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i also wouldn't count out a 328i. most of the M parts swap right over and thoes cars are usually in better shape than the m3's that cost only a few bones more. most m3's worth buying are in the 13-18k range and that's a bit much. a pristine 328i can be had for almost 10k less. then it's a suspension, IM, cams and rear end away from an M. think of it like buying a GSR and swapping over for type R stuff minus the head and 4/5 lug issues. also the insurance is WAY cheaper. i want an E36 after i graduate but will more than likely go with a 328i for the reasons mentioned above. try the bimmerforums.com they have e36's for days.... GL
I have a 97 M3 which is the first year that they came with traction control and I do just fine in the ice. I haven't had a chance to take her on the snow, but I think she do fine then too. My husband has a 95 M3 and I can tell the difference between the two when the weather is bad, even in the rain.