BMW X5 vs Subaru Outback

What's the difference?

This is a luxurious prestige five-seater brimming with BMW’s latest design and technology that’s not only practical for weekly family duties but can also embrace spirited driving with the push of a button. A great all-rounder for families that like a sporty edge. 

Over 30 years and seven generations of Outback in Australia, the latest might just be the best.

It's great to drive, even better to sit in, very easy to live and willing to go further than most equivalent large SUVs at its price point.

The styling is definitely divisive, with purists unhappy that the long, crossover wagon silhouette is now gone, but what we have instead is a family-friendly vehicle that pleases on so many fronts.

We’d go as far as saying the latest Outback might be the most-rounded Subaru currently available, and great value to boot. And the base AWD is all the SUV most people will ever need.

That’s not bad for something this square!

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

The latest front-end design features subtle revisions to BMW’s signature 'kidney' grille theme, highlighted by slimmer matrix LED headlights with chevron-shaped DRLs that incorporate the turn indicators.

There’s also an ‘iconic glow’ function, which illuminates the twin-grilles at night in-sync with the external courtesy lights when approaching and departing the vehicle. Lower front air-intake and tail-light treatments have also been revised.

The dash features a new curved instrument panel. Based on BMW’s latest generation 'iDrive' operating system, it consists of a 12.3-inch driver’s info display and 14.9-inch control display presented across the same seamless glass surface.

The control display’s touchscreen functionality has allowed dash buttons and switches to be minimised.

This new design dash has a blend of synthetic leather trim and dark brown/high-gloss woodgrain surfaces, along with new LED ambient lighting and gear-selector design.

The rear seat is sumptuous and spacious, even for someone my height (186cm). There’s ample knee and headroom and it can seat three kids in comfort, but for adult passengers wanting that 'business class' feel it would be ideal for two.

My only criticism of the new instrument display is that with more than 30 applications displayed on the expansive control screen, it can be distracting at times trying to visually locate and operate these functions while driving.

And, depending on sun angle, there were also complaints from different front seat passengers on different days about blinding glare caused by the dash’s high-gloss woodgrain inserts. Fortunately, the driver is unaffected by these reflections.

Historically, Subarus have majored on quirky. Kooky even.

Think buggy ‘60s 360, offbeat ‘70s 1400, spacey ‘80s Vortex, futuristic ‘90s SVX, Alfa-esque ‘00s pre-facelift Tribeca, dorky ‘10s Exiga. We’d go as far as saying that, in over 50 years, only a handful of Subarus have looked normal. And they’ve all been boring. The beautiful ones, like the original Impreza and ’03 Liberty, remain stunning.

But quirkifying such an important family car in such a mainstream segment… that's risky. And we’re here for Subaru’s boldness. We just wish the details weren’t so heavy handed.

Longer, larger and wider than any prior version, the 2026 Outback shares its stretched platform architecture fundamentals with the latest Forester. That’s a sound basis. Just Xeroxed up by about 15 per cent. Boxy shape. Deep glass. Wide doors. Form over function. This is designed to make life easier.

What you make of the Wilderness’ visual features, including the dramatic grille mask, SUBARU wording, painted trim surrounds and cladding-on-cladding (behold the Kia Tasman-like squared-off wheel arches if you dare) is down to personal taste. Eyes be damned! But it is so far-removed from the elegant grace of the previous model that some might argue a name change would at least have silenced the critics.

On the other hand, besides fugly being in Subaru’s DNA, a large, lofty SUV is probably truer to the term ‘outback’ than on any elegant and gracefully-silhouetted crossover wagon.

Meanwhile, the polar opposite is true inside. It’s as if the interior designers strove for class and calm, with none of the exterior styling’s visual noise, or shouting in the Wilderness’ case. And there is the luxury of space, vision and scope, further enhancing the Outback’s usefulness. That you can’t see the body, just the beautiful cabin’s detailing, elevates this Subaru. Unlike in the previous model, which was a bit of an aesthetic and functional mess inside.

With its 2165kg kerb weight and maximum allowable weight of 2885kg, our test vehicle can legally carry up to 720kg.

That should be ample for five adults (even better for kids) and their luggage, of which up to 100kg can be carried on the roof rails using a rack or roof box (both in BMW's accessory range).

Powered upper and lower tailgates provide good access to the luggage area, which is carpeted and equipped with a roll-out privacy screen, load securing hooks, a 12-volt accessory outlet and a first-aid kit stored behind a removable side panel.

The space-saver spare and tools are stored below the hinged load floor, so all luggage must be removed to access them.

Internal luggage space with the rear seat upright is 650 litres (0.65 cubic metres) which expands to 1870 litres (1.87 cubic metres) with the rear seat folded flat.

A useful load-carrying feature when the rear seat’s backrest is upright is a hinged centre section that folds forward and flat to carry long and narrow items.

These can stretch all the way from the tailgate to the dash if need be, which could be handy for carting anything from skis to home hardware purchases (firmly secured, of course).

It’s also rated to tow up to an impressive 3500kg of braked trailer, which matches the class benchmark for one-tonne utes.

However, given that tow-ball download (TBD) is usually around 10 per cent of trailer weight, the X5’s maximum TBD rating of only 140kg could be a challenge if 3500kg towing is required.

Front of cabin storage includes a big bottle-holder and bin in each front door, a glove box and on the right-hand side of the dash a pull-out driver’s bin, both of which are felt-lined.

The centre console, in addition to its wireless phone-charging pad, USB-A port and 12-volt outlet, has two small-bottle/cupholders up front and a large box at the rear, housing a USB-C port and topped by a padded dual 'brochure fold' lid that double as an elbow-rest for driver and front passenger.

Rear seat storage includes a large-bottle holder and bin in each door and pockets on each front seat backrest. The rear of the centre console has two storage nooks for small items in addition to its air-vents, two USB-C ports and a 12-volt outlet. There’s also a handy tablet-mount and USB-C port on each front seat backrest, which is great for long trips.

Folding down the rear seat’s centre armrest reveals two pop-out small-bottle/cupholders. And under its hinged lid is a hidden felt-lined compartment that’s ideal for storing slim screened devices away from prying eyes.

Like all Subarus, Outback boasts an interior of very high-quality craftsmanship, being built beautifully, without rattles or noises or jarring trim.

The difference here is just how pleasingly practical and easy yet attractive this environment is, from the moment that wide-opening door opens and shuts with reassuring solidity.

The horizontal dash layout departs from the Tesla-aping portrait screen domination of the previous generation, banishing the confusing and annoying virtual controls for real, live buttons.

But is it original? The layered presentation is attractive and distinctively Toyota… err Subaru. Yes, it is very much like the bZ4X-based Solterra EV’s look inside.

That’s no bad thing from an ergonomic point of view. The driving position is flawless, the seat/wheel/controls relationship considered and the placement of the climate controls, audio system, armrest and storage just right. We’re also happy to see the instrumentation display incorporate various visual choices, including digital analogue-style dials.

A particular callout goes to the slick and speedy tactility of the brand’s latest touchscreen, as well as the (again suspiciously Toyota-like) interface and graphics layout. It’s all good.

But wait, there’s more. The Outback’s front seats are claimed to be particularly supportive, and after hours in them on and off road, they seem to exceed Subaru’s claims.

If you’re expecting regular mid-sized SUV levels of interior space, be prepared to be impressed, because the Outback’s extra sizing outside seems to be multiplied inside. There’s ample room for long legs, big hats, broad shoulders and buxom hips. It all works so well. This is probably one of the best modern SUV interiors, period. Nothing seems to have been overlooked.

The rear seat is presented to please, too. It can seem a bit drab in the lower-line models, but the same virtues of effortless entry/egress, seat comfort, convenience (including air vents, USB ports, cupholders and armrest placement) apply. We noted the lack of road/tyre noise intrusion at speed, too.

Behind the very sixties Jeep Wagoneer-looking rear is a vast luggage area, complete with a low floor, remote rear-seat folding handles, 12V outlet and quality trim. And that space-saver spare lives underneath.

Subaru seems to have designed this car from the inside out and it shows. A rare 10/10 from us.

Bad news first. Model-for-model, each Outback grade is now up around 10 per cent compared to the preceding, more petite and prettier version.

This means the cheapest of the five grades available, known simply as AWD (for all-wheel drive – this seems almost redundant for a non-BRZ Subaru), now kicks off from $48,990. All prices here are before on-road costs.

This includes a proper off-road mode, climate control, synthetic leather trim, a 12.1-inch multimedia touchscreen, 12.3-inch electronic driver display, wireless Apple CarPlay and Android Auto, a powered tailgate, heated front seats with powered driver’s side, chunky roof rails, 18-inch alloy wheels (with a space-saver spare – thank you, Subaru), nine airbags and comprehensive Advanced Driver Assist Systems (ADAS). Check out the safety section further down for more details.

Notes for the facelift, Subaru: Why can’t the base grade come with cloth, rather than clammy vinyl seats?

Next is the AWD Premium. From $53,490, that’s a reasonable ask given its 360-degree-view monitor, sunroof, heated steering wheel, powered front passenger seat and 12-speaker Harman Kardon audio upgrade.

The $56,990 AWD Touring includes Nappa leather, ventilated front seats, heated outboard rear seats, a wireless charger, active lane change, auto-fold mirrors with self-dipping in reverse (c’mon, this should be standard) and glossier alloys.

From here, we’re in new Wilderness territory. Two grades, AWD Wilderness from $59,690, adding more cladding upon cladding, a turbo engine, electronic dampers, 20mm extra ride height, broader 'X-Mode' off-road functionality, a wireless charger, claimed water-repellent seat trim, different fog lights, black-finish alloys and more.

But, strangely, you lose the sunroof, sat-nav, 360-degree view monitor and premium audio. Subaru demand another $3.0K to restore these in the flagship AWD Wilderness Apex from $62,690.

Still no cloth option, though. We’d like a new base AWD grade with the Wilderness mechanical gear and stance but not the extraneous cladding and visuals, and with coarse fabric upholstery, manual option and steel wheels. Maybe call it Leonie for fun.

Anyway, does new Outback represent value for money? One of its main rivals in the sparsely-populated five-seater large SUV class (most have three rows) is the Mazda CX-60. The AWD slots nicely between the slightly cheaper but very basic four-cylinder RWD Pure yet undercuts the much-sweeter six-cylinder AWD version, so we’d answer that with a yes.

Furthermore, when you tally up all that extra stuff, size and space, today’s out-stretched Outback offers comfortably more over the old model than that modest 10 per cent price hike suggests. That’s a win for buyers.

The X5 xDrive40i is powered by BMW’s legendary 3.0-litre DOHC 24-valve in-line six with state-of-the-art technology.

This includes twin-scroll turbocharging, variable valve/camshaft timing and 48-volt mild hybrid technology (delivering up to 9.0kW and 200Nm) using an electric motor integrated with the transmission.

The combined effect is optimised power and throttle response (0-100km/h in 5.4 secs) with minimal fuel consumption and Euro 6d emissions.

It produces 280kW between 5200-6250rpm and 520Nm of torque (this can reach 540Nm with hybrid input) across a remarkably wide and flat peak torque band between 1850-5000rpm, which showcases its flexibility. There’s also auto start-stop and selectable drive modes.

This is paired with BMW’s smooth and sharp-shifting eight-speed torque converter automatic, which combines the best characteristics of a dual-clutch and traditional torque converter transmission.

There’s overdrive on the seventh and eighth gears to optimise fuel economy and the choice of rapid manual-shifting using the steering wheel paddles.

Power reaches its wide tyres through the xDrive intelligent all-wheel drive system, which actively varies the engine’s torque distribution between the front and rear wheels to optimise traction at all times.

BMW’s ‘Efficient Dynamics’ also includes brake energy regeneration with recuperation display and many other standard features to enhance driving safety and efficiency.

Don’t worry, Subaru traditionalists. The Outback again offers a pair of horizontally-opposed 'boxer' four-cylinder engines.

The regular Outback versions are powered by a 2.5-litre twin-cam petrol unit making 137kW of power at 5800rpm and 254Nm of torque at 3700rpm.

Choosing the Wilderness switches things up to a 2.4-litre turbo version delivering 194kW at 5600rpm and 382Nm between 2000rpm and 3600rpm.

Both use a continuously variable transmission (CVT) with eight artificial ‘steps’ for a more torque-converter-like experience. Sadly, no manual gearbox is available.

BMW claims combined average (WLTP) fuel consumption of 9.9-8.5L/100km. Our 415km test comprised a mix of suburban and highway driving and when we stopped to refuel the dash display was showing 10.2L/100km which was line-ball with our own 10.6L/100km figure, calculated from fuel bowser and tripmeter readings.

So, based on our figures, you could expect a realistic driving range of around 780km from its 83-litre tank using standard 91-octane petrol.

Where the Outback regresses compared to its predecessor is efficiency.

Despite a modest 50kg weight rise, the substantially boxier shape is probably behind the jump in petrol consumption, rising nearly one litre per 100km compared to before in the Outback, and nearly 2.5L/100km, in the heavier Wilderness.

The combined average consumption figure for the 2.5-litre naturally aspirated engine is 8.1L/100km, for a carbon dioxide emissions rating of 183 grams per kilometre, while the 2.4-litre turbo manages 9.7L/100km and 228g/km.

Filling the 63L tank, expect an average range of about 777km in the former and just 648km in the latter. Surely, the coming hybrid version can’t arrive soon enough for some buyers.

At least both engines can drink from the standard 91 RON petrol bowser.

So much for the theory. Out in the real world, over a solid day's testing on- and off-road, we found there was a difference of about 1.5L/100km between the regular Outback and the Wilderness.

It’s supremely comfortable, with front bucket seats that offer powered-adjustment of height, reach and backrest angle along with side bolsters that can tighten their grip of your upper torso.

There’s also two-way lumbar support, that adjusts not only how far it pushes your spine forward but also allows that pressure point to be raised or lowered.

Combined with its power-adjustable leather-rimmed steering wheel, it would be hard not to find a comfortable driving position.

Eyelines to all mirrors are good and over-shoulder blind-spots are minimal. Front and rear occupants can talk without raised voices thanks to low engine, wind and tyre noise at highway speeds.

As you’d expect, it has high build quality and a tangibly solid feel as though it was machined from a single block of steel, from the satisfying thuds of its closing doors to the absence of shudders or rattles on a variety of roads.

It also has two personalities, which can be switched in an instant. In 'Comfort' mode it will happily cruise around city and suburbs as a mild-mannered family car, fulfilling daily duties like work commutes, school drop-offs and pick-ups, supermarket shopping and the like.

However, flick the drive mode to 'Sport Plus' and you awaken, well, if not ‘the ultimate driving machine’ then something close.

Its optimised drivetrain and handling settings feel more like a sports sedan than a family car, which can turn any winding mountain road into an engaging experience.

It has impressive reserves of cornering grip and braking force, combined with sparkling engine response and fast sequential manual-shifting at your fingertips.

It feels impressively agile, with all-round response that belies its 2.0-tonne-plus kerb weight, backed by a symphony of sounds from its sublime in-line six.

Confession time. The way the previous Outback drove was profoundly disappointing. The steering felt numb, the ride was too stiff and the car seemed wilfully dull, even in the turbo version.

The contemporary Forester ran rings around it for driving pleasure and refinement.

But Outback number seven is completely different and maybe the best-driving non-WRX Subaru right now.

From the moment you climb on board this vast SUV from Japan, everything feels right – from the driving position and relationship with the controls, to the sumptuously comfy seats and commanding vision all around the vehicle. That’s a promising start.

Push the ignition and press the accelerator down, and the regular Outback 2.5 quietly, gently and smoothly moves off the line. With modest power outputs and a CVT, you might expect it to also sound revvy and droney, but instead the acceleration is strong and throttle responses determined.

We drove this for hundreds of kilometres and never found the performance lacking, even with three adults and their luggage on board, over hilly and even mountainous terrain. Yes, it is possible to have the CVT whining at higher revs, but not within normal driving scenarios. And the quietness and lack of road noise is terrific.

Moving to the Wilderness and its 2.4-litre turbo powertrain, the same applies, except of course mid-range response is significantly faster and with a slicker, more refined delivery. Press and squirt, this is deceptively quick, because the car does a great job in masking the noises and vibrations that working an SUV hard often elicit.

We only wish there was a manual option. With steel wheels, cloth seats and without the Wilderness' add-on gargoyles.

Now, it also seems that Subaru listened and learned from previous criticisms like ours, because the Outback’s newly-redesigned steering is a delight, with a natural, fluent sweetness and ease that’s combined with a pleasing connection with the driver.

The result is balanced, controlled and enjoyable handling, backed up by reassuringly stable road holding. We drove through a sudden, heavy thunderstorm near Bathurst on the first, hot summer afternoon’s test session, and found the Outback to feel impervious through such slippery conditions.

And this all largely applies to the Wilderness as well, though its 20mm-higher ground clearance (to 240mm) makes it feel a little less composed than the glued-down regular model. Both feature a stiffened body and multi-link rear suspension, by the way.

More progress has been made in the Subaru’s ride quality. Gone is the hard suspension feel, for a far-less firm set-up, providing a comfortable and queasy-free ride. Even in the loftier Wilderness. This is the model’s greatest advance over its predecessor and we’re extremely happy with the outcome.

Finally, other than the at-times over-eager driver-attention monitor, the ADAS tech provides subtle, nuanced back-up, with quiet lane-keep intervention, a measured adaptive cruise-control functionality and no jarring buzzes and warnings.

We also enjoyed a session taking both grades off road, to show off their 4WD prowess. The clearances are ample, the hill-descent tech effective and the ability to scramble over wet rocks impressive. The Wilderness especially may even live up to its name!

This is a difficult SUV to fault. The Outback’s breadth of capability on and off the beaten track give it an unusually wide bandwidth for what is a monocoque bodied family convenience. That there is so much sophistication and fun to be had as well make this so much better to drive and live with than the disappointing old version.

We can’t wait to get to know the latest Subaru better on more familiar roads.

There is no ANCAP crash-test rating at the time of publishing, but anything less than the full five stars will come as a scandalous shock from Subaru.

The Outback’s aforementioned ADAS tech runs to AEB front and rear, rear cross-traffic alert, blind-spot monitoring, emergency lane-keep assist, lane-departure warning/prevention, a pre-collision braking system, adaptive cruise control with full stop/go functionality across all grades. Also present are traffic-sign recognition and new acceleration override tech to help prevent collision. Nine airbags are fitted, while a front-centre airbag is new to the series.

No AEB performance parameter information has been released as yet for Australian models.

Finally, there are two outboard rear-seat ISOFIX child restraint points and two top tethers available.

BMW covers the X5 with a five year/unlimited km warranty and offers several service plans to suit different budgets and requirements.

For example, the 'Service Inclusive Basic' package covers all scheduled services over five years/80,000km for a total of $3450, or an average of $690 per year.

Subaru offers a five-year/unlimited kilometre warranty, and that also comes with 12 months of roadside assistance.

Now, that's pretty average nowadays, so nothing special, particularly when other SUV companies like Mitsubishi, Nissan and MG offer conditional 10-year warranties.

Service intervals are at 12 months or 15,000km for both engines. There is a capped-price servicing offer covering this timeframe. They are currently listed at approximately $350, $530, $405, $705 and $370 for an average of $472 per workshop visit.

There are 128 dealers or authorised Subaru service centres across Australia as of January 1, 2026.