Not so long ago there were those who argued that the growing popularity of MPVs signalled the death of traditional family estate cars. MPVs, they claimed, were roomier, cuter and easier to drive.

But in the autumn of 2004 the estate car fought back, in the form of the third generation BMW 5-series Touring. Not only was it large enough to carry a family but it offered owners a level of refinement and driving dynamics that an MPV simply couldn’t match.

Based on the 5-series saloon, the new Touring was larger and cleverer than its previous incarnation. The car’s larger dimensions were well invested, with boot space up to a respectable 535 litres and rear legroom that was noticeably more generous.

Standard equipment levels now extended to climate control, alloys, electric seats and traction control, plus you had the choice of a long list of tempting options, including adaptive headlamps, which look round corners, and a fighter-pilot-style display system that projects information onto the windscreen. As a result, few cars left the showrooms without at least some of the extras, but when you are buying secondhand do not pay a big premium for a car with a long list of options simply for the sake of it. The standard car is a gem in itself.

Being a BMW, the heart of the 5-series Touring is under its bonnet and at launch there was a choice of three diesel and two petrol engines. More engines soon followed and by September 2005 three more petrols and two more diesels had arrived.

As a general rule of thumb the big-engine petrol models are great to drive but expensive to run, while all the diesel models are almost impossibly refined and reassuringly economical. If your budget will stretch then treat yourself to the 535d. It comes with a twin turbo 3 litre diesel engine producing 272bhp and 413 lb ft torque. Performance is mind-blowing: 0-60mph in 6.5sec and a top speed of 155mph, all while returning nearly 35mpg. If ever there was an argument for changing from a petrol car to a diesel one, the BMW 535d is the best one I have heard.

But powerful engines can perform only if they are attached to a well engineered platform. Here the Touring comes up trumps again since it shares its underpinnings with the 5-series saloon. The Touring’s computer-controlled antiroll bars and self-levelling rear suspension make it every bit as good to drive as the saloon. Even when loaded with people and luggage it remains composed, while the standard Dynamic Stability Control system protects and flatters the enthusiastic driver.

However, it is well to remember that despite its performance the Touring is still an estate car — and there is a limit to how much sportiness it can take. Buy a 5-series Touring with the larger 18in rims, shod with run-flat tyres and sitting on the Sport suspension and you could regret it. The combination may be pleasing on the eye but it is painful on the spine.

For most people I would recommend trying the more relaxing ride of the SE rather than a Sport before making a decision.

The best selection of used 5-series Tourings can be found at BMW franchised dealers, although as prices fall more will appear on independent forecourts and in the private classifieds. If you are buying outside the dealer network bear in mind that — being a BMW — the car’s service history and condition should be impeccable.

Just when the estate car looked as if it were consigned to motoring history BMW managed to build one that blends performance, practicality and good looks in a way that no MPV could ever achieve. Far from rolling over and giving up the fight the 5-series Touring has proved that good estate cars can still be great motor cars.

Rear boot space

At 535 litres it is the best 5-series Touring boot yet but still well down on the 650 litres of the Mercedes E-class. The 35 litres of underfloor storage space are useful but most owners will prefer to fill it with the optional space-saver spare wheel, notwithstanding the run-flat tyres

Self-levelling rear suspension

Standard on all models and ensures composure when the car is heavily laden

Head-up display

Optional extra but highly desirable as it projects a range of information onto the windscreen, including road speed and satellite navigation directions

Leather upholstery

Not standard on entry-level models

Sport trim

Larger 18in alloy wheels, sports seats, metal trim inserts and sports steering wheel are standard but firmer suspension can prove very harsh

Adaptive headlights

Optional factory extra but they offer superb lighting

Service interval

Variable service interval so check the book carefully and ask for original invoices to confirm the service work

iDrive control system

Improved compared with the original BMW 7-series system but it remains an acquired taste

Vital Statistics

Model BMW 535d SE Touring

Engine 2993cc, six cylinders

Power 272bhp

Transmission Six-speed automatic

Fuel 34.4mpg (combined cycle)

Acceleration 0-60mph: 6.5sec

Top speed 155mph

The one to buy

A 2004 54 BMW 535d SE Touring auto with 40,000 miles. Pay £27,250 at a BMW dealer or £26,000 privately

Or for similar money

2002 02 Range Rover 3.0 Td6 Vogue

2003 53 Volvo XC90 2.4 D5 Executive

2003 03 VW Touareg 5.0 V10 TDI

2005 05 Mercedes E 320 CDI Avantgarde

2005 05 Audi A6 Avant SE 3.0 TDI quattro