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I've had two E36s, after the first one I said "never again" but I was lured back. So this time for good - "never again".
Both were nice driving cars, but the interior is an embarrassment. Cheap materials and poorly assembled, they creak and rattle like an old Chevy. That is, when parts don't just break and fall off. Having looked at multiple higher mileage E46s I would say that they hold up much better.
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I thought the same thing about how they were just totally cheap alltogether. Coming from 80's Porsches you just expect things like stainless exhaust and nice interior materials. There were just a bunch of "what were that thinking??" things all over the car like putting vinyl on a concave surface. The E46's seem nicer but it will be interesting to see how they hold up down the road with even more computer junk and plastic stuff.
People were always telling me German cars were only designed to make it through the warranty period and when I owned Porsches I had no clue where they were coming from. Within the first week of E36 ownership I knew exactly what they were talking about.