| I have a owned a 325xi wagon for about six years.  Bimmerfest La-Z-Link is my homepage for the BMW. They are actually very realiable, and if you do your own work, relatively inexpensive.  Mine is a DD and its a beautiful blend of sport ride and comfortable cruising.  BMW has figured out how to blend suspension and handling into a driver oriented package.   I would find a car at 50L miles coming off warranty.  Original owners begin to get scared about high dealership repair costs, but haven't yet located a good BMW independent shop.  PS> I would spend more than $10k.  $15+ is the starting point for a good E46.  E39's, however, are also pretty nice cars... just not as much car for the money as an E46.  gordo 
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