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You're going to miss the torque and the great gas mileage of the 335i.
The M3's are getting a bit long in the tooth, don't jump into one blindly. There are a lot of incredible options to be had for that kind of money in 2011.
My advice is to go out and drive a lot of cars and see what you like best. Maybe the M3 is the right car for you, maybe it's not?
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