Kelley Blue Book: The redesigned BMW X1: For under $40K, the roomy little SUV is your luxury-car starter

For an authentic German luxury SUV that won’t break the bank, the BMW X1 is an appealing choice. This subcompact SUV offers modern tech features and a lively engine while keeping the starting price under the $40,000 mark. One of the most significant updates for the 2023 model is standard all-wheel drive, likely in a bid to compete with the Audi Q3. The X1 is also pretty roomy for a small luxury SUV this size, giving it a nice measure of practicality. If you’re new to the luxury car world, the X1 is a good place to start.

2023 BMW X1 pricing

The pricing of the 2023 BMW X1 starts at $38,600. A $995 destination fee applies to all X1 models.

The pricing of the X1 is similar to the Audi Q3 and Mercedes-Benz GLA-Class. A couple of more affordable options in this class include the Lexus UX and Volvo
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XC40.

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Driving the 2023 BMW X1

We haven’t driven the all-new 2023 BMW X1 as of this writing. We’ll update this part of the review as soon as we do. We expect it to be an improvement over the outgoing model, which was a fun SUV to drive with quick acceleration and agile handling.

Interior comfort

The redesigned interior in the BMW X1 is upscale and high-tech. The subpar seat comfort was a weak point of the outgoing X1, and BMW says the seats in the new model offer “improved comfort over long distances.” There’s also more interior space, especially more shoulder room.

The standard iDrive infotainment system, Live Cockpit Plus digital gauge cluster, and the “floating” armrest with an integral control panel all contribute to the high-tech vibe inside the X1. A clean design and upscale materials are further reminders that you’re in a premium luxury SUV.

The X1 is one of the roomiest SUVs in its class, with adult-friendly back seats and a pretty generous cargo hold.

Exterior styling

The all-new BMW X1 looks bolder and more modern than its predecessor, but we wouldn’t call it radically different. That’s not a bad thing — its boxy shape is a big reason it’s so roomy. The new X1 continues with traditional design cues like the BMW kidney grille while looking thoroughly modern.

If you’re going for a sportier look, consider the M Sport package. On top of an Adaptive M suspension, it adds 18-inch bi-color alloy wheels, Shadowline exterior trim, and an aerodynamic body kit.

The X1 has gotten a little bigger for 2023 and is on the bigger side of the subcompact SUV segment. Its dimensions are similar to the Audi Q3 and Lexus UX, while the Mercedes-Benz GLA-Class and Volvo XC40 are a bit smaller.

Favorite features

iDrive 8 infotainment systemThe standard iDrive 8 infotainment system has a curved display loaded with Android Auto, Apple
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CarPlay, and navigation with available Augmented View.

Standard AWDThe xDrive all-wheel drive system now comes standard on every X1. This improves grip on dry pavement and gives the X1 more confident traction on snowy roads.

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Standard features

The BMW X1 is well-equipped at the base level. There’s technically only one trim of the X1 — the xDrive28i. Every 2023 X1 in the U.S. has the same powertrain. It’s a 2.0-liter turbocharged inline-4 mated to a 7-speed dual-clutch automatic transmission directing power to all four wheels.

Standard features include 18-inch alloy wheels, LED headlights (with cornering lights) and taillights, low-profile roof rails, ambient interior lighting, dual-zone automatic climate control, a power liftgate, Black High-Gloss interior trim, and Satin Aluminum Line exterior trim.

The standard infotainment system is the iDrive 8 system with a curved 10.7-inch display that flows into the Live Cockpit Plus 10.25-inch digital gauge cluster. Other standard tech features include Android Auto, Apple CarPlay, navigation, and SiriusXM
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Standard safety and driver assistance tech features in the X1 include active blind-spot detection, lane-departure warning, frontal collision warning with city collision mitigation, parking sensors, and automatic high beams.

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Factory options

Although there’s only one trim of the X1, there’s no shortage of individual options and option packages to make it your own.

An available Premium Package makes the X1 more luxurious by adding features like a panoramic moonroof, a head-up display, Harman Kardon premium audio, a wireless charging pad, a 360-degree camera, 3D view with augmented reality overlays for navigation, the Parking Assistant Plus system, and more.

Drivers looking for more safety tech will appreciate the Driving Assistance Professional Package. This adds extended traffic jam assistant, full-speed adaptive cruise control, lane-keeping assist, evasion aid, and front cross-traffic alert.

Consider the M Sport package if you want a premium SUV on the sporty side. It’s primarily an exterior and interior appearance package but also adds Adaptive M suspension for a more engaging drive.

Various individual options available include sport seats, eucalyptus open-pore wood trim, remote start, a universal garage door opener, and more.

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Engine and transmission

The sole engine option under the hood of the BMW X1 is a 2.0-liter turbocharged inline-4. On paper, this engine boosts power and torque compared to the engine in the outgoing X1. As of this writing, we don’t have official fuel economy ratings for the new X1.

Every BMW X1 has a 7-speed dual-clutch automatic transmission and all-wheel drive.

2.0-liter turbocharged inline-4241 horsepower @ 4,500-6,500 rpm295 lb-ft of torque @ 1,500-4,000 rpmEPA city/highway fuel economy: N/A

This story originally ran on KBB.com.