BMW's compact SUV, the X3, has sparked a parade of competitors from Acura to Volvo, all seemingly aimed at convincing shoppers too rich for a Honda CR-V that, yes, there is a $40,000 alternative.

The aging X3 stays fresh for 2007 thanks to a zippier engine, a new automatic transmission and modest styling changes. Some shoppers may be put off by the new transmission, which muffs its way through slower speeds, but between the masterful handling and high-quality cabin there's enough to like to justify the price.

• New & Improved, Sort Of
• Built for Curves
• Compact Design
• Safety
• Features & Long-Term Ownership
• X3 in the Market