The new 323i loses a touch of its sporting spirit, but becomes even more refined and quiet, as well as much more technologically advanced. It is the near-perfect, if smallish, embodiment of what a sedan should be.
Some of the technological advances in the 3 series are:
1. A new (and rare in this class) side head protection airbag system. This does a great job of keeping your head from smacking the window if you are hit from the side. It will soon be mandatory on all vehicles.
2. Vehicle skid control. This brakes each wheel individually to correct
you if you take a turn too fast or otherwise loose traction.
3. variable camshaft timing to give good low end and high rev performance (double VANOS)
4. A slick 5 speed automatic with manual shifting ability. This is fun to do, yet you don't get the problems in traffic which a traditional manual gives you. The 5 gears also really improve performance. The 323i isn't a high horsepower vehicle, yet it really moves well.
5. A neat programmable key system. It serves as a passive antitheft device (the code has to match or it doesn't start), it can remember your seat and stereo settings, and various other "gadget" functions.
The BMW 3 series combines a surprisingly quiet and smooth ride with excellent handling capabilities, especially with the optional sport package. It isn't a sports car, per se, but it is as close as you can get in this price range and still have 4 doors. The interior is refined, useful, and comfortable. The steering wheel doesn't tilt far enough down for my tastes, for some reason, however. Storage is at a premium (a result of its size limitations), but the cupholders work well and I just toss stuff in the back seat that is too big for the tiny compartments up front.
The free maintenance-for-3 years program is a real plus. The 4 year, 50,000 mile warranty also make owning a BMW cost and worry free for several years into its life.
This current BMW is best for those who want safety, performance, and a little luxury in an affordable (barely) package. They should want to be a little different than the camry and accord drivers out there, though those are a better value for the money. For my money, the 323i is the one to buy. The 328i is about $5000 more, and the performance is more than adequate with the smaller engine.
CONS of this vehicle are its relatively small size, relative lack of rear seat room and trunk space, and the fact that people may assume you're the stereotypical arrogant BMW driver. Currently the 3 series is HOT on dealer lots, and you may find that for non-sporting drivers, a used 528i is a better investment. A well appointed 323i drives out (tax, title, etc) for around $36,000. New models by makers like Acura ( CL type S ) are faster, more spacious, approach its handling ability, and are probably more reliable....for less money. But the 3 series looks great and is hard to beat in the "fun to drive" category.
UPDATE! I just saw on NBC's DATELINE that the BMW 3 series just won the Insurance Institute for saftey's highest "BEST PICK" rating for crash performance in their offset test. In fact, the front windshield didn't even break.