BMW 118i vs Lexus LM 500H

What's the difference?

The 118i has restored my faith in entry-level models from premium brands. Could it do with more standard gear? Absolutely, especially at $50K, and given what you could get in a higher-grade variant from a mainstream manufacturer, like the Mazda3 or VW Golf.

But the 118i is a cut above the mainstream hatchbacks in terms of performance, driver engagement and how the car makes you feel. 

If value is the priority, look elsewhere. But if your budget stretches this far and you can live without some of the luxo features, there’s little to complain about with the 118i hatch.

The Lexus LM 500h is luxurious, comfortable, practical, easy to drive and expensive. While it may appear to be the ultimate family car, with only four seats it's limited in terms of how many kids and their friends you can carry. On top of that, the privacy screen introduces accessibility issues to the kids you wouldn't encounter on other vehicles. If you are thinking of a Lexus people mover as your next family car I'd suggest looking at the LM 350h which has seven seats and no privacy screen. If you’re looking at a business class executive van the LM 500h would be perfect. 

Since the first-generation model arrived on the scene in the early 2000s, the 1 Series has had a slightly awkward design, partly due to the rear-wheel drive underpinnings. But this latest third-gen model, that debuted in 2019, is by far the most sleek and stylish yet. 

This is helped by the slimline tail-lights, rising shoulder line and well-executed front-end design with the signature BMW quad headlights and wide 'kidney' grille. 

In Australia the 118i comes as standard with 'M suspension' that lowers the ride height by 10mm, which gives it even more of a hunkered down look. The 'Black Sapphire' paintwork of the test car also upped the sexiness of the little hatch.

The 1 Series, and its competitors from Benz and Audi, are all visually appealing in different ways, ensuring they will each appeal to different buyers. 

The interior design is unmistakably BMW, which hasn’t evolved significantly for about 15 years. Although new-generation models like the iX and the soon-to-launch X1 SUV prove that BMW can evolve.

BMW’s overall dash design and layout isn’t a million miles away from the edgy angular look of the new Audi A3 - and that’s no criticism.

The mixed synthetic leather and cloth trim on the seats has a cool blue cloth motif to break up the grey and add a small splash of colour to the cabin. Matching blue stitching on the dash and doors is a nice touch.

The LM 500h doesn't look real. More like a concept vehicle with its vertical face wearing that enormous grille. Feels like if you watched it for long enough you’d catch it transforming into some kind of robot. Yet, at the same time its styling is elegant and prestigious.

I have a confession to make. I used this Lexus as my office. Its interior is that comfortable and spacious. I'm also a parent and there were times where it was the quietest place to get some work done.

It also let me observe people's reactions as they walked past with their dogs not knowing what was going on inside behind those tinted windows. The people that noticed were clearly car enthusiasts as they knew what they were looking at and couldn't pass without gaping it awe.

The LM 500h’s interior is superbly plush with thick carpets, beautiful copper metallic trim and nappa leather seats.

As I’ve said, the cockpit up front is less luxurious than the extravagant first class section in the back behind that dividing wall.

And yes, I’ve seen large screens before but nothing that stretches the width of the vehicle.

Up front the 118i’s sports seats offer unbelievable levels of lateral support, and despite the bolsters being adjustable, it might be a little too snug for some. It’s expected for a pricey hot hatch but not the lower grade 1 Series. And given how much side support there is, it could do with a touch more under-thigh padding. The driver’s seat is power adjustable while the front passenger has to adjust their seat manually.

The typically chunky BMW M leather steering wheel looks and feels expensive and offers good grip. The minimal steering wheel controls are well labelled with text or clear icons. I appreciated the analogue air conditioning controls instead of them being buried in a multimedia screen menu.

The multimedia system menu is unfussy and while it’s not as tech heavy as some other systems, I don’t see that as a negative. It just means there are fewer functions you’re forced to remember. You can control the system via the 'iDrive' controller in the centre console or it can be used as a touchscreen. I like the way users are given both options. The 10.25-inch screen is nice and wide but quite narrow. Overall, BMW’s operating system is easy to use and functions well.

In terms of devices, the 118i has a wireless charging pad, as well as a USB-A and USB-C port, and a 12-volt charger up front.

It has a smallish central bin, but it’s fine for a number of smaller items. Tall bottles fit easily in the door storage bin and there’s a secondary slot for other items. The 118i comes with a decent sized glovebox, and two front cupholders with a nook for phones just behind it.

The 118i is more spacious than anticipated, especially in the second row. The back of the front seats are scalloped, allowing for a little extra knee room, but there is a good amount of legroom generally, and plenty of headroom, despite the lower roofline. 

The rear seats are on the flat side but still comfortable, and there are ISOFIX points on the two outboard seats.

Rear seat occupants have access to map pockets, two more USB-C ports, and storage for big bottles in the doors (just), but there are no rear air vents. The seats fold 60/40 and there’s no central armrest.

Open the hatch and you’ll find a reasonably sized boot that can swallow 380 litres, expanding to 1200L with the rear seats stowed. There is plenty of under-floor storage because there’s no spare tyre on account of the run-flats favoured by BMW. There are, however, a couple of tie-down anchors and shopping bag hooks.

You might be able to take Lexus out of Toyota but it's very hard to take Toyota out of Lexus and this particularly applies to the practicality of the LM 500h.

Every day I discovered new compartments, tray tables and storage areas. There are so many cabinets, lockers and hidey holes that we almost left my belongings (an entire family of plushie toy capybaras) behind because there are so many places to check.

Of course, I'm talking about the rear compartment here because up front there's not much storage. In fact, it proved to be quite a problem in that I had nowhere to put my bag with somebody sitting next to me and no area behind the front seats to stow it, either.

Talking of seats, the LM 500h only has four of them, with two up front and two in the rear. Up front, the seats are supportive and large, but the rear seats - those are, well... have a look at the images.

We’re talking two large captain's chairs that look as though they’ve been removed from the first class section of a plane.

And while this might be suitable for businesses shuttling a couple of executives to and from meetings, for a family, even with two children, the extra couple of seats a third row offers would come in handy.

The LM 350h has seven seats over three rows and no privacy screen. A far better choice for families.

For device charging there are USB ports up front and in the rear. There are wireless phone chargers for those in the back seats but not up front.

The LM 500h has a cargo capacity of 752 litres with all seats in place.

The Lexus LM 500h sits at the top of its range and is without a doubt one of the most expensive people movers on Earth with its list price of $220,888.

As you would imagine the standard features list is as extensive as it is extravagant.

For starters, while the regular LM 350h has two rows of seating in the rear (seven seats all up, including the front two), the 500h has the third row removed and just two super luxurious and enormous fully reclining seats fill the entire space. It’s like a theatre back there.

That theatre theme keeps going with a media screen in the back so large it stretches the width of the vehicle. Seriously, it's a 48-inch screen to watch movies or connect to your device.

The sound system is probably the best I’ve experienced - a spine tinglingly incredible 23-speaker Mark Levinson set-up.

What else can I tell you? Those rear seats are upholstered in beautifully soft semi-aniline leather. They’re heated and ventilated with a massaging function and... ridiculously comfortable.

There’s four-zone climate control, windows which have an electronic shade that turns the glass opaque, there are wireless phone chargers in the doors and carpet throughout so thick you sink down into it as you step inside.

Our LM 500h was upholstered in the 'Solis White' leather which also brings contrasting and mesmerising copper metallic trim.

Oh, and there’s a wall with an electric glass screen that can be raised or lowered to separate the rear passengers from the driver.

I should have mentioned this earlier. The kids loved it, but these parents spent a lot of time telling the 10- and three-year old not to put the screen up again.

The rear occupants, aka the kids, can also lock the screen in place. Which they did, and so sound proof is the dividing wall that we can only just hear their uproarious laughter.

Up front, the cockpit is comfortable but it’s clear all the space and luxury is for those being driven around.

Still, the front seats are leather with heating and ventilation, there’s a 14-inch media screen and 12.4-inch digital instrument cluster, plus a head-up display. Sat nav, Apple CarPlay and Android Auto are also standard.

The 118i is powered by a three-cylinder turbocharged petrol engine, offering up 103kW of power and 220Nm of torque. It’s the same unit found in the Mini Cooper, albeit uprated by 3kW for the BMW.

It is front-wheel drive and the engine is paired with a seven-speed dual-clutch automatic transmission.

BMW says the 118i can cover the 0-100km/h sprint in 8.5 seconds.

If you’re after a quicker 1 Series, then the 180kW i28ti or 225kW Mi35i xDrive could be a better pick.

The LM 500h is a petrol-electric hybrid with a 2.4-litre four-cylinder turbo-petrol engine which makes 202kW/460Nm and works in concert with two electric motors.

The front motor makes 64kW/292Nm and the rear makes 76kW/169Nm. The combined maximum power output of the two motors and the petrol engine is 273kW.

The LM 500h is all wheel-drive and has a six-speed automatic transmission.

According to BMW, the 118i consumes 5.9 litres of fuel per 100 kilometres. During my week of mixed driving with the hatch, I recorded a much higher average figure of 10.8L/100km. This was exacerbated by the fact I did my main test drive shortly before returning the car. It was much more efficient around town.

It has a 50-litre fuel tank and does require premium 95 RON petrol. In terms of CO2, the 118i emits 135g/km.

Lexus says after a combination of urban and open roads the LM 500h should use 6.6L/100km. In our own testing we found consumption was higher at 9.4L/100km.

Worth noting my driving environment was mainly a hilly suburban one filled with school drop offs. Achieved some personal bests this week, with one long run to Sydney’s outskirts, only to return in nightmarish peak hour traffic.

Premium (95 RON) fuel is required and the tank size is 60 litres. In theory the driving range is a smidge more than 900km, which drops to around 640km using our real-world average.

To be honest I wasn’t particularly hopeful of an engaging driving experience with the 118i given I have been underwhelmed by the base Mercedes-Benz A-Class. But after a week with the 1 Series, I reckon it might well be the pick of the premium players in this segment.

The 118i is also a much more enjoyable car to drive than the entry-level version of the outgoing X1 SUV with which it shares a powertrain. If you don’t need the extra cargo space or the ride height of the X1, then please test drive the 118i just to see what you’d be missing if you opted for the X1.

BMW has always excelled when it comes to building punchy powertrains for driver’s cars, and that continues to be true, even for its smallest internal combustion unit.

The 103kW/220Nm turbocharged three-pot is smooth yet responsive, offering linear power and torque delivery and acceleration that will bring a smile to your face.

Obviously it’s not as quick as its sportier 1 Series siblings, but make no mistake, you can still have fun in a 118i.

There’s a little bit of lag when taking off and some hesitation from the seven-speed dual-clutch transmission during shifts, but neither are deal-breakers.

That obsession with driver engagement has paid off with the steering which is quick and direct.

The suspension is geared towards dynamism and as a result of that, and the sharp steering, you’ll be seeking out the nearest twisty section of road every time you get behind the wheel. It’s planted in corners with excellent road-holding characteristics.

Unfortunately that dynamic tune, and the low-profile tyres, means the ride is on the firmer side and a little jiggly around town, but it settles at speed. 

In terms of visibility, the 118i has huge B- and C-pillars, small rear side windows and a narrow rear windscreen, so you’ll be relying on the parking sensors and camera. The 11.4m turning circle feels large for a small car, too. 

The cabin is well insulated from some outside noise but coarse chip roads will make their presence felt.

Quite simply, driving the LM 500h is like piloting a limousine on stilts. Superbly comfortable, but with an elevated driving position that offers outstanding forward and side visibility, the LM 500h is an easy vehicle to drive for long periods of time.

A digital rear vision mirror means visibility behind is good and unobstructed by the privacy screen or the seats.

The drawbacks are down to the lack of space up front, with the driver’s chair limited in its ability to recline or slide back due to the bulkhead behind it.

And that's compounded by the lack of cabin storage for bags if the front passenger seat is taken.

As for the rear passengers there aren't many people movers offering this level of comfort, except perhaps the Zeekr 009.

Variable suspension that adjusts continuously keeps the vehicle composed and provides a high level of comfort for those in the rear. At the same time, the LM stays nice and flat through roundabouts while remaining civilised over speed bumps.

And then there's the acceleration, which, while not supercar-like is incredibly brisk for a van. The all-wheel drive system provides outstanding traction in wet and slippery conditions, too. 

Our family used the LM daily for everything from school runs to shopping trips and weekends away and not only was it fun to drive, our lucky rear passengers enjoyed sitting high and being able to see clearly out their windows along with the luxury of a giant movie screen.

The Lexus  LM 500h is yet to be tested by ANCAP so it doesn't have a safety assessment score. There is, however, a high level of safety tech onboard including AEB which can detect pedestrians, cyclists, motorcyclists and other vehicles, emergency steering assist, lane keeping assistance, road sign recognition, rear cross-traffic alert, front and rear parking sensors as well as six airbags.

For child seats there are ISOFIX points and top tether anchor mounts on the two rear seats. We have a forward facing child seat and found it easy to install.

A space-saver spare wheel is located under the boot floor.

BMW continues to offer a three-year/unlimited kilometre warranty for its models, which is disappointingly a couple of years off most rivals these days.

The German giant also does things a little differently when it comes to servicing. Instead of service schedules, it has ‘condition-based servicing’, which is when the vehicle’s computer will inform you when the car needs a service. 

BMW’s Service Inclusive pre-paid plan runs for five years or 80,000km for the 1 Series, and costs $1700 up front when you buy the car. That averages out to about $340 per service, which isn’t bad for a premium marque.

Lexus covers the LM 500h with a five-year, unlimited kilometre warranty. 

The Lexus Encore Platinum program is complimentary for LM owners for three years, providing 24-hour roadside assist, a loan vehicle or pick-up/return service at service time, 'On Demand' vehicle evaluation options, valet and airport parking benefits as well as exclusive offers and event opportunities.

Servicing is recommended annually or every 15,000 kilometres, and impressively, pricing is capped at $695 per service over five years.