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I don't think they are bad cars at all. They had a couple of issues, one is called a "profile gasket" that sometimes blew (internet search should find info), but if the car is running now, I'd think it has already been fixed or is not likely to get the problem.
Other than that, I think they are mechically solid. Used the rear suspension of the earlier 3 series, not a big deal. Interior is kind of plain, but that is what it is.
It's a 4 banger of course, but BMW makes a heck of a 4.
Money pit - I don't think so.
I think they are pretty cool. Don't see them too much anymore. There was a "California" option that included a huge ragtop sunroof. They look really nice with an M front bumper, little lowering, and M wheels. Lots of good aftermarket stuff to make it look and handle better.
Seem to go for pennies these days. If I needed a Hatch, I'd definately consider one.
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