BMW 218i vs Peugeot 508

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 Peugeot 508 Sportswagon GT PHEV proves wagons can be extremely stylish but looks aren’t everything and it is an expensive option compared to its luxury rivals. It earns its place with the premium interior but the safety could be improved on and the tech is more confusing than it needs to be. But this wagon offers an alternative for families who are sick of being in an SUV yet still need a little extra space. 

My son didn’t go nuts over this and complained about his view.

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 design of this wagon is what wins it the most points. It is a damn fine specimen with the sleek lines in the body panelling and the sexy rear that looks well-proportioned for its 4790mm length.

Dark, narrow windows, 18-inch alloy wheels and a minimalist-looking nose, with fang-like daytime-running lights, all enhance its sporty look.

The rear lights have Peugeot’s signature ‘claw’ design and there’s something suggestively fun about seeing a twin-exhaust on a wagon!

On the interior, the multimedia system takes centre stage and the dashboard looks quite sleek, despite all of the deep cutaways.

The steering wheel is in the compact style that Peugeot is known for but it makes the cockpit feel driver orientated.

The quilted Nappa leather trims and shiny piano-black accents (with the piano-key controls) make for a refined cabin space.

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.

The front row gets the most space and you’ll be able to get into a comfortable position even if you’re tall.

However, it is a low car with its 142mm ground clearance and there may be a few grunts as you get in and out (or is it just me?).

My seven-year old loves how easy it is to climb in, though he didn’t have the best view out of the windows because the sills sit high.

The footwell lip also sits quite high, which isn’t an issue until you can’t open your door very wide and then it’s clumsy in a tight parking space.

The electric front seats are very comfortable and the extendable under-thigh support helps to minimise leg fatigue on a longer journey.

Surprisingly, for my 168cm (5'6") height, I have to sit much further back than I ordinarily would to get a comfy driving position.

In the back, you have plenty of headroom but behind my driving position, the legroom could be better.

An adult would still find it fairly comfortable on a longer journey so long as they aren’t behind someone tall. The seats themselves are well-cushioned and you sit in, rather than on top of them.

Individual storage options are good for this class with a dual-opening middle console, glove box and a great utility cubby next to the transmission shifter.

There is also a shelf underneath the centre console that houses the wireless charging pad and two USB-A ports but it’s a tad awkward to use and even see the ports when you're seated.

The amenities are good in the rear but for a top-spec model it’s lacking the luxury items you might expect, like heated seats and climate control but you’ll enjoy map pockets, reading lights, two USB-A ports and directional air vents.

It also has a fold-down armrest with two shallow cupholders, that in a quick turn, might spill their cups!

The boot is a great size at 530L with all seats in use and you can bump it to 1780L with the rear seats folded.

You get a level loading space and a 60/40 split with a ski-port in the back seat, which opens up your storage options.

There is a tyre repair kit rather than a physical spare but the tailgate is powered, which I always like.  

The technology is a mixed bag. It looks sharp and the touchscreen multimedia system is responsive but isn’t as easy to use as others I’ve sampled.

It doesn’t have a lot of accessible information or customisations available but it is easy to connect to the wired Apple CarPlay. There is also wired Android Auto for those users and built-in satellite navigation. 

The 12.3-inch digital instrument panel is the prettiest piece of tech in the car and there is more customisation available to make it feel yours.

Considering its price point and top-model status, it's more obvious that you miss out on premium items like three-zone climate control, faster USB-C connections and a head-up display.

Keeping things simple, there are only two variants for the 508 Sportswagon and our test vehicle is the top GT plug-in hybrid model that will cost $82,915 before on road costs.

That’s a $1000 price hike from last year and sets it well above its rivals with the Audi A4 coming closest at $78,169 (MSRP).

Given its rivals are well known for their luxury, the 508 has a fair bit to live up to but its styling and use of premium materials, like the quilted Nappa-leather trims, help it earn its position within the ranks.

The interior gets some other lovely big-ticket items with the eight-way electric front seats and a two-way memory position function on the driver’s seat.

Both front seats feature a heat function, adjustable lumbar support and a fabulous massage function. The ‘Cat Paw’ option is particularly nice!

However, the back seat misses out on these ‘top-end’ creature comforts.

There is a sunroof optioned on our test vehicle which adds $2500 to the price tag but creates an airy cabin in what would ordinarily be a bat-cave-esque space with that black headliner.

Only one colour is included in the price and our ‘Pearl White’ costs an extra $1050.

Technology has been revitalised with a new 10-inch touchscreen multimedia system and a 12.3-inch digital instrument cluster.

Dual-zone climate control, push-button start, keyless entry and a powered tailgate all add some practicality to every day life, too.

Phone mirroring tech like wired Apple CarPlay and Android Auto are easy to connect to and there are a bunch of charging options available throughout the car, including a wireless charging pad up front.

All-in-all, though, the features list isn’t as long as the price point might suggest.

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 GT plug-in hybrid model has a 1.6-litre, four-cylinder turbo-petrol engine, as well as an electric motor that sits on the front axle. It has an eight-speed automatic transmission that produces smooth gear changing driving the front wheels.

The combined outputs are 165kW and 360Nm which means you have a good amount of power for this sized car but it’s not a performance wagon as its 0-100km/h sprint time is 8.3 seconds.

The lithium-ion battery has a small 11.8kWh capacity and will get from 0-100 per cent in three and a half hours on an 11kW system. On my standard house plug, it took closer to six and a half hours.

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.

Peugeot says you can travel up to 55km on pure electric function, however my morning (return) school run is 38.4km and the electric range was spent by the time I parked in my garage after starting on a full charge. 

Under optimal conditions, where you’re utilising both the engine and motor, the GT PHEV has an official fuel cycle consumption of 1.5L/100km.

After charging it three times, travelling 444km on a mix of open/urban roads and using 33 litres of fuel, my real-world usage came to 7.4L/100km.

You absolutely get the best economy when you regularly charge it but sometimes you just don’t get the time to!

You'll need 43 litres of premium 95 RON unleaded fuel to fill the tank which, using our real-world average consumption figure, translates to a driving range of around 580km.

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.

The 508 Sportswagon is an odd car to drive. Around the city, the steering makes it feel like you’re in a go-kart and you may over-correct until you get used to it. 

On the open-road, it feels like it gets into its groove but the power reserves feel a tad too shallow as the engine can complain with only a light load. 

The suspension is well padded and you won’t notice too many bumps but you do get a fair bit of wind and road feedback at higher speeds. 

Because of the narrow windows, I am surprised by how great the visibility is but you feel tiny when you sit next to a big SUV in traffic!

That said, it corners beautifully and taking this on a winding coastal road is super fun.

The brakes are very responsive, which is great in stop-start city traffic but can make it feel a little jerky while navigating a car park.

And on that note, because of the funky steering feel, it takes a moment to calibrate your senses with what the car is doing.

Once you get used to it, it’s simple to park but the quality of the 180-degree camera system is pretty rubbish for where this car sits in the market.

The 508 has most but not all of the safety features you expect to see in a family car.

The active bonnet is a great feature as it lifts up in a collision to help minimise pedestrian injuries. 

However, in the modern market and this being a top-spec model, I am surprised it's lacking a few safety features, namely rear cross-traffic alert.

Other standard safety equipment includes blind-spot monitoring, LED daytime running lights, forward collision warning, lane keeping aid, lane departure warning, intelligent seat belt reminders, front and rear parking sensors, a 180-degree view reversing camera, traffic sign recognition, a driver attention monitor, and adaptive cruise control with stop and go functionality.

The 508 has a maximum five-star ANCAP safety rating from testing done way back in 2018 and it only sports six airbags, which is low for a family vehicle.

The 508 has autonomous emergency braking with car, pedestrian and cyclist detection and is operational from 10.0– 80km/h (5.0 – 140km/h for car).

There are ISOFIX child seat mounts on the outboard rear seat positions and three top tethers in the second row but two child seats will fit best. Front passenger comfort may be compromised when a 0-4 rearward facing child seat is installed.

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.

On the 508 you’ll enjoy a five-year/unlimited km warranty and the battery is covered by an eight-year or up to 160,000km warranty, which is great.

You can pre-purchase either a three- or five-year servicing plan and the five-year plan costs a flat $2100 or an average of $420 per service which is very reasonable for this class. 

Servicing intervals are at every 12months or 20,000km, whichever occurs first.