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Hoops, what didn't you like about the Yeti? Am genuinely interested as we're considering test driving one, in a similar position, but baby instead of two dogs. For your M135i experience, substitute my E46 M3 coupe. Love it, but it's got to go. Ditto also the parking and length concerns of estate cars. We live rurally so an SUV has benefits although 4x4 drivetrain is main concern.
The Yeti 1.2 is 2WD and pretty basic trim... have you tried an AWD slightly posher one?
I am also drawn to Lexus RX450h as we do a lot of short trips 'around town'.
On that note, any other 4x4 (edit: hybrid or otherwise) we should be thinking of? Budget £20k absolute tops.
They're about 6k