2026 BMW X5: Is It Actually Worth the Money?

The BMW X5 has been the default answer for Australians who want a big, fast, comfortable luxury SUV for the best part of two decades. Now there is an all new one, the fifth generation, and it lands in BMW showrooms in the final quarter of 2026.

It also costs more. BMW Australia has priced the new X5 from $143,900 before on road costs, which is about $4,000 more than the outgoing diesel it replaces. Add on road costs and you are looking at well over $150,000 before you tick a single option box.

So is it worth that kind of money, which version makes sense, and what should you look at before signing? Here is our take.

Quick answer: Yes, if you want a large luxury SUV that does everything well and you plan to keep it for five years or more. Our pick is the X5 40d xDrive diesel at $143,900 before on road costs. It has 670Nm of torque, can tow 3,000kg and is the more sensible long distance car. Buy the petrol 40 xDrive only if you value performance over fuel bills, and wait for the 2027 plug in hybrid only if you can charge at home.

What's new about the 2026 BMW X5

This is not a facelift. The new X5 brings across a lot of the technology BMW first showed in its Neue Klasse electric cars. The most obvious change is inside, where BMW Panoramic iDrive replaces the old curved screen. A display band runs the full width of the windscreen base, there is a 3D head up display, and a 17.9 inch central touchscreen sits in the middle of the dash.

The styling is more upright and simpler, with a tall kidney grille, flush door handles and wheel sizes from 21 to 23 inches. BMW says the X5 is now engineered for five different drive systems worldwide: petrol, diesel, plug in hybrid, fully electric and, later on, hydrogen.

Australia gets two of those to start with, both 3.0 litre straight sixes with 48 volt mild hybrid assistance, an eight speed automatic and xDrive all wheel drive.

2026 BMW X5 price and specs in Australia

Here is what BMW Australia has confirmed so far. Prices are before on road costs.

• X5 40d xDrive (diesel): $143,900. 230kW and 670Nm, 0 to 100km/h in 6.1 seconds, official combined fuel use of up to about 7.0L/100km on the European WLTP test.
• X5 40 xDrive (petrol): $145,900. 294kW and 540Nm, 0 to 100km/h in 5.3 seconds.
• X5 50e xDrive (plug in hybrid): due from early 2027, price to be confirmed. 360kW, 700Nm and up to 101km of electric range on the WLTP cycle.
• iX5 60 xDrive (electric): due from early 2027, price to be confirmed. 425kW, up to 845km of WLTP range and up to 460kW DC fast charging.

Standard equipment on both launch models includes the M Sport package, 21 inch alloy wheels, adaptive suspension, a panoramic glass roof and the new Panoramic iDrive cockpit. Braked towing capacity is 3,000kg with a 140kg ball weight, and the body is just under five metres long at 4,998mm.

One more number matters. Every version will attract luxury car tax, which in 2026 to 27 is charged at 33% on the value above $80,809 for most cars. That tax is already baked into BMW's list price, but it is a big part of why large luxury SUVs cost what they do in Australia.

Is the new X5 actually worth the money?

On paper, the value case is stronger than the price rise suggests. The $4,000 increase over the old diesel buys more power, mild hybrid assistance, a far newer cabin and a long list of standard gear that used to cost extra. Against its direct German rivals, $143,900 is not out of line either.

Where the X5 earns its price is breadth. It is genuinely quick, it tows properly, it has room for five adults and their luggage, and BMW backs it with a five year, unlimited kilometre warranty. Owner feedback on the outgoing model has consistently praised its blend of comfort and driver appeal, and that is the part rivals tend to find hardest to copy.

The case against is simple. You are paying well over $150,000 on the road for a five seat SUV, and a lot of the money goes on badge, tax and technology you may not use. If you mostly drive around town with two kids, a well specified Lexus RX or Volvo XC90 will do 90% of the job for considerably less. And with any first year model, there is a small risk of early software bugs while a brand new operating system beds in.

Our verdict: the X5 is worth it if you will use what makes it special, such as the towing, the performance and long highway trips, and if you keep cars for a long time. If you change cars every three years, the depreciation on a $150,000 SUV deserves a hard look first.

Which X5 should you buy?

X5 40d xDrive: the sensible choice

The diesel is our pick for most Australian buyers. That 670Nm of torque arrives low in the rev range, which is exactly what you want with a caravan or horse float on the back. It should also use noticeably less fuel than the petrol on long country runs, and it is the cheapest way into the range.

X5 40 xDrive: the driver's choice

For $2,000 more you get 64kW more power and a car that is close to a second quicker to 100km/h. If your driving is mostly urban and you rarely tow, the petrol six is smoother and sweeter. Just budget for premium unleaded.

Wait for the X5 50e or iX5?

If you can charge at home, the plug in hybrid's claimed 101km of electric range could cover most weekday driving without using any fuel. The electric iX5 is the more radical option. Keep in mind that the novated lease FBT exemption for electric cars only applies when luxury car tax was never payable on the car, which means a price under the $91,661 threshold for fuel efficient vehicles in 2026 to 27. An iX5 is almost certain to sit well above that, so do not expect a tax break.

What to negotiate when buying an X5

BMW still sells through independent dealers rather than a fixed price agency model, so there is room to negotiate. How much depends on timing and stock. A brand new model with tight early supply will see thinner discounts than a runout car. Here is where we would focus.

• Runout and demonstrator stock of the outgoing X5. As the new model arrives, dealers need to clear the old one. A late plated previous generation xDrive30d can be a genuine bargain if you do not need the newest tech.
• Service Inclusive. BMW sells prepaid servicing packs that fix your maintenance costs. Ask for one to be included in the deal rather than paying separately.
• Options and packs. On a new model, dealers often have more flexibility on extras than on the car's price itself.
• Your trade in. Get an independent valuation first so you know if the dealer is under pricing your current car to make the discount look bigger.
• Timing. End of month and end of quarter, especially December and June, are when dealers are chasing targets.

Know which X5 you want, or already have a quote in hand? Tell us what you're after and we'll use our network to find the best deal anywhere in Australia, whether that is a new, demo, near new or used X5. We can also look over a quote or listing you already have and tell you if it's a fair price.

The alternatives worth considering

The X5 has strong rivals, and each one makes a different case. Prices below are before on road costs unless noted.

• Mercedes-Benz GLE: the updated GLE range, including the new GLE 350 d and GLE 450, starts from about the same money as the X5. Mercedes sells at one fixed national price, so there is little to haggle on. Choose it if you want a softer, more comfort focused ride.
• Audi Q7 and Q8: an all new third generation Q7 has been revealed with V6 diesel power and five, six or seven seats, and is expected here in 2027. Until then, the outgoing Q7 may be the deal of the segment if you need seven seats. The Q8 is the sleeker, pricier sibling.
• Porsche Cayenne: the sportier, more expensive choice. The new Cayenne Electric starts from $167,800, and the petrol and plug in hybrid Cayenne continue alongside it.
• Volvo XC90: starts under $100,000 with a mild hybrid B5 or a T8 plug in hybrid with up to 77km of WLTP electric range. Seven seats and a calm, Scandinavian cabin for a lot less money.
• Lexus RX: from $90,350 for the RX 350h Luxury, up to $127,700 for the RX 500h F Sport Performance. It is the value and reliability pick, with hybrid efficiency, but it does not tow as much and feels less sporty to drive.

If your budget has a hard ceiling around $100,000, the RX and XC90 are where we would look. If you want the full luxury SUV experience without compromise, it is the X5 and GLE that deserve a back to back comparison.

Frequently asked questions

How much is the 2026 BMW X5 in Australia?

The new X5 starts from $143,900 before on road costs for the 40d xDrive diesel. The 40 xDrive petrol is $145,900 before on road costs.

When does the new BMW X5 arrive in Australia?

The petrol and diesel models arrive in the fourth quarter of 2026. The X5 50e plug in hybrid and the electric iX5 follow from early 2027.

Should I buy the outgoing X5 instead?

It can make sense. A runout or demonstrator previous generation X5 is a proven car backed by BMW's five year warranty (on a demo, check how much of it remains, as it starts from first registration), and dealers will be keen to clear stock as the new model arrives. You miss out on the new cabin technology and the extra power.

How much can the BMW X5 tow?

BMW quotes a 3,000kg braked towing capacity with a 140kg maximum ball weight.

Does the BMW X5 have a five year warranty?

Yes. New BMWs in Australia come with a five year, unlimited kilometre warranty.

Pricing is BMW Australia's announced manufacturer list pricing as of October 2026 and excludes on road costs. Rival pricing is from manufacturer Australia sources and may change. All images: BMW Group. Interior images show the X5 M60e, which is not part of the Australian launch range.