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If you can wait for the B8 platform, do so. The engine will be moved back farther, and the handling/balance will improve.
If you can't wait, the B7 is still a great looking car. The only reason I didn't get one was the seats. If they had offered sportier seats in the A4, I'd be driving that right now. Definitely get the S-line, and the Titanium package if you can.
As for interior, I like the A4's much more then the 3er's.
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