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I have had the H/K upgrade to Stage 2 Bavsound (all speakers and subs) and now have B&O in my M5. I agree that the B&O is a little week on the highs and I would say the H/K upgrade from Bavsound was weak on the bass. I felt the Bavsound's under seat "subs" were not nearly as low as my stock H/K's but they were tighter and filled in the mids I was missing. I ended up keeping all the speakers but the underseat subs, I switched those back to stock to keep the low end and was fairly satisfied.
My H/K system was in a 2013 3 series so I'm not sure if it's exactly the same as the 5-series setup but I would definitely not have been happy with the stock H/K where I am actually pretty happy with the B&O in my M5.
There are other options to upgrade the H/K system if you end up not happy with the sound. MusicarNW is in PDX and they do AMAZING work on BMW sound systems if you really want a great system down the road. Personally, I did look for an M5 with the B&O but if I found the perfect car with the H/K, I'm sure I would have still made the purchase. I agree that the full leather is a more important option if you had to choose between the two.
FYI, car stereo systems used to be my passion before I got old, so I am very picky about car audio and have a lot of experience with both SQ (sound quality) and SPL (bass head) systems.
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