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I own both -NOW- and I drive both now and there is no question in my mind that the E46 is the better car.
I could go on and on about all the reasons why but everything the OP said is dead on. Obviously the E92 is newer with more power but its not much faster in the end. The E46 is a faster revving sportier car, its lower to the ground, has better lines, wider looking stance (I've got wider tires all around that amplifies this), and it doesnt have half a dozen of the annoying electronic gizmos that don't work properly that are on the E92 (press the up button on the steering wheel and the sat radio preset goes DOWN, having to press and hold the ignition button for the car and radio to turn off etc. etc.
The two things that the E92 has over the E46 is that it has no rattles, has other upgrades and gadgets that do work properly and feels like a new car.
I've been trying to get myself motivated to sell the E46 but I know for sure I will dread the decision if I do it...however I also know that sooner or later the repairs will start adding up.
I also get minor work done at a repair shop here that works primarily on M3's...they personally own E30, E36 and E46 M'3s....their opinion is the same...the E92 is a more cheaply made car that has little performance upgrades over the E46 and we both agree the body style is so so.
And last but not least....the E30 comes in 1st place in my book.
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