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I sat in the new M3 and M4 in detroit, both had full leather and I also own an F10 M5.
1. The leather quality of the dash and door panels is similar to the M5, although in the M3, the bottom half of the door is not leather. There is less overall coverage in the full leather package in the M3/M4 versus the M5.
2. The M5 leather seats are of a higher quality, although the new M3/M4 seats are very sporty and have a nice feel.
3. The M5 has alacantra suede, which creates a very luxurious feel. The M3/M4 have the black headliner (forget the name).
4. The biggest difference is in the dials, buttons, and plastics in the M3/M4. Overall they feel cheaper than the M5. The M5 does not have any hard plastic and the dials and buttons are of a better quality.
Overall, the interior is not a deal breaker for me. I can be just as happy in the M3/M4 as I am in my M5 given the price difference. Hope that helps!
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