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I have both (X1 is wife's daily driver) and the two cars are miles apart. They really shouldn't be compared but it's hard not to when you have both. The M3 is close to perfection so everything else is lower on the totem pole. Compared to the competition, there isn't much else out there with better power, transmission, and moderate luxuries around $40k. However, we leased and I'm sad to say I will not miss it at lease end in 2 more years. I only have a few gripes but they're deal breakers for me.
1) E-throttle lag. This is atrocious and I don't know how I missed it on test drives. I will never miss this again when buying a car and I would not buy a BMW again if this is still present.
2) Ride height. Yes it's like a slightly lifted wagon, but I still find that I have to watch the chin on high curb stops and on big dips you can bottom it out. With an SUV type vehicle, you shouldn't have to worry about these things.
3) Interior plastics. Not a major issue but some of them are past generation Subaru grade.
That's it. I also have found that we just want a slightly larger vehicle and I want paddles on all future auto trannys, but those aren't reasons I would give this car up. Positives are excellent acceleration (once the throttle decides to work), fast 8sp transmission, I like the looks, price is right, gas mileage is good on highway only, xDrive works well, and my wife likes it.
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