honestly the 320i is a pretty good deal. You get the ZF8 speed auto, the N20 engine, the 3 series body and that interior all for under $40k. You are sacrificing some power but remember the N20 figures are under rated so the car will developed a bit more power than what is stated. Plus you can tune that engine for under $1000 to deliver 328i figures easily. This is probably the best bang for buck in the whole Luxury Sports Sedan line up. Remember this thing still comes with the 4 year free maintenance.
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