Best of BMW line-up

Australians have been brought up on the notion of automotive rivalry being all about Ford against Holden. But what about BMW and Benz, who have raged a right royal battle for supremacy in Australia in recent years that's now conclusively in favour of the world's oldest car maker? That's Mercedes-Benz, in case you didn't know.

BMW only won two class contests last year, using its all-new X5 to trump its rival's ML and chauffeuring its 7 Series flagship to a four unit win over the Mercedes S-Class in its run-out year. BMW Australia happily reports an 11.5 per cent lift in sales through 2013, against an overall industry improvement of just 2.2 per cent, but Mercedes-Benz improved its sales by 25 per cent and even Audi was up by 10.1 per cent.

Jaguar did best of the luxury brands, banking a 40.6 per cent rocket boost thanks to everything from the latest diesel-powered XJ flagship to early sales for its great new F-Type sports car. But back to BMW, which seems to be so busy finding and friending new customers - from monster Mini models at one end to the X6 crossover at the other - that it's forgotten about excellence in its mainstream models, especially the 3 Series.

BMW says it is more than happy with its results last year and reports an 18 per cent month-on-month improvement in January. “That's our best result ever and we're extremely pleased. It is a very sustainable increase. Sustainability is a key for us," says company spokeswoman Lenore Fletcher. 'We're in the middle of a very busy product update cycle and that will continue again this year."

Even Benz is downplaying the rivalry as it looks to drive its sales growth with smaller and more-affordable cars. “We have traditional competitors, Audi and BMW, but we see it a little differently. There are 50 marques selling passenger and SUV vehicles in Australia and almost all of them are competitors in some way," says Benz spokesman David McCarthy.

“The customer is no longer looking specifically at a brand. They are actually looking at a vehicle solution. In compact cars there are our traditional competitors, but there are other competitors such as the Volkswagen Golf and Mazda3."


BMW 316i - see other verdicts

Price: from $52,300
Engine: 1.6-litre 4-cylinder turbo, 100kW/220Nm
Transmission: 8-speed auto; RWD
Thirst: 5.9L/100km



The bread-and-bacon bottom end of the 3 Series family is best. The turbo engine is sweetly responsive and the old-school suspension with relatively small tyres copes best with our roads. The further you go up the family, the further you get from the enjoyment that has made the 3 Series so successful for so long.


BMW X5 - see other verdicts 

Price: from $82,900
Engine: 2.0-litre 4-cyl turbo diesel, 160kW/450Nm
Transmission: 8-speed auto; AWD
Thirst: 5.8 litres/100km



It's somehow ironic that the best bet from BMW, an old-school German luxury car brand, is an SUV made in the United States. The X5 has been a huge hit around the world and the latest model continues the run with space and quality. The pricing and performance starts with the basic diesel for well under $100,000 - without options - but our favourite is still the 3.0-litre turbo petrol model from $106,900 (despite its confusing xDrive35i badging).


BMW M5 - see other verdicts 

Price: $229,900
Engine: 4.4-litre V8 turbo, 423kW/680Nm
Transmission: 7-speed twin-clutch auto; RWD
Thirst: 9.9L/100km



Until the arrival of the latest M3 and new-school M4 coupe, the bigger and bolder M5 is our high-performance BMW choice. It doesn't have the theatrical impact of the previous V10 model, but the M5 is typically new-age with a turbocharged V8 that delivers heavyweight punch with reasonable economy and refinement. It's not cheap, it's going take a belt from the Benz E63, but it's a good car

SECOND-HAND

The sweetest 3 Series for used-car buying is the E46 model, which carried the flag from 1998-2005. It was developed before design renegade Chris Bangle got the wheel at BMW, which means it's a good looker that has aged well and has enough space for young families and people who like to drive.

Because we like to drive, the Carsguide choice from a wide range of 3 Series models (up to the M3) is the zingy six-cylinder 330i which arrived from the factory with 170kW. And it's even nicer as a coupe, if you have the cash.

Any BMW can be costly to keep running and the depreciation on fully loaded models is tough - but both things play to a canny second-hand shopper who is prepared to check the history and bargain hard. A 330i is likely to have plenty of original options but they add almost nothing to the used value and thatmeans buying smart can put a genuinely nice example in the garage.