Best Luxury SUV Australia: BMW X5 vs Mercedes GLE vs VW Touareg

If you’re buying a luxury SUV you expect nice finishes and quality materials - but what about when it comes to fitting a family in? You need the space to be pleasant but also practical. 

We know that exterior dimensions mightn’t be that important to you - they’re all large SUVs, after all - but here’s a breakdown to help you see how they stack up, if it wasn’t obvious from the images. All of them have big boot areas, which we’ve listed here, and that’s great if you’ve got young kids or teens. 

You can see that the Benz is longest and has the largest wheelbase, and that was the feeling from the back seat, too. 

But check out those boot figures! To give you an idea of how they compare in the real world, we loaded up the CarsGuide luggage in each of these models, and also our trusty pram. 

Watch the video or check the interior pictures and you’ll see that the Benz might have a bigger claimed capacity but its higher load-in lip and narrow space makes the cargo zone a little less impressive than the numbers suggest. The VW’s expansive boot opening and wide load space make for easier loading and plenty of space. The BMW’s boot is narrow and deep, and there’s a smaller load space, that’s for sure - but we loved the split tailgate. 

Now, if you need seven seats you’re out of luck with the Touareg. No such model exists. But you can get the BMW and Mercedes with a third row - the BMW X5 seven seater layout adds $3700 to the price (note - you also need to option air suspension to get it, adding thousands more), while the GLE 7 seat layout is $3900. The GLE’s third-row package includes a second-row setup with electric seat adjustment, which really adds to the luxe factor.

The second-row space in the GLE is very good, but it’s more than just legroom that makes a good space - there’s also a more comfortable, sculpted seat with better support. The electric seat adjustment adds a bit pinch of luxe to the back row, too, but the folding function is frustrating if you’re going to use the third row a lot. Let’s ignore that, because we’re aiming for a like-for-like five-seat test.

The GLE’s third-row package includes a second-row setup with electric seat adjustment

The BMW’s back seat offers up a flatter seat, which is uncomfortable, but it is flat, which means it feels wider if you need to fit three across. One thing that’s lovely about the back seat is that there’s a really airy feeling to it, with a lot more glass and more headroom, too. 

The back seat of the BMW is an uncomfortable flatter design

The X5 and Touareg are about identical for legroom, while the VW has a bit less foot room due to its larger transmission tunnel. It also has a little less headroom due to the sides of the roof lining impinging more than its rivals.

When it comes to storage in the cabin, the VW’s centre console is the smallest here, but all three have generous cup holders and loose item storage between the front seats. Each has door pockets with bottle holsters but the BMW’s door pockets are easily the most capacious, and the BMW is the only one with ‘real’ map pockets instead of mesh ones. 

If you need seven seats you’re out of luck with the Touareg

What about the design of the cabin?

Our testers all felt the Mercedes - with its dual screens, millions of vents, lush finishes and ‘oh my gosh’ factor - was the most outrightly lush of these three. It’s such a huge step up compared to the previous model, it’s not even funny. 

Inside the X5 was a lovely place to be, too, with prominent dual digital displays and surprisingly nice brown leather. It’s great to see a cabin with a different colour seat and door trim to black. 

The VW has some hard plastics here and there, but the general look and feel of the cabin is a high quality experience, if not a full-on luxury moment. You’re not going to confuse it with a Golf or Polo, that’s for sure.

Below you’ll see a breakdown of the media system setups for each of these cars, and there’s a bit splitting them - but one thing’s for sure, there’s some wow factor here. 

The Mercedes brings the brand’s MBUX driver interface to the table, with twin 12.3-inch digital screens - one for the driver to see all the information they need, and a central one for controlling all the interior elements. There are multiple ways to control things here, and it does take a little bit of getting used to. You get Apple CarPlay and Android Auto if it all gets too hard.

It is equipped with the brand’s “Hey Mercedes” functionality - but on test, the system was laggy and frustrating, lacking the logic to understand even basic prompts. 

You mightn’t know it, but there’s a “Hey BMW” function, too - and it works significantly better than the Merc system, maybe because it’s a lot simpler. You use a voice control, and it’ll direct the media screen to the right place, where you’ll take over manual control. It’s neat. 

But this is a high tech space, with a fully digital dashboard display, a great media system with wireless Apple CarPlay - sadly, no Android Auto though - and really nice quality materials throughout. The CarPlay is a subscription service through BMW - that’s a joke! - but at least the display goes full-screen, making it easier to hit the icons when you’re driving. 

The VW’s huge optional screen is as big as my first PC’s monitor, and it is an eye-catching addition, but it isn’t perfect. The Apple CarPlay controls come up in a small box in the middle, rather than being properly integrated, and the reversing camera is a poor resolution for a car at this price point. There’s no surround view monitor, either. But geez, it looks great.

They’re all turbo-diesel powered, automatic, and each has all-wheel drive. But there are some marked differences here.

The VW is the only model with a V6 engine, where the BMW runs an in-line six cylinder. The Merc we’ve got is the entry level four-cylinder, but it still stacks up pretty well on power and torque. The six-cylinder diesel GLE 400d wasn’t available at the time of testing.

Here are the important specs:

Can the four-cylinder Mercedes compete with the big sixes when it comes to driving? Watch the video or read the driving section below. Or do both?

We didn’t do a towing review with our test vehicles, as none had a towing pack fitted. 

But if you want to know the capabilities - perhaps you’ve got a bay cruiser or a big ‘van that you need to haul - here are the numbers you need to know. It’s more complicated than you might think, because a ‘factory-fit’ tow bar package will offer the best outcome, but if you buy one of these vehicles without a factory-fit setup and fit a towbar locally, you will see a lower towing rating as a result. 

Remember, you’ll need electric trailer brakes to tow at maximum capacity if you’re hauling more than two tonnes.

There are positives and negatives when it comes to the drive experiences of all three of these models as tested. Read between the lines there, and you might see that there are bits we wouldn’t choose to option (22-inch wheels, maybe?) or perhaps would choose to spend our money on in the hope of more driving enjoyment (air suspension).

For a luxury SUV to impress on the driving front, our judges prioritised effortless performance and ride comfort. But obviously we drove these SUVs over a mix of roads - from urban areas with car parks, speed humps and roundabouts, to open roads with higher speed limits, and country roads with plenty of lumps and bumps. And it was very, very illustrative. 

The GLE300d’s engine - a four-cylinder, up against the lovely, gruntier sixes here - just doesn’t offer the level of luxury motoring that you’d expect. For what it’s worth, we collectively thought the 400d version of the GLE with its turbo-diesel straight-six engine would have been a better fit, but it just wasn’t available to us when we ran this test. 

It’s not that the four-pot is a bad engine, because it offers decent pulling power when you need it and reasonable refinement, too - but you can’t escape the fact that it has to work a lot harder than a six, and the nine-speed auto gearbox can be busy as a result.

Also busy is the suspension, which seems to struggle with sharp edges due to its big 21-inch wheels which are wrapped in run flat tyres because this is the seven seater model. But it also lacks adaptive suspension, and that means it twitches, wobbles, and hits bumps rather than soaking them up. It’s a bit of a nervous ride when the road beneath you isn’t perfect.

The steering in the GLE is a bit of a mixed bag

The steering is also a bit of a mixed bag - it’s direct and light in its action, and that makes it feel smaller than the vehicle’s physical dimensions, and therefore easy to drive at lower speeds - but it lacks meaningful feel to the driver’s hands, and as a result you don’t feel as in control of proceedings.

That might all sound bad - but in gentle day to day driving on smoother roads under less stressful conditions, it’s adequate and decent. But is that good enough for a car of this price point? Not really.

The contest was closer between the two six-cylinder models here.

The X5 30d’s engine is creamy smooth in its power delivery, and there’s virtually no lag to contend with from a standstill. It has a real “what lies beneath” character to the engine, which is potent and powerful, and the eight-speed auto is almost imperceptible, offering faithful and decisive shifts. 

It’s good for the driver, with the best steering of these three in broad terms, offering good feel and directness, if a little bit of slowness on centre. 

The BMW offered better comfort and composure to its ride than the GLE, in spite of its huge 22-inch wheels with run-flat tyres, with adaptive dampers fitted to this M Sport kitted out model. There is an element of crunch when you hit a sharp edge, but that’s not really that surprising, though it doesn’t feel as luxurious as some might wish. Rear seat occupants complained of sharpness at the back suspension and the very flat back pew, which combined for an unpleasant experience.

The BMW has an element of crunch when you hit a sharp edge

It was the VW that we felt found a better balance for its ride comfort, and a lot of that comes down to the fact it is fitted with air suspension as standard. The system offers exceptional comfort, and it can even prepare the rear suspension for a bump if the front struts detect it - this was evident in our urban loop, where it was unprecedentedly comfortable over a series of speed humps, where the BMW was firmer initially and stiff at the rear, and the Mercedes was downright unpleasant and lacked control.

Its high-speed ride comfort and control was better, too, with a more level and likeable experience for everyone in the car. Our testers agreed that this was a more car-like experience, in that you felt like you were sitting in the car rather than on top of it, if that makes sense. It was almost like a big Golf wagon - comfortable, composed, and confidence inspiring.

The VW offers exceptional driving comfort

For the driver, the steering is a little heavy and slow, which can make it a bit harder to work in roundabouts and when parking, but the road feel and response is very good.

It was the quickest in terms of acceleration, too - the BMW was just a little slower in our testing, while the Benz’s four-cylinder couldn’t match up to either of the sixes. There is a bit of turbo lag to contend with in the VW, and it is a touch noisier than the BMW, but our testers all felt it was the best all-rounder of these three… even though we’ve given it and the X5 the same score, as they’re that close.

We made the point that one of these models is from a mainstream brand, yet the others are from luxury marques. That does have an impact on ownership, to an extent.

You can see below that the VW gets a handy longer warranty, which could be enough to sway some buyers. Plus is has the option of two pre-purchase service packs, but the brand is a little stingy on roadside assist cover.

The Benz has expensive servicing costs comparatively, though it does have longer maintenance intervals. 

The fact that one of these models is from a mainstream brand and the others from luxury marques doesn't impact ownership to a certain extent

The BMW’s condition based servicing plan means the car will tell the driver when service is needed, and that could be good or bad. 

Just note that the costs you see below aren’t all inclusive. You may still need to cover the cost of wheel balances and rotations, brake pads and discs, wiper blades and more. Consult your dealer when you’re signing the paperwork.

Worried about problems/issues/reliability/resale/all of the above? You can check out our VW Touareg problems page, our Mercedes GLE problems page or our BMW X5 problems page to see any issues that may have arisen according to owners.