BMW 218i vs Lexus Lm500H

What's the difference?

The badge might say one thing, but the 2 Series Gran Coupe sticks to the time-honoured template of being a compact yet comparatively practical three-box, four-door sedan, complete with a big boot.

More importantly, it drives and behaves like a BMW – which means sufficient-to-strident performance depending on grade, athletic dynamics and pleasing refinement on one hand, as well as a stiff price and a hard ride on the other.

A true BMW in name and nature, then..

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

The Lexus LM 500h is luxurious, comfortable, practical, easy to drive and expensive. While it may appear to be the ultimate family car, with only four seats it's limited in terms of how many kids and their friends you can carry. On top of that, the privacy screen introduces accessibility issues to the kids you wouldn't encounter on other vehicles. If you are thinking of a Lexus people mover as your next family car I'd suggest looking at the LM 350h which has seven seats and no privacy screen. If you’re looking at a business class executive van the LM 500h would be perfect. 

BMW is calling the F74 a new-generation 2 Series Gran Coupe, and there have been obvious and even profound changes throughout and underneath, including to some of the sheetmetal.

But this is not an all-new car by any stretch, with the glasshouse, doors and roof amongst many other body items carrying over from the F44.

That now remarkably Kia Cerato-esque nose ushers in new LED lighting motifs and an updated kidney grille, but whether they sit easily with the rest of the car is debatable. Redesigned tail-lights, different colours and new alloys make up the majority of the exterior changes.

Betraying the latest 2 Series Gran Coupe’s newness claims are near-identical dimensions, with that redesigned front end and bumpers contributing to a 20mm increase in the F74’s 4546mm length, while revised suspension and damper settings help account for the 25mm boost in height (to 1445mm). The BMW’s 1800mm width and 2670mm wheelbase remain the same.

There’s a higher level of newness to be found inside.

The LM 500h doesn't look real. More like a concept vehicle with its vertical face wearing that enormous grille. Feels like if you watched it for long enough you’d catch it transforming into some kind of robot. Yet, at the same time its styling is elegant and prestigious.

I have a confession to make. I used this Lexus as my office. Its interior is that comfortable and spacious. I'm also a parent and there were times where it was the quietest place to get some work done.

It also let me observe people's reactions as they walked past with their dogs not knowing what was going on inside behind those tinted windows. The people that noticed were clearly car enthusiasts as they knew what they were looking at and couldn't pass without gaping it awe.

The LM 500h’s interior is superbly plush with thick carpets, beautiful copper metallic trim and nappa leather seats.

As I’ve said, the cockpit up front is less luxurious than the extravagant first class section in the back behind that dividing wall.

And yes, I’ve seen large screens before but nothing that stretches the width of the vehicle.

During the media presentation at its launch, BMW described the 2 Series Gran Coupe as being almost as large as a 1990s E46 3 Series, and it is in all major dimensions except wheelbase.

Plus, being a front-drive-biased/transverse engine proposition instead of rear-wheel drive should make it roomier than the F74’s iconic ancestor.

The sense getting in is that this is certainly not too low or cramped as per a more-traditional coupe, with plenty of space for legs and shoulders, while even the optional sunroof fitted to our 218 left us with headroom to spare.

The redesigned dash is a visual and operational treat, with crisp, clear instruments, a logically presented and intuitive centre display screen offering fast and easy operation, excellent ventilation and ample storage. Full marks here.

Better still, attaining the perfect driving position is possible for most people, on brilliantly supportive front seats. This is the stuff BMW does right.

Improvement suggestions for the next update? Some people may complain about the somewhat less-than-premium feel of some of the lower-lying plastic trim; not everybody will love the swatches of colour stitching (we love it); why does the steering wheel have to be so wide-of-rim? Side and rear vision is restricted by fat pillars, rising shoulder lines and a shallow rear window; and there is quite a bit of road noise that enters the cabin at speed.

Still, even the back seat is sufficiently spacious for most users, with the sole exception of taller folk having to negotiate a sloping rear roofline. If you’re below 180cm, this should be fine. Most amenities minus overhead grab handles are also fitted.

Further back, the boot is surprisingly accommodating, with 430 litres of cargo capacity that’s enhanced by a 40:20:40 split-fold backrest, and the aperture should be big enough for bulkier loads, but the lack of a spare wheel will be bad news for many buyers. The supplied tyre-repair kit is just not good enough.

But, you know what is good enough? The engines BMW builds, that’s what.

You might be able to take Lexus out of Toyota but it's very hard to take Toyota out of Lexus and this particularly applies to the practicality of the LM 500h.

Every day I discovered new compartments, tray tables and storage areas. There are so many cabinets, lockers and hidey holes that we almost left my belongings (an entire family of plushie toy capybaras) behind because there are so many places to check.

Of course, I'm talking about the rear compartment here because up front there's not much storage. In fact, it proved to be quite a problem in that I had nowhere to put my bag with somebody sitting next to me and no area behind the front seats to stow it, either.

Talking of seats, the LM 500h only has four of them, with two up front and two in the rear. Up front, the seats are supportive and large, but the rear seats - those are, well... have a look at the images.

We’re talking two large captain's chairs that look as though they’ve been removed from the first class section of a plane.

And while this might be suitable for businesses shuttling a couple of executives to and from meetings, for a family, even with two children, the extra couple of seats a third row offers would come in handy.

The LM 350h has seven seats over three rows and no privacy screen. A far better choice for families.

For device charging there are USB ports up front and in the rear. There are wireless phone chargers for those in the back seats but not up front.

The LM 500h has a cargo capacity of 752 litres with all seats in place.

The Lexus LM 500h sits at the top of its range and is without a doubt one of the most expensive people movers on Earth with its list price of $220,888.

As you would imagine the standard features list is as extensive as it is extravagant.

For starters, while the regular LM 350h has two rows of seating in the rear (seven seats all up, including the front two), the 500h has the third row removed and just two super luxurious and enormous fully reclining seats fill the entire space. It’s like a theatre back there.

That theatre theme keeps going with a media screen in the back so large it stretches the width of the vehicle. Seriously, it's a 48-inch screen to watch movies or connect to your device.

The sound system is probably the best I’ve experienced - a spine tinglingly incredible 23-speaker Mark Levinson set-up.

What else can I tell you? Those rear seats are upholstered in beautifully soft semi-aniline leather. They’re heated and ventilated with a massaging function and... ridiculously comfortable.

There’s four-zone climate control, windows which have an electronic shade that turns the glass opaque, there are wireless phone chargers in the doors and carpet throughout so thick you sink down into it as you step inside.

Our LM 500h was upholstered in the 'Solis White' leather which also brings contrasting and mesmerising copper metallic trim.

Oh, and there’s a wall with an electric glass screen that can be raised or lowered to separate the rear passengers from the driver.

I should have mentioned this earlier. The kids loved it, but these parents spent a lot of time telling the 10- and three-year old not to put the screen up again.

The rear occupants, aka the kids, can also lock the screen in place. Which they did, and so sound proof is the dividing wall that we can only just hear their uproarious laughter.

Up front, the cockpit is comfortable but it’s clear all the space and luxury is for those being driven around.

Still, the front seats are leather with heating and ventilation, there’s a 14-inch media screen and 12.4-inch digital instrument cluster, plus a head-up display. Sat nav, Apple CarPlay and Android Auto are also standard.

Three F74 powertrain choices are available for Australia in 2025. And none even remotely reflect what their respective badges imply on the boot.

The 218, for instance, is not powered by a 1.8-litre engine, but BMW’s long-lived B38 1.5-litre three-cylinder turbo petrol unit. Making 115kW of power at 6500rpm and 230Nm of torque between 1500rpm and 4600rpm, drive is channelled to the front wheels via a seven-speed dual-clutch transmission (7DCT).

With a kerb weight of 1420kg, the 218 has a power-to-weight ratio of 81kW per tonne, helping it achieve the 0-100km/h sprint time of 8.6 seconds, on the way to a 230km/h top speed.

Not enough? The 220 features the ubiquitous B48 2.0-litre (not a 2.2-litre) four-cylinder turbo petrol engine/7DCT combo, pumping out 150kW at 6500rpm and 300Nm from 1450-4500rpm. Tipping the scales at 1525kg for 98.4kW/tonne, its 0-100km/h time is 7.3s and top speed is 250km/h.

Want more? Stretching to the M235 xDrive sadly doesn’t mean a 3.5-litre in-line six, but a modified B48 2.0L/7DCT duo, delivering 233kW at 6500rpm and 400Nm from 2000-4500rpm to all four wheels. Result? Weighing just 50kg more than the 220, it boasts a heady 148kW/tonne, for a 0-100km/h of just 4.9s and a 250km/h v-max.

As with all of the UKL2/FAAR transverse-engine front-to-AWD platform models from non-electric Minis through to sub-X3/3 Series BMWs, you’ll find MacPherson-style struts up front and a multi-link independent rear end out back.

If you’re reading this outside of Australia, you may notice that none of the current F74 models offer mild-hybrid tech, in contrast to their European counterparts. And don’t go expecting any manual gearboxes either, unfortunately.

The LM 500h is a petrol-electric hybrid with a 2.4-litre four-cylinder turbo-petrol engine which makes 202kW/460Nm and works in concert with two electric motors.

The front motor makes 64kW/292Nm and the rear makes 76kW/169Nm. The combined maximum power output of the two motors and the petrol engine is 273kW.

The LM 500h is all wheel-drive and has a six-speed automatic transmission.

OK, so is the 2 Series Gran Coupe cheap to run?

BMW reckons the 218 and 220 will average 6.3 and 6.7 litres per 100km, which means combined average carbon dioxide emissions ratings of 143 and 152 grams/km respectively.

Filling the 49L fuel tank with 95 RON premium unleaded, that translates to around 775km in the 218, and 730km in the 220 between refills.

Predictably, the M235 xDrive uses more, at 7.7L/100km for a CO2 rating of 176g/km. That’s a distance of about 635km.

Over our launch run, which took us from Sydney’s Circular Quay to Wollongong, the 218’s trip meter was reading in the high 8s and about 10 for the M235.

Lexus says after a combination of urban and open roads the LM 500h should use 6.6L/100km. In our own testing we found consumption was higher at 9.4L/100km.

Worth noting my driving environment was mainly a hilly suburban one filled with school drop offs. Achieved some personal bests this week, with one long run to Sydney’s outskirts, only to return in nightmarish peak hour traffic.

Premium (95 RON) fuel is required and the tank size is 60 litres. In theory the driving range is a smidge more than 900km, which drops to around 640km using our real-world average.

Earlier, we mentioned that the 2 Series Gran Coupe is way more expensive than fine alternative sedans like the Mazda3 and Toyota Corolla.

And while that still stands, there is a remarkable solidity and refinement difference between those and the BMW that helps justify the premium. And nowhere is this more evident than from behind the wheel.

Sat on body-hugging seats and clutching that (too chunky) steering wheel, there is a sense of sporty occasion, backed up by quality trim and an aroma of expensiveness.

For a turbo three-cylinder car weighing 1.5 tonnes, the 218 does a lot with a little, offering spirited off-the-line acceleration and pleasingly lag-free throttle responses at lower speeds. You’d never call it fast, but it is a quick point-to-point urban mover. Only the unavoidable three-pot thrum lets you know you’re in the lowest mechanical spec. And, also, the delay at freeway speeds in building momentum when overtaking.

Which is why, for less than five per cent extra, the 220 with the 2.0-litre four-cylinder turbo would probably make a better buy. Sadly, that isn’t on sale yet in Australia, so we missed out on driving it during the Sydney launch. But in the scores of other BMWs and Minis we’ve tested this in, it’s a cracking little powertrain.

Whether the big leap (nearly $25K worth) to the M235 is worth it depends on how fast you drive and how much you value/need AWD. This is a terrifically muscular machine, since it provides rapid performance via a tidal wave of power, even with the lightest flex of your right foot. On-point and on-brand, this fun and fiery flagship possesses the grand-touring spirit that the rakish design and tech-heavy engineering promise.

To that end, in both the 218 and M235, the steering makes the driver feel connected to the car, resulting in precise and controlled handling. The driver-assist safety tech is beautifully calibrated and nuanced in its intervention, and the brakes are second-to-none.

What is also on-topic for a BMW is the firm suspension, despite the adaptive dampers fitted as standard equipment.

It isn’t stiff or overly uncomfortable, but bumps are certainly always felt, and they’re accompanied by fairly constant road-noise drone over some surfaces.

As such, you’re constantly reminded that dynamic athleticism is the priority here, rather than sumptuous comfort. We’ve experienced much worse from BMW, but a magic-carpet ride isn’t what’s in store for the 2 Series Gran Coupe owner.

So, what’s our verdict then? The 218 is a rorty little tryer that never fails to involve the driver, while the M235 ushers in an elevated level of acceleration, grunt and grip. We suspect that the 220 will be the Goldilocks-zone happy medium.

For (largely) better as well as for (occasionally) worse, these drive and feel like a BMW should.

Quite simply, driving the LM 500h is like piloting a limousine on stilts. Superbly comfortable, but with an elevated driving position that offers outstanding forward and side visibility, the LM 500h is an easy vehicle to drive for long periods of time.

A digital rear vision mirror means visibility behind is good and unobstructed by the privacy screen or the seats.

The drawbacks are down to the lack of space up front, with the driver’s chair limited in its ability to recline or slide back due to the bulkhead behind it.

And that's compounded by the lack of cabin storage for bags if the front passenger seat is taken.

As for the rear passengers there aren't many people movers offering this level of comfort, except perhaps the Zeekr 009.

Variable suspension that adjusts continuously keeps the vehicle composed and provides a high level of comfort for those in the rear. At the same time, the LM stays nice and flat through roundabouts while remaining civilised over speed bumps.

And then there's the acceleration, which, while not supercar-like is incredibly brisk for a van. The all-wheel drive system provides outstanding traction in wet and slippery conditions, too. 

Our family used the LM daily for everything from school runs to shopping trips and weekends away and not only was it fun to drive, our lucky rear passengers enjoyed sitting high and being able to see clearly out their windows along with the luxury of a giant movie screen.

The Lexus  LM 500h is yet to be tested by ANCAP so it doesn't have a safety assessment score. There is, however, a high level of safety tech onboard including AEB which can detect pedestrians, cyclists, motorcyclists and other vehicles, emergency steering assist, lane keeping assistance, road sign recognition, rear cross-traffic alert, front and rear parking sensors as well as six airbags.

For child seats there are ISOFIX points and top tether anchor mounts on the two rear seats. We have a forward facing child seat and found it easy to install.

A space-saver spare wheel is located under the boot floor.

Here, however, is where BMW can do a bit better.

While the five-year/unlimited-kilometre warranty is where most premium brands are, it falls short of several Asian alternatives. Roadside assistance is for just three years and there is no capped-price servicing.

Service scheduling is also condition-based, meaning the vehicle will alert the driver when a service is imminent. This may not suit everybody, and we always recommend at least every 12 months or 10,000km, just to be on the safe side.

BMW does offer pre-paid service packs that take in basic maintenance for the first five years at $2369 or $3782, including brake-pad replacement, which works out to be about $475 and nearly $760 annually respectively. There is also a cap on mileage during that time frame: 80,000km.

Lexus covers the LM 500h with a five-year, unlimited kilometre warranty. 

The Lexus Encore Platinum program is complimentary for LM owners for three years, providing 24-hour roadside assist, a loan vehicle or pick-up/return service at service time, 'On Demand' vehicle evaluation options, valet and airport parking benefits as well as exclusive offers and event opportunities.

Servicing is recommended annually or every 15,000 kilometres, and impressively, pricing is capped at $695 per service over five years.