The X3 range is available with 218bhp 2.5-litre and 272bhp 3.0-litre petrol engines. There are also three diesels: a 175bhp 2.0, a 218bhp 3.0 and the twin-turbocharged 3.0sd model, which develops 282bhp and a whopping 428lb ft of pulling muscle for smooth and swift acceleration.

Choose from standard or sports suspension. The latter stiffens the car, but it’s not a set-up we’d recommend because even in standard form the ride is firm and fidgety. The handling, on the other hand, is so crisp and free of normal 4x4 roll that you’re largely unaware you’re in an off-roader.

Apart from a throaty engine note at high revs, often necessary to maintain pace away from motorways, the X3 is a haven of peace. The engines and transmission are as smooth as in an executive saloon, and road and wind noise are negligible at speed.

Not only is the X3 expensive to buy; it will also be expensive to run in petrol form due to its high fuel consumption. Both petrol models sit in the top tax bracket as a company car, too. The good news is that its desirability will keep resale values high and therefore leasing rates relatively low.

The dashboard is predominantly covered in a classy, soft-touch material and the dials and switches are arranged in an uncluttered, straightforward fashion. However, some of the switchgear and panels use shiny, cheap-feeling plastics which spoil the ambience.

There’s an impressive list of both active and passive safety equipment, with electronics to prevent skids or brake lock-up, and to keep you moving should you venture off road or need to tow. In our 2005 security tests we couldn’t break into the X3.

You get the high-level driving position that’s part of the attraction of a 4x4, and a wide range of seat and wheel adjustment in a spacious cabin. The X3 feels compact enough to thread through city streets, although some drivers may find that rear visibility is compromised.

There’s so much room in the back of the X3 that it makes the bigger X5 seem unnecessary, especially as the smaller car also manages to have a bigger boot. However, the big transmission tunnel running down the spine of the car leaves little foot space for a third rear passenger. Disappointingly, the rear seats don’t fold totally flat when carrying oversize loads.

Every model comes with alloy wheels, a four-wheel-drive and hill descent control system, climate and cruise control, plus a CD player. Too many luxuries are extra. The range-topping 3.0sd has 18-inch light alloys, parking sensors and six-speed auto gearbox.