMW, and the lower angled lines echo the front for a cohesive design. And the famous BMW logo (known as the Roundel) remains prominent and proud – this is most assuredly BMW!
Speaking of bold, we also loved our tester’s Artic Race Blue metallic paint – along with the 21-inch rims, it really made our X3 pop! We’ve seen more subtle colors, but we think this design really benefits from some visual heat. With 10 colors available, there are plenty of choices sure to suit your taste.
Technology On Display
Inside is pure BMW – on fast forward.
Opening the door the first thing that captures your eye is the BMW Curved Display (their name) that sweeps across the dash and looks handsome and expensive. Yes, the Kia K4 we recently tested had a sweeping display as well, but this one just looks better – kind of like when they upgrade you to the nicer TV at the electronic store!
And it is an impressive display, thanks in part to the latest iDrive 9 info-tainment system. While the big touchscreen is easy to use, we’re pleased that BMW kept the rotary control knob on the center console, giving you a choice on how to dial things in.
We’re less thrilled with the BMW Interaction Bar – which neither serves drinks or pairs up singles – but offers a touch-style haptic control for the climate control. Like the VW system we’ve experienced in the new I.D. Buzz, this slider-and-haptic control system is less than intuitive, you eventually figure things out.
A nice touch is the flat bottom steering wheel with the ultra-fat M Sport leather rim, that doesn’t obscure any of the display, something our Kia K4 unfortunately did.
Another touchpoint is a small toggle replacing the previous gear shift knob, but it’s easy to use and a quick toggle down to sport mode is just a fingertip away.
The front sport seats on our M Sport model were ultra-adjustable and supportive and heated and ventilated to keep you comfy year-round. We were fooled by the BMW’s faux-leather that it calls Veganza – we thought it was leather!
Along with the high tech and the luxury is a feeling of real spaciousness, with adult friendly rear seats with plenty of legroom and a spacious cargo hold. Fold down the rear seats and the 67.1 cubic feet of cargo space is huge. (Compare to the Audi Q5 at 54 cubic feet).
Luxury Sport
We always look forward to driving any BMW, and the new X3 was no exception.
Under the hood of our tester was a 2.0-liter, turbo 4-cylinder, now featuring 48V mild-hybrid technology. This little four is a powerhouse, and used in many of the brand’s vehicles. The numbers are strong with 255 horsepower and 295 lb.-ft of torque at just 1,600 rpm. With the hybrid tech that means a ton of power down low and the X3 zips away with impressive muscle and smoothness. We don’t see the need, but for the ultimate enthusiast, there’s also a six-cylinder model with 393 horsepower!
We think the four suits the car very well, and the 8-speed automatic is a perfect partner –smooth in the daily grind, but happy to pop off quick shifts in sport mode. There’s even a cool Boost Mode activated by the left-hand paddle shifter that gives some extra juice, and even changes the gauge display while it gives you the Mario super kart treatment. Fun!
And you’ll find yourself enjoying Sport Mode often, this is an engine that loves to rev with a throaty growl and instant response to the gas pedal. (There are also Personal and Efficient drive modes available.) Being an M Sport we know the X3 is aimed at the enthusiast driver, but we feel like there was a subtle change here in the new model, with a feeling of luxury with sporty intentions backing it up, rather than vice versa. Probably the perfect blend for most buyers who want a great daily driver that can boogie when the urge to dance hits.
Handling is also responsive, and there’s a delicacy to it that lets you have fingertip precision and the X3 can be driven very quickly with surprising ease, it’s a joy on a twisty road.
That large interior is impressively quiet at road speeds, and the suspension is nice and supple in comfort mode. Combined with the excellent seats and advanced info-tainent system, it’s a great place to spend time, whether it’s the daily crawl or a long getaway road trip.
Xceptional Value?
Being BMW’s most popular model means the Bavarians keep a keen eye on the bottom line.
With standard all-wheel-drive on all models now, the entry level BMW X3 30xDrive starts at $49,500. Last year’s model started at $2,000 less. But AWD was optional, so it’s a very modest step up for all the new goodies.
Our tester was nicely loaded, and included Arctic Blue paint ($650), Driving Assistance Professional ($1,700), M Sport Package ($2,200), 21-inch wheels ($1,550), Parking Assistance Package ($200), Premium Package ($3,400), and Front Ventilated Seats ($500). Add in $1,175 for Destination, and we rang the bell at $60,875.
We think the Volvo XC60 is a stylish competitor, and at $64,040 is a bit more expensive, but also offers the premium SAV experience – drive then decide. We also think the Mercedes GLC is a great choice, and would be priced close to the BMW X3.
Premium looks, advanced tech, high quality and great fun to drive, the all-new 2025 BMW X3 is sure to remain the brand’s best-seller!

Ben Lewis grew up in Chicago, and after spending his formative years driving sideways in the winter – often intentionally – moved to sunny Southern California. He now enjoys sunny weather year-round — whether it is autocross driving, aerobatics, and learning to surf.