DAVID says: Do you want to buy a 4x4? No problem, there are literally dozens on the market.

You do not want anything jungle-crushingly massive and your absolute limit is £30,000. Still not a problem. By my reckoning there are still 21 glitzy, compact, off-roaders ready to burn a hole in your wallet.

Oh, and you absolutely must have a German badge on the bonnet. Ah, now there's a real problem, because there is just one vehicle on the market that matches that sort of shopper's ticklist.

Small wonder then that the X3 - the not so little sister to the larger and costlier X5 - has done a roaring trade for BMW since its launch, and with the arrival of the 2.0-litre diesel model is set to do even better.

The X3 is noticeably more compact externally than the X5, but offers almost as much room inside and, paradoxically, has a larger loadspace.

Its attractions are obvious the minute you slip behind the wheel. Familiar, logical BMW instrumentation, switchgear and cabin layout put you instantly at ease.

Combine that with a high-riding driving position and it looks like being fun. It is.

Car-like is an overused description for off-roaders' performance, but for the X3 it is entirely apposite.

The 150 horsepower, diesel-powered X3 rides and drives like a 3 Series saloon. Firm, precise handling and a total absence of body roll in bends, allows for quiet, controlled progress.

BMW has carried out research into the habits of owners of the larger X5 and found that one in five actually use their cars off-road at least once a month and it expects X3 owners to do the same, although there is no low-ratio transfer on offer for serious mud-pluggers.

The off-road tag does not mean that drivers and passengers will have to rough it inside.

BMW itself admits that the X3 offers the same comfort and on-road ability of the X5, so with the arrival of a 3.0-litre diesel later in the year, to add to the existing 2.5 and 3.0-litre petrol models, it makes buying an X5 look a real extravagance.

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MARIE says: When German carmakers decided to go up in the world, they all decided to do it on a grand scale - apart from BMW.

It made its 4x4 debut with the heavyweight X5, but quickly followed that with the nippier, more compact X3. It was a good move.

A slight step up into the driver's seat brings you into a grey interior and dark grey upholstery which does make the cabin feel a bit overcast.

But BMW says, despite what you might think, it has found its 4x4 vehicles are often taken off-road and it has purposely designed the interior with practical, dirt-resistant materials to cope with the rigors of 4x4 use.

Driving, this vehicle feels larger than it looks, but doesn't feel unmanageable.

The test car was powered by a diesel engine, though you would only know that at tickover. Once it was on the move it had plenty of go.

The X3 feels in its element when cornering as there is plenty of feedback through the steering, even though I would have preferred a touch more power assistance.

Visibility through the vehicle is good and reversing into tight spaces was no problem, thanks to front and rear parking sensors which can be switched on and off at the touch of a button at the bottom of the central console.

All the switchgear is nicely laid out and easy to use and reach. A screen for the satellite navigation neatly pops up from the top of the dashboard when in use, and also lets you know heaps of other information, including your longitude and latitude and how high you are above sea level - if that sort of thing interests you.

Useful in the desert, I suppose, but not that helpful in a Waitrose car park (260ft above sea level for the record).

Storage space is very neat, as you would expect with BMW, with cup holders, door bins with elastic nets and a good-sized boot, which has a deep square compartment at the back which neatly fits bottles.

The X3 feels more of a working vehicle than a glam one, as every time I went to get out of it I never failed to rub the back of my legs on the narrow running strip. No bother if you are in everyday wear, but not so good if you are getting out in your posh frock.

It is not as big as its X5 sister, but it is just as useful. So sometimes bigger is not better.

David and Marie Duffy

AUTO FACTS

MODEL BMW X3 2.0d SE

PRICE £27,325

INSURANCE GROUP 15

FUEL CONSUMPTION (COMBINED) 39.2mpg

COMFORT Excellent

TOP SPEED 123mph

LENGTH 456.5cm/179.7in

WIDTH 185.3cm/72.9in

LUGGAGE CAPACITY 16.9 cu ft

FUEL TANK CAPACITY 14.7 gallons/67 litres

CO2 EMISSIONS 191 g/km