I looked pretty hard at the Touareg before purchasing my 2011 X5 35i Premium. It's a really nice truck. I was pretty much only looking at the diesel in the Touareg. Incidentally, and I realize this may not be a popular opinion on a BMW site, I think VW/Audi group produces a better diesel engine. I was surprised that the noise level from the X5d was higher than the Touareg, which is the exact opposite of what I've experienced with gas engines.

So basically I compared the Touareg TDI Exec to first an X5 35d and then 35i. Comparing diesel to diesel the engine seemed more refined in the VW. Comparing Nav systems the VW system was clearly head and shoulders above the BMW. Comparing driving dynamics, materials quality, design and most other factors the BMW was somewhere between a little better on some items and an absolute landslide on others.

One of the other factors that loomed large for me was dealer experience. I went and drove a Touareg in the northern suburbs of Chicago and on my way back into the city stopped and drove an X5. The VW dealer mentioned they had coffee, it was a bunn machine with what appeared to be day old coffee in it with a canister of non-dairy creamer and a canister of sugar. The BMW dealer has a cafe with a barrista, pastries, sandwiches, etc. The comparison was hard to make because there basically wasn't one. Coffee is a silly example but it was completely emblematic of the contrast between the two. If I had to wait for service at the VW dealer I would have felt like i was in the waiting room of a Jiffy Lube. If I went to the BMW dealer with the cafe, tables, couches, business center, etc I would have felt like I was nearly at home (though at home I don't have a barrista.)

Thus far I've owned four VWs (two jettas, a passat and a Touareg) and seven BMWS (an e39 540, M5 and 525, an e46 325, e90 335xi, e60 535xi and the e70 X5.) I think that both companies build very nice cars. I think for the money VW makes one of the nicest interiors in the business. I also know that every time I've gone from a VW to a BMW it just sort of becomes apparent why BMW is making cars that stretch past six figures and VW is mostly making cars under $50k. One thing about the Touareg that was going to be a little hard for me to swallow was the fact that it was VW's most expensive vehicle by a fairly wide margin. I've always wondered a little about why VW pushes the Touareg up so high in pricing. Don't they have Audi for that?

I don't think you'd go wrong with a Touareg but I also have a feeling that a quick back to back drive of the two cars might cure you of thinking the Touareg is real competition for an X5, it did for me.

Ben