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Video: 2025 BMW M5 Touring Is a Hybrid With Hidden Costs

02:55 min
By Cars.com Editors
October 31, 2025

About the video

The 2025 BMW M5 Touring is a plug-in hybrid that surprisingly incurs a $2,600 gas-guzzler tax typically reserved for vehicles with low fuel economy. We explain how a hybrid can be subject to such a tax.

Transcript

Wanna know something Mind boggling? This is a plugin electric hybrid, the BMW M5 Touring, but it gets hit with a gas guzzler tax. What is going on? Well, let's explain what happened.
(mellow music) The gas guzzler tax has been around since 1978 to penalize automakers who aren't meeting fuel economy standards. And that goes until today. Now, the fuel economy standards include cars, not SUVs, not trucks, cars. And even though this is a wagon, it is still classified as a car. So it gets hit with the gas tax, so does the sedan version of the M5, and it's $2,600. And the tax is determined by the fuel economy. And the M5 Touring has a 13 miles per gallon when all of the electric energy runs out. And anything below 22 and a half miles per gallon is subject to this gas guzzler tax. And here's why I don't think this is actually gonna be a big consideration. (engine revving) M5, 717 horsepower, about 200 horsepower from an electric motor, 500 horsepower from a twin turbocharged V8, zero to 60 in three and a half seconds. It's a rocket ship. Acceleration is definitely one of the strongest parts of the M5 and you know what, you can kind of look over just how inefficient it really is. I've got the trip meter up, which is measuring our fuel economy since the last time we refueled, 17.7 miles per gallon. And, you know what? That's not surprising because I've been driving it like this. (engine revving) But the other consideration for its poor fuel economy is really just how heavy it is. This car is about 5,500 pounds and that's as much as a Chevrolet Tahoe three row SUV. It is a heavy vehicle, which no doubt hurts its fuel economy. Is a $2,600 gas tax going to stop anyone from buying this car? No, that's only 2% of the $144,000 as tested price of this M5 Touring. And you know what, it kind of adds to the character of the vehicle, that this is a highly ironic car. It's a plugin hybrid with a gas tax. It's a station wagon with 717 horsepower. And I think that just overall adds to the cool factor of the M5 Touring.

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