We drove the x3s and are 95% set on ordering a new m50 but a bit put off by the interior. I can get on board with the exterior. The x5 just seems like it has it all from a design perspective. Similar (same?) engine vs the m50 too. I had one as a rental last summer and it drove great, though a big "big". I'm guessing the boss will say its too big but curious if anyone else did the comparison.

I test drive both. Interior much nicer in the X5. I do think the exterior of the X5 is starting to look dated. But ultimately it was the size and tuning of the X3 that made it more rewarding to drive. Didn’t want to pay the massive premium to step up to the X5 M60. Got the X3 M50 and have no regrets. Love it.

I cross shopped the X3 M50, X5 40i and GLC 43, hope this helps.
X5 40i: great car, very comfortable, but I don’t need the size (no kids, mostly driving alone). Feels a bit too big for narrow streets with cars parked on both sides. Would consider it later when I have a family.
GLC 43: prefer the interior and it drives like a hatch, which I liked. Downsides are the M139 (great for a 4-cylinder, but at this price point was expecting a 6-cylinder), slightly firm even in comfort, and the DCT feels rough at low speed.
X3 M50: ended up with this as it ticks all my boxes. Perfect size, plenty of space, and the B58 is powerful, smooth, and surprisingly efficient. Interior is probably the weakest, had some rattles even after fixes. Still no regrets, love the car and plan to keep it long term.

I did.

The X5 was much nicer inside, but it was larger than I wanted. It was also more expensive, and I didn’t like the wheel and tire setup required to get all-season tires. The X3 M50 sits lower than the X5 and is smaller in every dimension. Ultimately, size was the deciding factor for me.

I just sold our X5 and moved "down" to an X3. The X5 does drive like a MUCH larger vehicle and it is more "luxurious". The X3 is much more fun to drive and has plenty of room for an empty nest couple. If we were younger and still had kids the X5 is a better choice IMHO. We loved our X5 and had 7 almost trouble free years with it but we are now loving our X3 M50, drives almost like a sports sedan but with the room and utility of a SUV or SAV as BMW likes to call them.

I had an X5 (3 years) followed by an X7 (7 years) followed by the X3 (5 months). If it were me, I would go with the X5 if space is more important to you and choose the X3 if driving pleasure is more important to you.

If you've got big kids, they'll appreciate the bump in rear seat shoulder room. If they're little, they won't notice.

All great info here! The boss sat in the X5 today and its just too big. The x3 IS the best sized vehicle for us I just wish it had the x5 interior!

Yes, but I didn't want the outgoing style and more laidback ride manners.

I really think what is missing here is a G45 X3M variant.

Yes. Loved the familiar high end luxury interior and even preferred the outgoing style of the X5. After test driving 2 different ‘25 X3 M50s, which felt bigger than our 2013 X3, we were sold. We bought the new ‘26 X3M50 with merino in tanzanite blue. No regrets.

We were shopping for a PHEV initially, and shopped American, Japanese, Korean, and German brands. I felt quite at home in the X5 but my wife was to be the primary driver and she thought it was too big. I was also comfortable in the GLC 350 but it was voted down. Other brands didn’t drive anywhere as well as the G45. We’re happy with it, though it’s not a PHEV. Maybe an electric is in the future.

The M50 replaced a loaded '20 X5 M50i with 16k miles. Great vehicle but it was too big and somewhat dated.

I currently have the X5 40i, and will probably "downsize" to the X3 M50 when my lease expires. The X5 is larger than I need, and the 40i doesn't have the handling that I want. I test drove the X3 M50 on Saturday (BMW M Tour at dealership), and I am sold. Yes, it's not as "luxurious" as the X5 interior, but it is far more nimble. I really prefer the smaller size.

Great info folks!

Not unlike the others I cross shopped the M50 with the X5 40 and in all honesty, I was very close to pulling the trigger on the X5.  What caused me to change my mind was asking myself which one I enjoyed driving more and that was hands down the M50.  This was my first “luxury” vehicle and up until now I had always had large family SUV’s.  While part of me really wanted the luxury experience of the X5, if I was honest with myself I knew it had more to do with wanting something “next level” from what I was driving more than really enjoying how it drove.  My kids are grown up, both in college and I no longer needed the space.  Out of everything I test drove the M50 felt the most like a sports car (out of other SUV’s).  The X5 put a smile on my face sitting inside it looking at my surroundings.  The M50 put a smile on my face while in motion.  Although it’s grown on me (a little), I still have days where I look at the interior and scratch my head. 

I’ve given the x3 a lot of flack since its come out yet I am very likely making a swap today from an x5 50e to the x3 m50.

I do swap often so maybe this means nothing..

There is no doubt the x5 materials are far better to touch and look at, however the appreciation for that does wear off. Unless you’re stepping up to the m60i where you get bowers and m adaptive suspension professional the extra luxuries of the x5 don’t really do much for you. The tech is all the same and maybe better in the x3. The x3 finishes on the door are shameful but I can live with it. IMO the doors and hatch feel more solid than the g01 so I think the build quality is there.

Long story short - at a lower x5 trim you’re choosing luxury finishes and a little more practicalality over a better driving experience.

When you spend as much time in the car as me, I’m flipping back to prioritizing the driving experience.