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The 2023 BMW X3 earns its position as BMW’s bestselling vehicle by delivering composed handling, strong fuel economy, and a roomy interior that competes well against the Genesis GV70, Acura RDX, and Porsche Macan[1]. This third-generation X3 carries forward relatively unchanged after receiving a midcycle refresh for 2022, benefiting from updated styling and an upgraded user interface. During extended testing, the X3 proved itself as a capable all-rounder—though its interior design lacks the premium flair of some competitors[1].
Why This Review Matters
The compact luxury SUV segment has never been more competitive. Buyers cross-shopping the X3 will encounter strong alternatives from nearly every premium brand—the Genesis GV70, Acura RDX, Porsche Macan, and Audi Q5 all compete for the same customers. Understanding where the X3 excels and where it falls short helps narrow down a decision that can cost anywhere from $45,400 to over $72,000 depending on configuration[2].
Specifications Overview
| Category | X3 sDrive30i | X3 xDrive30i | X3 M40i |
|---|---|---|---|
| Engine | 2.0L Turbo 4-cyl[1] | 2.0L Turbo 4-cyl[1] | 3.0L Turbo 6-cyl + 48V Hybrid[1] |
| Horsepower | 248 hp[1] | 248 hp[1] | 382 hp[1] |
| Torque | 258 lb-ft[1] | 258 lb-ft[1] | 369 lb-ft[1] |
| 0-60 mph | ~6.0 sec | ~6.0 sec | 4.1 sec[3] |
| Drivetrain | RWD | AWD | AWD |
| Fuel Economy (Combined) | 29 mpg[2] | 28 mpg[2] | 26 mpg[2] |
| Starting MSRP | $45,400[2] | $47,400[2] | $59,950[2] |
A high-performance X3 M sits at the top of the lineup starting at $72,900, producing 473 horsepower but returning just 20 mpg combined[2]. For most buyers, the base four-cylinder provides ample performance with significantly better efficiency.
Design and Practicality
BMW positions the X3 between the compact X1 and the larger X5, which offers optional three-row seating[1]. The X3’s proportions make it manageable in urban environments while still providing genuine utility. A tall roofline creates large windows all around, giving occupants excellent outward visibility no matter where they sit[1].
Cargo capacity measures 28.7 cubic feet behind the rear seats—competitive for the class[1]. The X3 can tow up to 4,400 pounds when equipped with the optional 2-inch receiver, which Edmunds notes is among the best for a small luxury SUV[1]. Child seat attachments are easy to access, and there’s plenty of space for large child seats in the rear.
Where the X3 falls short is interior design. Edmunds specifically calls out that the cabin lacks the premium style of some competitors[1]. The materials quality is acceptable, but buyers coming from a Mercedes GLC or Genesis GV70 may find the presentation less inspiring. Cleverly designed rear headrests are short enough not to obstruct the driver’s rearview mirror visibility[1].
Performance and Efficiency
Both available engines are powerful and fuel-efficient—a combination that defines the X3’s character[1]. The base 2.0-liter turbocharged four-cylinder produces 248 horsepower and 258 lb-ft of torque, returning up to 29 mpg combined with rear-wheel drive[1][2]. For buyers wanting more thrust, the M40i’s 3.0-liter inline-six delivers 382 horsepower and rockets to 60 mph in just 4.1 seconds according to Car and Driver testing[3].
Around turns, the X3 provides composed and enjoyable handling that’s often associated with BMW[1]. Edmunds awards the performance a 7.5 out of 10, noting the steering is typical of a modern BMW—too easy to turn in Comfort mode, making it imprecise, while Sport mode adds heft and quickness[1]. During a week-long test, the X3 felt more competent than some of BMW’s current sedans.
Car and Driver describes the M40i’s turbocharged inline-six as providing “almost brutish power,” making the X3 fun to drive and willing to arc around corners better than expected—though it doesn’t quite match Porsche Macan levels of athleticism[3]. One consistent criticism: the auto stop/start feature operates with rough edges[3].
At idle, the X3 is so silent you’ll want to check the tachometer to confirm the engine is running[1]. There’s slight wind noise from the driver’s window at highway speeds, and engine noise becomes pronounced under moderate to hard acceleration—though Edmunds notes it’s not unpleasant[1].
Technology and Features
The 2023 X3 benefits from the updated user interface introduced during the 2022 refresh. BMW offers a wide variety of standard and optional features for personalization[1]. Key available packages include:
| Package | Price | Key Features |
|---|---|---|
| Premium Package | $2,650 | Heated front seats, head-up display, wireless charging[4] |
| Convenience Package | $1,650 | Power liftgate, panoramic moonroof[4] |
| Parking Assistance Package | $700 | Surround-view camera, parking sensors[4] |
| M Sport Package | $4,100 | Sport suspension, M steering wheel, exterior styling[4] |
| Dynamic Handling Package | $1,400 | Variable sport steering, adaptive suspension[4] |
Edmunds recommends the sDrive30i with the Premium package as the best combination of value and features[1]. Active Cruise Control with Stop & Go maintains a set distance from the vehicle ahead and can bring the X3 to a complete stop and resume speed automatically[1]. Parking Assistant Plus guides the X3 into parallel spots with minimal driver intervention[1].
Premium fuel is required for optimal performance across all X3 variants.
Safety Ratings
The 2023 X3 earned IIHS Top Safety Pick+ status, acing all tests under stricter 2023 requirements that demand better occupant protection in side crashes and nighttime pedestrian detection[5]. Cars.com noted that even among Top Safety Pick+ winners, the X3 stands out by earning top grades in all required tests[5].
| IIHS Test | 2023 BMW X3 Rating |
|---|---|
| Small Overlap Front (Driver) | Good[6] |
| Small Overlap Front (Passenger) | Good[6] |
| Moderate Overlap (Original) | Good[6] |
| Moderate Overlap (Updated) | Good[6] |
| Side Impact (Updated) | Good[6] |
| Roof Strength | Good (4.49 strength-to-weight ratio)[6] |
| Head Restraints | Good[6] |
| Headlights | Good[6] |
| Front Crash Prevention (Vehicle) | Superior[6] |
| Front Crash Prevention (Pedestrian Day) | Superior[6] |
| Front Crash Prevention (Pedestrian Night) | Superior[6] |
NHTSA awards the X3 a 5-star overall safety rating, with 5 stars for frontal barrier crash and side crash categories[1]. Minor demerits in IIHS testing involved an inadequately urgent seat belt reminder and LATCH child safety anchors buried too deep in the seat[5].
Ownership Costs
BMW offers a 4-year/50,000-mile basic warranty and a matching 4-year/50,000-mile drivetrain warranty[1]. Complimentary scheduled maintenance covers the first 3 years or 36,000 miles[1]. RepairPal gives the X3 a reliability rating of 3 out of 5, ranking it #16 out of 18 among luxury compact SUVs[1].
Three recalls affect certain 2023 X3 models[1]. The most significant involves rear cargo rail attachments that may become damaged in a rear crash, affecting nearly 282,000 vehicles from 2018-2023. Dealers will replace the attachment bolts free of charge. Prospective buyers should verify recall completion using the NHTSA website.
Edmunds estimates driving costs at approximately $175 per month based on 15,000 annual miles[1]. BMW maintenance costs typically run higher than mainstream brands, though the included complimentary maintenance helps offset expenses during the first three years.
Pros and Cons
Strengths:
- Both engines deliver impressive power with segment-leading fuel economy—the base four-cylinder returns up to 29 mpg combined[1][2]
- Earned IIHS Top Safety Pick+ with top grades across all required crash tests, including the stringent 2023 nighttime pedestrian detection requirement[5]
- Handling remains engaging and composed through corners, living up to BMW’s sporting reputation despite the SUV body style[1]
- Roomy interior accommodates passengers comfortably with large windows providing excellent outward visibility from all seating positions[1]
- Class-leading 4,400-pound towing capacity when properly equipped, outperforming most compact luxury SUV competitors[1]
Weaknesses:
- Interior design lacks the premium visual appeal of competitors like the Genesis GV70 and Mercedes-Benz GLC[1]
- Steering in Comfort mode feels vague and too easy to turn, requiring Sport mode for better feedback and precision[1]
- Auto stop/start feature operates with rough edges that disrupt the otherwise refined driving experience[3]
- Side mirrors are described as “puny” by Car and Driver, creating potential blind spots despite available monitoring systems[3]
- RepairPal reliability rating of 3/5 ranks near the bottom (#16 of 18) among luxury compact SUVs[1]
Final Verdict
The 2023 BMW X3 delivers on its promise of sporting dynamics in an SUV package while offering genuine practicality for families. The combination of strong safety ratings, impressive fuel economy, and engaging handling makes it a compelling choice in a crowded segment. Edmunds Top Rated competitors like the Genesis GV70, Acura RDX, and Porsche Macan offer alternatives worth considering, but the X3 holds its own as a capable all-arounder[1].
- Choose the X3 if: You want BMW’s signature driving dynamics, prioritize fuel efficiency, and value comprehensive safety features over interior glamour.
- Consider alternatives if: You want a more visually striking interior design, prefer a sportier steering feel without requiring Sport mode, or prioritize long-term reliability above driving engagement.
FAQs
Is the 2023 BMW X3 reliable?
RepairPal rates the X3’s reliability at 3 out of 5 stars, ranking it #16 out of 18 luxury compact SUVs[1]. BMW covers the first 3 years or 36,000 miles of scheduled maintenance at no charge, which helps offset ownership costs during the warranty period. Three recalls affect certain 2023 models, so buyers should verify all repairs are completed.
What is the best 2023 X3 trim to buy?
Edmunds recommends the sDrive30i with the Premium package as the best combination of performance, value, and features[1]. The 248-horsepower four-cylinder provides adequate power while returning up to 29 mpg combined. The Premium package adds heated front seats, head-up display, and wireless charging for $2,650.
How safe is the 2023 BMW X3?
The X3 earned IIHS Top Safety Pick+ status for 2023, achieving top grades (Good or Superior) in every required test category[5][6]. NHTSA awards a 5-star overall safety rating. The X3 stands out even among Top Safety Pick+ winners by earning the highest possible rating in all crashworthiness and crash prevention evaluations.
How does the X3 compare to the Audi Q5?
Both compete directly in the compact luxury SUV segment with similar pricing and features. The X3 offers slightly more engaging driving dynamics and better fuel economy, while the Audi Q5 provides a more refined interior design. Safety ratings are comparable, with both earning top marks from IIHS and NHTSA.
What is the fuel economy of the 2023 X3?
EPA estimates range from 29 mpg combined for the rear-wheel-drive sDrive30i down to 20 mpg combined for the high-performance X3 M[2]. The popular xDrive30i with all-wheel drive achieves 28 mpg combined, while the M40i returns 26 mpg combined. Premium fuel is required across all variants.
References
- Edmunds. (2023). 2023 BMW X3 Review & Ratings. https://www.edmunds.com/bmw/x3/2023/
- AutoNation. (2023). 2023 BMW X3 Trim Levels. https://www.autonation.com/vehicle-research/2023-bmw-x3-trim-levels
- Car and Driver. (2023). 2023 BMW X3 Review, Pricing, and Specs. https://www.caranddriver.com/bmw/x3-2023
- Edmunds. (2023). 2023 BMW X3 Specs & Features. https://www.edmunds.com/bmw/x3/2023/features-specs/
- Cars.com. (2023). 2023 BMW X3 Named IIHS Top Safety Pick+. https://www.cars.com/articles/2023-bmw-x3-named-iihs-top-safety-pick-471083/
- IIHS. (2023). 2023 BMW X3 Safety Ratings. https://www.iihs.org/ratings/vehicle/bmw/x3-4-door-suv/2023
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.
