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Hi
I owned bmw e39 540i before buying an e46 m3 and for me it felt like a huge step up the ladder. E39 540i is a great car and you really feel the power of v8 but even with the sport package (lower suspension) and manual transmition it felt like driving a familly bus compared to a e46 m3. With m3 I have a feeling that I am driving a true sports car specialy with sport button turned on, which improves throttle response. The car feels really agile both at low and fast speed. Also the exterior and interior of the e46 m3 is unbeatable, specially with different variations of colours you can find, mine is phoneix yellow with kiwi interior. However M3 may be limited for modifing as bmw already squeezed every possible HP out of the engine and the only option to add massive HP is through turbo or supercharger. Also aftermarker parts for m3 are expansive compared to asian imports. A top of the line Grouppe M carbon fibre cold air intake will cost you at least $2,000 with shipping. My suggestion would be to take all the cars you like for a test drive and see which one suites your style best. For me e46 M3 is one of the best cars in the world and I wouldn't trade it for anything. Just my two cent...
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