Introduction

So after 5 years, I'm back again to once again sing the praises of a BMW 3 series. This time it’s been redesigned and re-engineered and not surprisingly, it's even better. I'm going to make this review a potpourri. There will be a little bit of comparisons with the old 3 series, between trims within the 3 series, even mention of some of the biggest competitors... and maybe even a funny story or two.

For those who want to read about the old E46 325i review:
http://www.epinions.com/content_7182126724

So to put this in perspective I have to go back briefly and share why I am here with another review just 5 years later. Did my 2001 325i just crash and burn? No. Reliability issues? No. Too expensive to maintain? No. I got married and my wife wanted to get a bigger "family" car? Bingo.
So getting rid of my old 3 series had nothing to do with the car itself. It was reliable, fast, and beautiful. Now that we have that out of the way... onto the review.


Decision Making

So the bigger car that I referred to above was a 2003 Acura TL - great, reliable car. Unfortunately, I didn't even get to drive it. I got stuck driving my wife's old '94 Accord EX. After 2 years, OD@170K, 2 flat tires, and a replaced radiator, I had enough and started looking for a new car. I immediately gravitated to the new E90 3 series. However it being a 1st year model, I felt like I had to at least look around.
I test drove the Lexus ES300, IS250, Infiniti G35, the New TL. ES felt too much like my old TL. The IS250 just felt like it lacked power although the interior was very well built. The G35 was the closest competitor - RWD, 298HP, luxury interior - but that front was too plain and ugly and the handling left a lot to be desired. The new TL was too practical (to be honest, the new TL is a great car, probably the best value for your $$ for a practical buyer - but I didn't want 2 TLs).
In the end, the 325i (auto) was the only choice for me. I knew I would regret buying any other car but wouldn't think twice again if I bought this one. It's so much fun to drive and the connection felt with the road is unparalled.


325i E90 vs 325i E46

This can be a review in and of itself but I'll just mention a few key points. The E90 has 31 more HP and 9 more FT-LB Torque. The E90 has a 3.0L I-6 engine vs 2.5 for the E46. The E90 is bigger - esp in the backseats. The body and interior has been redesigned but it's definitely more evolutionary on both counts than revolutionary. I like to think of it as a more refined version of the E46. One note: The standard alloy wheels on the E46 325 look much better than the new E90 wheels.

325i E90 and 330i E90 Differences

For those of you deciding between the 325i and the 330i, it really depends on what you are looking for. With the 330, one gets 40 more horses and 35 extra Torque for about 5-6K extra. The 330i does have a noticeable power difference from a straight line at rest but for normal everyday commuting/driving, the 325 supplies PLENTY of kick. The 330 also comes with more standard features like power seats, xenon lights, Logic7 upgraded sound system. You have to pay extra for these in the 325i so if you like optioning out your car, it might be worth it to get the 330i. For a barebones, performance 325i though - best value in the BMW class for the money, IMO. If you are under budget constraints, the 325i is a great choice and even if you aren't restrained by money, it's still a great choice.


Speaking of options…
I custom ordered my car - which is a wonderful advantage BMW offers to its customers. There is probably very little chance that any 2 ordered cars are exactly alike. Because I was under a 35K budget, I had to pick and choose my options carefully. There were certain things I had to have - xenons, power seats, heated seats. I opted not to go with leather this time around because the leatherette looked and felt so similar and it was $1500 less. So far, no complaints. I also passed on the sports package. I loved the wheels and steering wheel but did not like the firmer suspension (stock suspension is plenty firm for me) and didn't want to risk scraping my rims on every pothole. But - those sports seats and steering wheel were hard to pass up. I struggled a little with this decision.
The xenon lights come with the adaptive function and they light up the road like no other headlights I've had. The angel eyes halo effect is a nice cosmetic touch also. I also opted for the comfort access option. This should've been standard on a car like this IMO but it basically allows you to lock/unlock and start the car without using a key. You just have the key in your pocket and sensors take care of the rest. It's a great option and well worth the $$. You never have to fumble for your keys again. The best color for the car is a metallic $475 option - sparkling graphite. Depending on the light, it looks blue, black, gray, brown, purple - pretty neat effect for the metallic paint.
Other packags I didn't get but are available: Premium (leather,bluetooth,folding mirrors,power seats), Cold Weather (heated seats, fold down seats) are popular as well.
The automatic transmission comes with a regular drive mode, a drive sport mode (RPMs hold longer for higher revolutions), and a steptronic. Honestly, the steptronic is pretty useless to me. I've never seen the benefit on any of my cars. The DS mode however is great. If you want a push off the line or take a merge on the highway, pop the shifter into DS and the smooth I-6 revs up 5000 RPMS before dropping to lower gear.
BMW is known for offering a steering wheel and 4 tires as standard and you pay for everything else. Be careful or your 32K 325i can quickly turn into a 45K car - just be sure you want the options you are choosing. In the end, this car is for the drive itself.

Styling
Chris Bangle freaked everyone out when he designed the new 5 and 7 series. The "Bangle butt" was a horror to most enthusiasts and BMW was universally maligned for the new designs. However sales continue to excel for the 5/7 series and now the new Lexus LS430 has copied Bangle's design. It just shows that BMW is always one step ahead of its competition.
BMW went relatively conservative on the E90 being that this is their bread and butter car (over 100k 3 series sold in the US in 2005). To satisfy the ever fickle sports sedan demographic, the car is longer and wider by a few inches. The angles on the hood and grille are a little sharper and the hood doesn't leak over to the grille like it did on the E46. It looks more muscular and sporty from the front. The classic BMW kidney grille is still there and the wider stance give it a power, compact but still luxurious feel.
The back is the most changed. The rear lights are now angled at 45% towards the center of the trunk with whitelines, giving it more of a Japanese flavor. The trunk is thicker and has less overhang on the rear wheels giving the car the look of a machine or animal ready for launch.
The side profile is sleek and the shoulder line raises subtlety to the trunk and tapers in. This is a car that takes the already beautiful E46 and raises it another notch.
On the inside, the familiar amber glow is still there. The gauges clearly indicate speed and RPMs and the on board computer spews out cool, if not excess info, about oil levels, sparkplugs, tire wear/pressure, mpg, mph, gas mileage. It also allows the driver to configure things like auto door locks and daytime running lights. It used to be that the dealer had to handle these things. The dash is no longer angled towards the driver as BMW tried to be a little more passenger friendly. The dual auto-climate control helps. The power window console is a little hard to reach but still fine nonetheless. Side view mirrors are also on the small side. The leather/ette seats are firm but comfortable and the driver/passenger cabins are spacious and comfortable. However - what were they thinking when the designed the cup holders? It's an atrocity. They are little pop-outs from the dash above the glove compartment. BMW must not want us to drink (anything) and drive :)
The materials in the dash are of very good build quality. It feels like a solidly built car when you sit in the car and slam the door shut.
A few complaints (human nature-I have to find SOMETHING wrong): the radio buttons are counter intuitive, the turn signal click isn't loud enough, IPOD (thru aux port) titles don't show on radio display, not large enough storage spaces for things like coins, cell phone, sunglasses. The cabin has storage, just not enough.

Driving (handling, acceleration, performance)
If BMW can justify its price tag compared to other cars of its class – this is where it’s done (although the competition ain't so cheap anymore). While some other cars that I test drove went faster, none put all components together as well as the 325i did. I have taken my car around sharp turns and tight jug handles and the car feels like it’s a train on railroad tracks. It’s hard to lose control of this car even when you try. What other car can take a hairpin exit ramp at 60 without braking and still feel safe? The torque at 185 may seem a little lacking and it auto mode at rest, the 325 may seem a little sluggish (they made the engine too smooth). No problem - move it over to DS and the car jumps ahead pumping gas into the engine and hitting 60 in just about 7 seconds. The torque peak at 2750 RPMs (super low!) gives the driver the pin-you-in-your-seat feeling when you step on the pedal. The passing speed is really where this car shines. Take this car from 30-50-80-100. It's effortless - it's like the car hits another gear and just takes off. At 100mph, it feels like you're cruising at 55 (BTW - limiter is set at 130). Good luck trying to activate it. I haven't been able to yet:) This car just wants to go fast and is most comfortable in that range. The brakes are phenomenal- as a matter of fact C & D recently tested and rated the 325i’s brakes as the best of its class among 7 other highly competitive compact luxury cars. It stops on a dime.
No other car allows you to feel connected to the road like the 3 series does.

Safety
Safety equipment the 325i includes All-Season Run Flat Tires and Dynamic Stability Control (DSC), along with dual front airbags, door-mounted side airbags a Head Protection System (HPS). It also comes standard with adaptive brakes and a bunch of other stuff that you can find on the bmwusa.com website - no need for me to go into detail here. I'm still undecided about run flats. They supposedly affect performance but I haven't seen that yet and I suppose being able to drive 100 miles at 55mph on a flat tire is pretty cool.

Maintenance
4 years/50K - everything is paid for minus gas and tires. That's a pretty good deal. My last E46 had virtually no problems in the 3 years I had it so that bodes well. Being a 1st year model, admittedly I am a little nervous but reviews thus far on forums have been positive. JD Power now ranks BMW as above average for reliability (2005) so that's a step in the right direction also. Some recommend an oil change before the recommended every 15K but that's personal preference. You will have to pay if it’s before the regularly scheduled maintenance.

Pricing and Haggling
Buy your car over the internet. Use carsdirect or edmunds.com to send out quotes and only deal with the dealerships fleet or internet sales departments. Since they deal w/ volume you are much more likely to get a better deal - as long as you know exactly what you want. So do all of your research beforehand. This is how I bought my 325 and will never buy a car the traditional way again. I signed all my papers over fax/email and never even met my salesperson until I went and picked up the car 5 weeks later. It was the car smoothest transaction I have ever had and the most $$ I have ever saved. $470 over invoice.

Conclusions
So I went through a lot but the bottom line is that if you are in the market for a compact sports sedan, no other car comes close to putting the complete package together. Once you drive this car, you won't want anything else.