I'd say the E46 definitely has more room and a nicer interior, but what happens when we talk performance? I figure they've got similar power ratings (240 vs 220hp), but the M3 probably handles better and has better gearing (=faster?).

And then there's the question of cost - the M3 would be cheaper ($25-32K is the range I'm thinking here) but insurance a good bit higher which might make up for the price difference. (speaking of which, just how much higher is the insurance on an M3?) A 330i seems to be in the $36-38k range which is a bit more than I want to spend on a car at this point. Of course, that would be a new car vs a used car.

If performance is close, I'd lean towards springing for the 330. If not, the M3 looks to be the winner.

Other cars under consideration are the Audi S4 (new or used, not sure) or a used M roadster (yah, i know... the last one is a very different beast, but it's still on my mind).

So what do you guys think?

Mike