If you’re in Australia and looking to drive home the 2027 BMW X5 40 xDrive, you will be paying around US$31,800 more than someone buying the same SUV in America. Here, we are talking about the exact same 40 xDrive gas-powered variant, which uses the same 3-liter inline-six engine making 394 hp and 428 lb-ft of torque. Well, there’s more to the story than BMW simply charging Australians extra. It’s not just about how different the Australian-spec 2027 X5 is from its US-spec counterpart; taxes and other country-specific costs also play a major role.
Understand The Price Difference
BMW
Before we get into the specifics, let’s take a look at how much the 2027 BMW X5 costs in Australia and America. In Australia, BMW is offering both gasoline and diesel 40 xDrive variants, priced at AU$145,900 (US$103,900) and AU$143,900 (US$102,500), respectively. On the other hand, America only gets the gasoline-powered variant, which has a starting MSRP of US$72,100. Comparing the petrol 40 xDrive variants, the Australian X5 is around US$31,800 more expensive.
Australian-Spec 2027 BMW X5 Is Better Packaged
BMW Australia
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BMW Australia is offering the 2027 X5 in two variants – M Sport and M Sport Package Pro – meaning the M Sport is already serving as a standard trim. That means Australian buyers get plenty of M Sport equipment as standard for AU$145,900, including adaptive M suspension, M Sport roof rails, M Sport brakes with blue-painted calipers, and 21-inch polygon-style alloy wheels. On the inside, it gets M-themed black and Atlas Grey interiors, M sport steering wheel, and M-specific welcome carpet lights.
However, opting for the M Sport Pro package adds bigger 22-inch alloy wheels, red-painted brake calipers and M-style seatbelts, all at a premium of AU$3,775. Equipment on board the Australian X5 includes ventilated and massaging front seats, an 18-speaker Bowers and Wilkins system, and a heated steering wheel.
M Sport Package Is Optional With The American X5
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None of these features or design packages come standard with the US-spec 2027 BMW X5. American buyers can add the M Sport package for an extra US$3,250, while the M Sport Pro Package costs another US$4,550. Want features such as ventilated and massaging front seats or a heated steering wheel? That will require an additional US$2,800 for the Climate Package. And if you want the Bowers & Wilkins sound system, you’ll need to spend another US$1,450 on the Technology Package.
Taxation Difference
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In Australia, new-car purchases are subject to a 10 percent Goods and Services Tax (GST), while more expensive vehicles exceeding the threshold limit also attract 33 percent of Luxury Car Tax (LCT) on a portion of the vehicle’s value: AU $91,661 for fuel-efficient vehicles and AU$80,809 for all other luxury vehicles. This is done to discourage car buyers from buying less fuel-efficient cars in Australia. Other taxes include registration charges and stamp duties.
Meanwhile, America has no federal equivalent to Australia’s LCT. Instead, car buyers generally pay state and local sales taxes, with rates varying depending on where the vehicle is purchased and registered.