I know early models were not up to the mark for quality, according to some users, but the revisions BMW introduced sorted most of that. I've looked closely at the two in the family and although a different finish in parts compared to other BMW models, I don't see/find lack of quality in fit and finish.
I know the "buy an X5" is often quoted, but it is like saying "get a 5-series, it is better than a 3-series". Absolutely true, but not everyone wants a bigger vehicle.
From used X3 prices, it seems the demand is still holding, perhaps even greater than ever, for used X3 models. Someone wants them.
I'd certainly test drive and work from there.
HighlandPete
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