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I have extensive experience in E30s through E46s, and it's all a matter of preference honestly. I can have as much fun in my 320i E30 touring as I do in my M3. Once you hit the track (or Ring), the differences stand out. My E36 M3/4/5 CCA IS car on slicks is incredible on the limit, but doesn't have enough power to really dance and gets walked by my Dad's S54 Mcoupe on straights. My E46 on 200tw autocross tires pivots beautifully and controllably. I know I know, different levels of power inverse with the peak grip available. If you consider what these cars are (or aren't) worth now, I think I'd be just as happy with an E36 dual-duty street/track car if properly prepped. Or if we're branching out beyond M's I'll second the ZHP suggestion and just add a nice diff and oil pump nut to the mix instead.
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