Faults:

Nothing major to report so far, just trivial little stuff:

- One xenon headlight had to be replaced.

- Rear seat squeaks (common problem?)

- Passenger side door takes a couple tries to unlock.

General Comments:

This car is amazingly planted and firm; I prefer a car with a lot of character and steering feel, and this definitely does not disappoint. The ride is pretty forgiving; it can get choppy over really bad roads, but for the most part it is comfortable (I have low-pro's too).

Car handles wonderfully, feels RWD for the most part, AWD system makes it an all weather warrior. Initial turn-in is great, steering feedback is amazing, and the brakes are incredibly solid and refuse to fade. DSC isn't really intrusive.

It isn't crazy fast, but the speed comes effortlessly and acceleration is relentless. I'm constantly surprised by how fast I'm actually going :P.

However, the rear seats are pretty cramped. The front seats are great, but even shorter drivers really cut into rear leg room. LOTS of brake dust. Could use more torque in the lower revs. but that can be compensated for by driving Steptronic. The XI models have a bit more clearance than the RWD cars, but I wouldn't drive it in more than a few cm's of snow.

As with all BMW's, dealer charges are really expensive for servicing. Options are really pricey.

Overall, this car is a great driver's machine that doesn't sacrifice all practicality for sheer driving pleasure. Got a good used one for a great deal, never looked back.

Faults:

To begin, the transmission constantly popped out of 3rd gear. This would occur at approx. 60 km/h, when you took your foot off of the gas pedal and were coasting, with the load on the engine. At first it would quietly come out and you would only know something is wrong when you hit the accelerator and nothing happened. Eventually, it started to pop out with force (if you hand was nearby, you would get and hear a strong, loud slap) as well as rattle loudly.

I suggested to the dealer to look at the gearing/teeth that physically hold the shift lever in third, but they decided to replace the transmission in its entirety.

Well, th transmission was replaced and now car turns off while driving (i.e., cruising at 100 - 120 km/h), as well as turns off when accelerating hard (at 5500 RPM and then continuously on/off at 6500 RPM). The battery light turns on, cruise control (if applicable) turns off and the car seems to jump-start itself, due to the fact that it is still moving. Thank goodness it's a manual transmission otherwise starting would be a far more dangerous situation.

Currently (Sept. 6, 2007) the car has been in with dealer garage for 30 days, with no resolution. *Expert* from BMW looked at it and could offer no concrete explanation or fix for the vehicle. Right now it is going through a 7-step plan of repairs to see if this solves the problem. We are currently at Step 5; Replacing the Cam Shaft.

Recent items replaced on this car include: new (well, refurbished) transmission at 54,000 km, numerous engine computers, numerous wiring harnesses, and now a new cam shaft.

Other problems discovered during diagnosis of the car include fuel travelling up the fuel rails and spilling over into the engine and injectors spraying the wrong way (?!?).

General Comments:

This car was my dream car. European sport wagon by a "single malt" manufacturer that handles like a dream and goes like a bat out of hell when pushed. What more could you ask for (well, great fuel economy would be nice, but that's it!).

Besides a few annoyances (early factory tire wear, center console fan going, stereo cutting out) I was planning on owning this car for many years to come. At this point, I am 90 days shy of 3 years and feel that I can no longer consider this car safe to drive. A real shame considering the investment and the reputation of the brand.