I bought a Certified Pre-Owned (CPO) 2002 X5 last year (2004) and after a full year of ownership I can say that this is an awesome car! The 3.0 engine has more than enough power and is silky smooth. The interior is typical BMW - clean, crisp, and functional. I opted for the standard handling package (not the sport package) as the ride with the SP was way too harsh for me and my family. Some people complain about the gas mileage, but I have been averaging around 19 MPG (50/50 city/hwy) which isn't too bad. The CPO warranty saved me around $1000 in repairs (new electric window lifts). Overall, I have been very, very happy with car.
Fast, quick handling, smooth, very quiet. No rattles or squeaks. High quality. This is my first car with a sun roof and I love it! Everyone really likes the style of this car. Try not to screw it up with the new design for 2007.
Better sound system. Do NOT add third row seating to the next generation car, keep with the performance design - its a BMW not a Ford.