I appreciate all the input! I am a big fan of Audi but now am very torn between these 2 cars. I will definitely test drive and look at the details of both cars to get a feel for them, which is the fun part of car shopping.
I may be in the minority, but I prefer the look of the face-lifted (and even the original) Q3 over the X1. I love the understated and clean look of the Q3 compared to the extroverted look of the X1. Audi's clean interior is still on the top of my favorite list. As far as the price goes, BMW used to be more expensive compared to similarly-equipped Q3; however, by switching to the new front-wheel-drive platform (cheaper production), the 2016 X1 now offers more standard equipments for starting around $33,000. I am now very interested to price out a X1 that is similarly equipped to a 2016 Q3 Prestige but have a feeling that the price difference is not going to be as large as it was for 2015 models especially given that the price of 2016 Q3 Prestige is now over US$42,000 with sport package (over $2000 increase over 2015 Q3) while still lacking some expected standard equipments for a luxury car, such as driver memory seat and USB connection, not to mention that X1 is for sure to beat Q3 on the gas mileage (2016 Q3 quattro: 20/28/23). Maybe now Audi dealers will be more willing to make a deal given X1 having its target directly aiming at Q3, which would definitely help make my purchase decision easier.
It will definitely be a pretty tough decision for me to make when it's time to make the purchase. I know I am going to love the drive of Q3 and am very anxious now to do a head-to-head comparison of these 2 cars this fall.