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Originally Posted by AzNMpower32
I do agree that the E39 and the E53 have a nicer interior. However, you pay more for those vehicles, as it is a bit more "luxury". Thus, if I was paying $50-70k for a E53 X5 or $40-60k for a E39, I would expect a nicer interior. However, the X3 started at $30k back in 2004, and today it's around $40-50k. It's on the level of a 3-series and targeted at a younger audience (at least it was that way back in 2004). I'll admit I don't expect fancy fancy wood or plastics and I just expect "well-built", but my standards are already higher than most kids this age (they just want big engines and wheels), and I find the X3 quite acceptable. I sound like a broken record when I say this, but my friend who has the A-spec '04 TL, remarked about the high quality of my interior a few years ago. I was like "are you  ?". Now after a few years, my X3 has twice the mileage of his TL. And yet mine has aged FAR better than his TL's interior.
Anyway, BMW's heard your complaints, The 2007 has an improved interior with more leather and finer-grain textures.
The interior on the E60 and E90 isn't anything remarkable. Fancy fancy wood, but it doesn't feel like the E39 and E46 respectively. The word that comes to mind is "superficial"
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I understand what you are saying. I have an '04 TL in my extended family, and I have driven it once or twice. I can say that the controls are a bit nicer, but the leather is very rubbery.
I like the new wood on the dash and the finer textures, but the way the audio/climate is set up kind of bugs me. And c'mon, you can get dual zone climate on a Jetta.