True, but I think the logic is that if you don't need the larger car, you can save money and weight(?); not that it is a 'budget' BMW.
Of course, the real kicker is that a 3-series coupe can get ED pricing of Invoice+$1500 or better, compared to no real discount for the "new" 1-series.... meaning the 3-er might be the same price! YMMV of course.
335xi sedan 6MT, Premium, Cold Weather, iDrive, CA, iPod
Black Sapphire Metallic, Black Leather, Aluminum Trim
European Delivery: April 28 - May 7, 2008
Performance Center Redelivery: July 11, 2008