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Congrats on the baby! We were in the same boat 2 years ago and decided on getting the X3. We've been completely happy with it. Plenty of room and decent mileage. The X5 interior feels a bit more premium and the extra size is felt more in the back seats with the extra legroom. The cargo area is suprisingly quite similar, although with the X5 you get that cool bottom fold out tail gate. Go test drive both and bring your stroller and car seat to test out the storage space.
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