Why Do So Many People Love the 2025 BMW M5 PHEV Touring Wagon? I Reviewed it and Now, I Get It
When the BMW M5 Wagon was finally brought over from Europe, the company didn't think it'd sell. Here's why they were wrong. Very, very wrong.
Like sedans, true wagons are a dying breed. They’re effective, with lots of room, a comfortable ride, and plenty of legroom—but even the Subaru Outback couldn’t keep up with the market’s demand for SUVs. So, when BMW decided to bring the M5 Touring Wagon PHEV, which was previously a “Europe-Only” model across the Atlantic, it was more of a social experiment. The Germans didn’t think it would sell; they figured no one would want to spend at least $121,500 on a relatively efficient, 717-horsepower Smyrna green behemoth.
They were wrong. The BMW M5 Touring Wagon flew off the shelves like bundles of toilet paper during the pandemic, and to say the company didn’t anticipate it was an understatement. To their amazement, Americans do want a wagon that refuses to compromise on all aspects of life—including family life.
Six figures for a performance wagon is no small ask, but after driving one for a week, it’s a very reasonable one. Stay with me.
This story is 100% human-researched and written based on actual first-person knowledge, extensive experience, and expertise on the subject of cars and trucks.
It’s True—The BMW M5 Touring Wagon is Outselling the Sedan
Interestingly, BMW itself seemed to underestimate our appetite for a high-performance wagon. When the G99 M5 was being planned for the U.S. market, internal projections were cautious. They initially expected a much heavier tilt toward the traditional sedan, since American buyers have a steady appetite for them.
However, the reality on the ground has been a wake-up call for Munich. Current data shows that the M5 Touring Wagon is effectively outselling the sedan in the United States—a complete reversal of the typical European market trend. While BMW North America was originally planning for a 2-to-1 sedan-to-wagon production ratio, they’ve had to scramble to ramp up M5 Touring Wagon allocations because the “long roof” models are flying off dealer lots while sedans are actually sitting.
It turns out, Americans didn’t just want a fast BMW; they specifically wanted this fast BMW. Why is that? Here’s what I put together after driving one for a week:
- It’s Powerful: Under the hood is a plug-in hybrid powertrain, pairing a potent 523-horsepower twin-turbo V8 to a 194-horsepower electric motor directly integrated into the transmission for precise, instantaneous torque. Together, the M5 Touring Wagon produces a staggering 717 hp and feels like a literal missile on the road.
- It’s Practical: You get 27.2 cubic feet of space behind the rear seats for strollers or Costco hauls, which expands to 67 cubic feet with the seats folded flat. Plus, if you’re a skier, the middle rear seat can fold flat while the passenger’s seats stay upright, so skis can fit in the middle without having to remove car seats or disturb rear passengers.
- It’s Efficient: When the battery is charged, you get 25 miles of purely electric driving—perfect for quiet school drop-offs or bouts around town. But with five different hybrid modes, including Dynamic Plus for track-ready output, it can instantly pivot from a tame family hauler to a true swagger wagon. In hybrid mode, it’s a tame hybrid that can get as much as 25 mpg. Can you name another twin-turbo V8 that gets such good gas mileage (that isn’t a BMW)? Go ahead, I’ll wait.
The Power Wagon is No Cheap Ride, But the Price is Right
I gasped when I read that the final price of my tester was $145,775. I thought there’s no way a BMW could be so good that it’s worth what could be the downpayment on a nice house. Mine came with a few performance-oriented and aesthetic upgrades that bloated the price by $24,275 (base MSRP is $121,500). But, like the BMW execs, I was wrong.
Here are the upgrades that were listed on the Moroney, and how they added to the overall experience:
- M Carbon Ceramic Brakes ($8,500): These high-performance rotors resist brake fade during intense driving and significantly reduce the vehicle’s weight for improved handling. BMW says these weigh half as much as the standard rotors, so this is only worth it if you plan on tracking it.
- Smyrna Green Individual Paint ($5,000): A premium, custom color that provides a distinct, high-end look not offered on standard models. It’s pricey, but it’s such a gorgeous color in person. I received so many compliments on it.
- M Driver’s Package ($2,500): This increases the electronically limited top speed and includes a voucher for a one-day performance driving class at a BMW Performance Center. Since most driving classes cost around this much, this is a very reasonable upgrade.
- Driving Assistance Professional ($1,700): Adds semi-automated driving technology, including hands-off highway cruising on certain, pre-mapped highways at speeds up to 85 mph.
- Executive Package ($1,600): Includes luxury features like the illuminated “Iconic Glow” kidney grille, which is usually reserved for BMW EVs, ventilated front seats, heated rear seats, an interior camera, and manual rear side window shades.
- M Drive Professional ($900): Offers track-focused software tools like the M Drift Analyser and M Laptimer, along with additional performance-oriented drive modes.
- Carbon Fiber Silver Thread Interior Trim ($300): A cosmetic upgrade replacing standard materials with a technical carbon fiber weave for a sportier feel.
Even if you decide to skip the heavy-hitting option packages, the 2025 BMW M5 Touring Wagon comes with a substantial list of standard equipment that upholds the brand’s luxury and performance reputation, like all-wheel drive that can be switched into rear-wheel drive to save fuel (or facilitate drifting, which BMW encourages), a 3D premium sound system from Bowers & Wilkins, and a fixed, and a “Sky Lounge” panoramic sunroof that spans over the second row—my daughter’s favorite feature.
Its Delights Include Hybrid Technology, Light Shows, and Brilliant Software
BMW designed the M5 Touring’s technology to be remarkably intuitive, despite how much the system actually offers. The centerpiece is a bright, 14.9-inch multimedia screen that is designed to be perfectly legible even in direct sunlight. The software is seamless and user-friendly, utilizing simple app icons and easy-to-navigate menus that won’t cause eye strain. I found it to be one of the easier user interfaces to navigate. It also comes with a comprehensive and non-intrusive HUD, which, in true BMW fashion, is fully customizable.
The performance technology is where this wagon truly separates itself from a standard family hauler, though. The sophisticated plug-in hybrid system paired with the pricier M Driver Professional upgrade means it comes with five distinct modes: EV, Hybrid, eControl, Dynamic, and Dynamic Plus. While eControl prioritizes the gas engine to save battery for later, Dynamic Plus pushes the V8 and electric motor to their absolute limits for short bursts of maximum power.
For instantaneous speed, there is even a “hidden” boost function activated by holding the left-hand shift paddle for more than one second, which immediately snaps all systems into their sportiest settings. Beyond the raw data, the M5 offers a sense of theater through its customizable lighting and M Drive settings, which my toddlers and husband thoroughly enjoyed.
This is purely aesthetic, but I very much enjoyed the startup lightshow—when I’d open the driver’s door and hop in, the iconic M colors sweep across the cabin’s surfaces: the driver’s door, under the multimedia display, and across the passenger’s door. That hints at the ambient lighting options, which are incredibly customizable (I always pick purple). They even adjust to the drive mode you pick, too.
Teach Your Kids to Love Performance Driving Without Making Them Barf
The 2025 BMW M5 Touring Wagon manages to balance its track-ready DNA with a surprising amount of daily-driver comfort, proving that a 717-horsepower machine doesn’t have to be cruel and unusual punishment. While the ride can be a bit stiff in performance modes (which is to be expected), it transforms into an entirely different animal when shifted into comfort mode. In this setting, the steering becomes lighter, and the suspension smooths out significantly, making it perfectly suited for long road trips or appeasing passengers with sensitive backs.
There are more than a few drive modes to choose from, but as you’re probably guessing, you can customize each one. You can refine the steering feel, the suspension feel, throttle response, braking intensity, and even how loud the exhaust is with a few taps on the main screen. When I was alone, I enjoyed the thrill of the V8 hybrid in Sport mode because I loved the louder growl of the engine, but when my kids were in the back, I kept her in Comfort mode.
It Can (And Should) Be Driven Comfortably Every Day, Thanks to Standard Driving Assistance Features
The M5 Touring Wagon PHEV is definitely performance-oriented, but I truly appreciated that it isn’t just a one-trick pony. It can do a little bit of everything, and it can do it brilliantly. In the morning, I enjoyed the adrenaline-spiking V8 in Sport mode with a loud exhaust, and in the afternoon, I softened up everything up and quieted things down to do my errands around town.
In traffic, I got to experience BMW’s driving assistance features, which, to me, felt standard-setting. The driving assistance and safety suite in the M5 is truly top-tier, featuring advanced semi-autonomous technology that allows for a “hands-off” highway experience at speeds up to 85 mph with the Active Driving Assistant Pro package. The M5 Touring Wagon also features Evasion Assistance, which helps you carefully avoid obstacles without turning off cruise control or traffic jam assist.
A standout feature is the Active Lane Change with Eye Activation; when the car identifies an opening to pass a slower vehicle, it waits for you to glance at the corresponding side mirror before executing the lane change, ensuring you’ve double checked that it’s safe to change lanes.
When I found myself stuck in traffic (a rarity for the Bay Area, I know), the Traffic Jam Assist managed the steering, braking, performed lane changes, acceleration, and even did the stopping and going for me as long as I was driving slower than 40 mph. The interior camera is there to snap you back into reality if you look at your phone for too long, too.
Because it’s a performance car first, BMW implemented three drive modes that determine when and how these systems are activated, depending on how you’re using the M5 that day. Road has all systems active at all times, assuming you’re using the Touring Wagon for daily errands. Sport turns off the lane departure warning and side collision mitigation so you can carve canyons without these systems assuming you’re being dangerous. Track turns everything off—even the multimedia screen—so there’s zero distraction.
The M5 Wagon Will Turn You Into an Enthusiast, If You Weren’t One Already
Yes, the 2025 BMW M5 Touring Wagon is mighty pricey. But, to me, it’s worth every penny, because it’s a rare breed. It’s pretty good at everything: it can haul the family, haul the goods, it’s fun to drive, even more fun to look at, and for a V8, it’s efficient. It’s literally everything I could want from a luxury performance car. No wonder it’s outselling the sedan.
From now on, every luxury performance car will be compared to this one. It holds a very dear place in my hard-to-impress heart, and I often think about the male nurse who saw me parked, smiled, gave me a thumbs up, and mouthed, “Nice” to me. This car is truly a showstopper, in more ways than one—and it definitely deserves the praise.
More About:Car Reviews