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Audi’s 2023 SQ5 delivers the rare combination of sports car acceleration and family-hauler comfort—its 349-hp turbocharged V6 launches to 60 mph in about 4.7 seconds while the optional air suspension smooths out the worst roads[1]. Edmunds owners call it “a combination of sports car and comfortable SUV, very adaptable to all my different driving needs”[2]. But here’s the hidden flaw: IIHS dropped the updated side impact rating to “Acceptable” and rear passenger protection in the moderate overlap test scored only “Marginal”[3]. That’s a surprise for a $56,500 SUV.
Why This Review Matters
The compact luxury performance SUV segment has exploded with choices. Buyers cross-shopping the 2023 SQ5 typically consider the BMW X3 M40i, Mercedes-AMG GLC 43, and Porsche Macan. What makes the SQ5 interesting is its positioning—genuine muscle wrapped in a package that works for school drop-offs and weekend mountain drives.
For $56,500 when new, you got 349 horsepower, quattro all-wheel drive, and one of the best infotainment systems in the business[4]. The 2023 model carried over mostly unchanged from 2022, though Audi continued refining package content. The real questions are: does the performance justify the price, and do the new safety test results change the calculus? Let’s dig in.
Key Specifications
| Category | 2023 Audi SQ5 |
|---|---|
| Engine | 3.0L Turbocharged V6[1] |
| Horsepower | 349 hp @ 5,400 rpm[1] |
| Torque | 369 lb-ft @ 1,370 rpm[1] |
| 0-60 mph | 4.7 seconds (Car and Driver est.)[1] |
| 1/4 Mile | 13.5 seconds[1] |
| Top Speed | 155 mph (electronically limited)[1] |
| Transmission | 8-speed Tiptronic automatic[1] |
| Drivetrain | Quattro AWD[1] |
| Fuel Economy | 18 city / 24 highway / 21 combined mpg[4] |
| Cargo Capacity | 25.9 cu. ft. (seats up)[4] |
| Base MSRP | $56,500[4] |
| Warranty | 4 years / 50,000 miles[4] |
Performance & Driving Dynamics
That 369 lb-ft of torque arrives at just 1,370 rpm[1]. What does this mean on actual roads? Zero turbo lag. Stomp the throttle from a standing start and the V6 responds instantly—no hesitation, no waiting for boost to build. Car and Driver estimates a 4.7-second sprint to 60 mph and a 13.5-second quarter mile[1].
Here’s what the spec sheet doesn’t tell you: the optional S Sport air suspension transforms this SUV’s personality completely. One owner nailed it—”The SQ5 with the sport air suspension allows the car to turn into a spirited driving machine, but also allows the comfort for a long road trip without feeling every bump”[2]. That flexibility separates it from the Porsche Macan, which corners harder but punishes you on potholed city streets.
The 8-speed Tiptronic responds sharply in Dynamic mode. Quick, decisive shifts. But switch to Comfort and it mellows—relaxed, content to hold taller gears. Where it falls short? Steering feel. Compared to Porsche or BMW, the SQ5’s wheel feels numb. You know what the front tires are doing, but you don’t feel it through your fingertips. That’s the trade-off Audi made for a softer ride.
And the quattro system genuinely earns its reputation. One owner tackled “4-5 inches of snow/ice transitioning through N. Texas/N. Mexico like a champ while other Tahoes were spinning out”[2]. The rear limited-slip differential helps rotate the back end when you push hard through corners—subtle, but noticeable.
Interior & Technology
The 2023 SQ5’s cabin remains a class leader. One owner described it as “like being in a spaceship”[2]—and honestly, that’s not much of an exaggeration. The 12.3-inch Virtual Cockpit displays navigation with Google Earth photorealistic imagery, and the customizable layouts let you prioritize whatever information matters most. An enthusiastic owner called it “a absolute show-stopper… beautiful, intuitive, and a pure joy to use”[2].
Material quality punches above the $56,500 base price. Soft-touch surfaces cover most contact areas, and the quilted Nappa leather seats on higher trims feel genuinely luxurious. Front seat space is excellent. Rear passengers get adequate room—workable for trips under four hours. Cargo space measures 25.9 cubic feet with all seats in place[4].
The MMI infotainment system includes a central dial and touchpad with handwriting recognition. Apple CarPlay and Android Auto come standard. But here’s the thing: Audi’s option packages stack up fast. Want the Bang & Olufsen sound system, surround-view camera, and adaptive cruise control? That’s extra. A well-equipped Prestige trim easily pushes past $70,000.
One gripe from owners: the MMI system can be finicky. Consumer Reports noted issues with inconsistent automatic CarPlay startup—”sometimes its flawless, other times requires manual reconnect”[5]. Your mileage may vary.
Safety Ratings: The Surprise
Here’s where things get complicated. And honestly, this might change your decision.
IIHS subjected the 2023 Q5 to updated crash tests that include rear passenger protection—and the results weren’t as strong as previous years. In the updated moderate overlap front test, the rear passenger dummy showed elevated neck tension (2.1 kN) and the overall rear passenger rating dropped to “Marginal”[3]. The updated side impact test earned only “Acceptable” overall, with the rear passenger pelvis scoring “Marginal”[3].
Front occupant protection remains solid. Small overlap front tests (both driver and passenger sides) earned “Good” ratings[3]. Roof strength scored “Good” with a strength-to-weight ratio of 5.16[3]. Front crash prevention earned “Superior” for vehicle-to-vehicle scenarios—the system avoided a collision entirely at 25 mph[3].
Headlights vary by trim—and this matters more than you’d think. The Prestige trim’s LED projectors earned a “Good” rating[3]. But Premium and Premium Plus trims scored only “Acceptable” due to reduced visibility on left curves[3]. If you frequently drive dark country roads, factor this into your trim decision.
Nighttime pedestrian crash prevention earned “No Credit”—the system barely slowed in most night scenarios[3]. For families prioritizing safety tech, see our guide on Audi Q5 years to avoid.
The Reliability Question
No sugarcoating here: some owners have reported serious mechanical issues.
One Edmunds reviewer documented head gasket failure and timing chain housing problems at just 22,000 miles—”Car spent 5 weeks in the shop – all covered by warranty but 22k miles to have this level of engine work is less than ideal”[2]. Another owner experienced total electronic system failures three times within three drives, including complete instrument cluster shutdowns and airbag warnings[2]. (Audi corporate eventually replaced that vehicle entirely under lemon law provisions.)
That said, plenty of owners report trouble-free experiences. The turbocharged 3.0L V6 has been in Audi’s lineup for years and is generally robust when properly maintained. Audi vehicles can exceed 150,000 miles with diligent service—but don’t defer maintenance or use anything less than the specified full synthetic oil.
If buying used, get a comprehensive pre-purchase inspection from an Audi specialist. Verify remaining warranty coverage. And check service records for any previous engine work.
Ownership Costs
Budget for premium fuel—always. Running regular gas can cause engine knock and reduced performance. Edmunds estimates $211 per month in fuel costs at 21 mpg combined[4]. That adds up to roughly $2,500 annually for average driving.
Tires are the hidden expense. One owner noted the SQ5 “loves to chew through P-zero sport tires. At $350+/tire… that is annoying”[2]. The optional 21-inch wheels look fantastic but wear expensive rubber that needs replacement every 25,000-35,000 miles. Stepping down to 20-inch wheels saves money long-term.
Scheduled maintenance follows Audi’s standard intervals—roughly $300-500 for minor services at dealership rates. Independent shops specializing in German vehicles typically charge 20-30% less. The 4-year/50,000-mile warranty provides some peace of mind for early ownership[4].
Competitors Compared
| Model | HP | 0-60 mph | MPG Combined | 2023 MSRP |
|---|---|---|---|---|
| 2023 Audi SQ5 | 349[1] | 4.7 sec[1] | 21[4] | $56,500 |
| BMW X3 M40i | 382[6] | 4.4 sec | 21 | ~$59,000 |
| Mercedes-AMG GLC 43 | 385[6] | 4.7 sec | 20 | ~$60,000 |
| Porsche Macan S | 348 | 4.6 sec | 20 | ~$63,000 |
The BMW edges out the SQ5 on raw power and straight-line speed. The Porsche handles sharper through corners—one owner called it “the best cornering SUV or 4 door vehicle I’ve driven”[2]. But the Mercedes? Multiple owners criticized its cramped rear seat—”my wife and I were very turned off by the back seat feeling like it was a literal after thought”[2]. The GLC 43’s 9-speed transmission also drew criticism for hunting between gears.
Where the SQ5 wins: interior technology, ride comfort with the air suspension, and all-weather confidence. The MMI system consistently outscored competitors for intuitive operation[2].
Pros and Cons
Pros:
- The 349-hp V6 delivers 369 lb-ft of torque from just 1,370 rpm—instant throttle response for confident acceleration without any turbo lag[1]
- Optional S Sport air suspension provides the rare combination of sporty handling and genuine long-distance comfort that the Porsche Macan can’t match[2]
- Virtual Cockpit with 12.3-inch configurable display and Google Earth navigation ranks among the best digital gauge clusters in any segment[2]
- Quattro AWD with rear limited-slip differential handles snow and ice confidently—owners report outperforming truck-based SUVs in winter conditions[2]
- Front crash prevention earned IIHS “Superior” rating, avoiding collisions entirely at 25 mph in vehicle-to-vehicle testing[3]
Cons:
- Updated IIHS tests show “Marginal” rear passenger protection in moderate overlap front crash—a concern for families[3]
- Premium fuel required plus 21 mpg combined means annual fuel costs run roughly $2,500 for average driving[4]
- Some owners report significant engine issues—head gasket failures and electronic malfunctions documented before 25,000 miles[2]
- Sport tires on 21-inch wheels wear quickly at $350+ per tire, adding substantial ongoing ownership expense[2]
- Nighttime pedestrian crash prevention earned “No Credit” from IIHS—the system barely responds in dark conditions[3]
Final Verdict
The 2023 SQ5 accomplishes what most performance SUVs struggle with: it’s genuinely quick when you want excitement and genuinely comfortable when you want relaxation. That adaptive air suspension is the secret weapon—dial it up for canyon carving, dial it down for highway cruising. Interior quality remains best-in-class, and the Virtual Cockpit continues to embarrass competitors’ efforts.
But those new IIHS results give pause. If you frequently carry rear passengers—especially kids—the “Marginal” rear protection rating deserves consideration. And the “No Credit” nighttime pedestrian detection means you’re relying more on your own attention in dark conditions.
- Choose the 2023 SQ5 if: You prioritize interior quality and all-weather capability, want a comfortable daily driver that can still embarrass sports cars at stoplights, and don’t frequently carry rear passengers on long trips.
- Look elsewhere if: Rear passenger safety tops your priority list, you want the strongest night-driving safety tech, or fuel economy matters to your budget—the BMW X3 M40i and Genesis GV70 3.5T both offer alternatives worth considering.
For those interested in comparing model years, check out our reviews of the 2022 SQ5 and 2024 SQ5. And if you’re exploring Audi’s broader SUV lineup, our best Audi SUV guide breaks down which models suit different needs.
FAQs
Is the 2023 Audi SQ5 reliable?
Reliability is mixed. The turbocharged 3.0L V6 has a generally solid reputation, but some owners report major issues like head gasket failures and electronic malfunctions before 25,000 miles[2]. If buying used, a pre-purchase inspection by an Audi specialist is essential. Vehicles still under the original 4-year/50,000-mile warranty provide more peace of mind.
Did the 2023 Audi Q5/SQ5 lose its Top Safety Pick rating?
The 2023 Q5 platform faced tougher IIHS tests. While it still earns “Good” ratings for front occupant protection, the updated moderate overlap test showed “Marginal” rear passenger protection, and the updated side impact test dropped to “Acceptable” overall[3]. This likely affects any Top Safety Pick designation.
How does the 2023 SQ5 compare to the Porsche Macan?
The Macan corners sharper—one owner called it “the best cornering SUV or 4 door vehicle I’ve driven”[2]. But the SQ5 with air suspension rides more comfortably on rough roads, has a more spacious cabin, and offers superior infotainment technology. The Macan starts roughly $7,000 higher and sacrifices interior space to accommodate its engine/transmission layout.
References
- Car and Driver. (2022). 2023 Audi SQ5 / SQ5 Sportback Review, Pricing, and Specs. https://www.caranddriver.com/audi/sq5-2023
- Edmunds. (2022). Used 2023 Audi SQ5 Consumer Reviews. https://www.edmunds.com/audi/sq5/2023/consumer-reviews/
- IIHS. (2023). 2023 Audi Q5 4-door SUV Safety Ratings. https://www.iihs.org/ratings/vehicle/audi/q5-4-door-suv/2023
- Edmunds. (2022). 2023 Audi SQ5 Review & Ratings. https://www.edmunds.com/audi/sq5/2023/
- Consumer Reports. (2023). 2023 Audi Q5 Reliability. https://www.consumerreports.org/cars/audi/q5/2023/reliability/
- Kelley Blue Book. (2023). 2023 Audi SQ5 Premium Plus. https://www.kbb.com/audi/sq5/2023/premium-plus/
I am a senior automotive analyst at Autvex. Expert vehicle evaluations, in-depth reviews, and objective analysis helping readers make informed automotive decisions with years of industry experience.
