well, i've driven both and they both have strong points. i would say the M3 handles better out of the box, and i do like the interior of the M3 slightly better than the S4. a chipped S4 becomes a real beast- potentially an E46 M3 killer. however, there have been quite a few turbo failures, especially on the 2000 model year. i've heard they started to used upgraded turbos to combat the problem, but it is still a risk. bottom line, i chose the M3 because i wanted to buy and i wanted a car that would be reliable in the long term. the straight 6 is tried and true. the 2.7TT in the S4 is a new motor, and i'm not really confident in its reliability 5 years down the line. if i planned to lease, then the S4 might get the nod.
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