The simple, uncluttered layout, accented with touches of wood or aluminum, lends an air of elegance. The door handles have a nice brushed-aluminum finish, and the soft plastic surfaces feel more like leather. The switchgear is ergonomically well designed. Available steering wheel controls allow a number of adjustments, including climate, stereo and integrated phone without removing a hand from the wheel.

Despite the X5's high seats, many drivers will drop the bottom cushion down, and that can obscure much of the exterior from view, not to mention stuff located a few feet around it. For that reason, Park Distance Control is valuable. Sensors on the front and rear bumpers detect parked cars, tricycles, and other obstacles, and an alarm beeps faster as you maneuver closer to whatever might stand in your way. When the tone goes solid, the bumper is very close to the object. Different tones are used front and rear, making it much easier and quicker to parallel park in tight spaces.

The front seats are excellent: firm and supportive, with lots of adjustments. The rear seats are also comfortable, and the seatbacks can be reclined. Despite the X5's greater exterior height, however, headroom is nearly identical to that of the 5 Series wagon.

The X5's cargo capacity is no better than a 5 Series wagon's. Nor is hauling capacity one of its strengths. With a maximum 54.4 cubic feet of cargo space (23.8 cubic feet with rear seat in place), the X5 has less volume than nearly every other luxury SUV. The moment we opened the rear hatch, we were struck by the relative lack of space. Power switches in the cargo area move the reclining seatbacks forward for some additional capacity, but the seats move slowly, and the gain in space is small. The rear seats are split 40/60 and can be folded down to provide a fairly flat, though not perfectly flat, surface.

The height of the load floor makes it more difficult than it is with most wagons to load cargo, and even more difficult than some other SUVs. The X5's cargo deck stands about 35 inches off the ground. That's five inches higher than in the Land Rover Discovery, a highly capable off-road vehicle with high ground clearance and a live rear axle. Caesar the English mastiff, who has ascended his dog ramp into dozens of different SUVs, found climbing into the BMW a real challenge because the pitch was so steep.

The X5's rear hatch is split, with a window that flips up and a tailgate that drops down. Reflectors on the tailgate's jamb enhance safety when accessing gear at night. A sturdy rollaway cargo cover can be removed for carrying larger items.

The rear window can be opened independently of the tailgate, convenient for quickly loading small items. A remote release opens the rear window, but this only led to a frustrating sequence of events: We'd press the release, climb out, and close the driver's side door. Closing the door would increase air pressure inside the cabin just enough to lift the open rear window, which would then flop down and latch itself again. So we'd arrive at the back of the vehicle only to find that we had to walk back to the driver's seat and re-release the hatch. Do this a few times in succession and you begin to feel like an idiot. This can also make the X5 a bit inconvenient when dropping passengers at the airport. Armed with groceries, you'll more likely open the rear hatch with the keyless remote control, which works well.