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I just traded my 08 135i sport package with JB3 for a carbon black 04' M3.
Here's the deal. The 135i is a great car and with a JB3 the car is STUPID fast. The torque and pull is insane and really it is a much faster car than the E46 M3. The car is special BUT there was just something missing. I didn't feel attached to the road, it was almost too smooth. The E46 has more character, better looks, better sound, better feel. Hard to describe but the M just feels right for me.
One thing that is a heavy factor for me is depreciation. IMO, you buy these cars 2 - 4 years old and drive them for a couple years. That's what I'm going to do with the E46 then I'll sell it for a few grand less then I bought it for and buy a 3 - 4 year old E92.
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