The 2009 BMW X3 is BMW's smallest SUV - they're actually called sports activity vehicles by BMW. It competes with Acura RDX, Mazda CX-7, Volvo XC60, Infiniti EX, Mercedes-Benz GLK, Land Rover LR2 and the Volkswagen Tiguan. There really is no domestic competition for the small luxury SUVs.

Refreshed in 2007 and given a new engine the same year, the current year model is little changed with two exceptions. Light alloy 17-inch wheels are now standard and some new interior and exterior colors have been added. The X3 has BMW's xDrive four-wheel drive system. It has a classic BMW look that both catches the eye immediately and grows on you over time.

The X3 sports only a single engine, the gasoline powered 3.0 liter, 260 horsepower I6, which is a bit uncommon as most companies today go with the V6. You have a choice of a six-speed manual transmission or a six-speed automatic transmission, either with overdrive. Manual is standard.

The X3 gets 17 miles per gallon in the city and 24 miles per gallon on the highway with the automatic transmission. Subtract a mile per gallon from each for the manual transmission. That's a little behind the class average for small SUVs, but decidedly better than most luxury SUVs.

Not a real work truck, the X3 still manages a respectable maximum towing weight of 3500 pounds and a maximum payload of over 1000. It has 30 cubic feet of storage space, which is slightly larger than class average for small SUVs.

The X3 has only one trim, called the xDrive30i, but you can rest assured it has all the "trimmings" you want either standard or available as options. It also has an excellent power to weight ratio, about three pounds per horsepower lighter than class average. However, front headroom and front legroom are both a little crowded even for a small SUV.

There are no NHTSA crash test ratings on the X3 for either of the past two years. The X3 does have a number of the best safety features, including child safety locks, anti-theft system, antilock brakes with electronic braking assist, traction control and vehicle stability control, limited slip differential, electronic parking aid and airbags everywhere.

Whether the X3 is a good buy or not depends to some degree on how you look at it. If you consider it a small SUV then the $39,700 base price is about $15,000 above class average. If you consider it a luxury SUV, it's about $15,000 below class average.

The thing is, the 2009 BMW X3 is both a small SUV and a luxury SUV, usually considered two distinct classes. When you combine two things in that manner, you often get the worst of both. But BMW seems to have beaten the odds here. The X3 appears to offer the best of both worlds.