The X5 is roomier and more comfortable with a higher driving position, more leg room and more head room which makes the cabin feel much roomier. It is wider and has slightly more back seat space and significantly better rear cargo space. It is a new design and I find the interior to be slightly nicer than the 5 series, although it's the same basic components in both cars. Electronics, iDrive, stereo, etc are identical. The X5 has the advantage of sitting higher for better road view, but that means the center of gravity is higher and you pay a handling penalty in cornering. It also is a heavy vehicle, so the engine works much harder to move the vehicle and you are aware of the vehicle's mass when you drive it. Gas mileage is not great (lots of posts in these forums on that subject. I got an average of 15 mpg with the 4.8i in mixed driving.) The X5 is very quiet on the highway. I consider it to have the comfort and luxury of a 7 series with the convenience of an SUV with all wheel drive. The X5 also has much better interior storage spaces, more convenient cup holders, etc. So it's a little more friendly inside.
The 5 series is quicker and handles better and is much lighter than the X5. Acceleration is more "effortless" because the engine is moving less vehicle mass. The 5 series corners better, which makes sense because it sits lower to the ground, but that also means that it can be a little harder to enter/exit because it sits lower. The interior feels smaller than the X5: less head room, less shoulder room, tighter back seat, less cargo room in the wagon or the trunk. Four adults in a five series is definitely a full house. A 5 series can be equipped with all wheel drive, so you can get winter performance if you want. The 5 series gets significantly better gas mileage.
Bottom line in my opinion: X5 wins on comfort, convenience, and roominess. So if you need a more family friendly vehicle the X5 would be a better choice. The 5 series wins on performance, fuel economy, and sport sedan driving dynamics.
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