I have owned 11 cars in the past 10 years from VW Jetta, to Audi v8 quattro and Porsche 944, the 2 best being the Porsche 944 and 86 BMW 325e I have now. Only reason I liked the Porsche better is that there was no understeer during harsh cornering, the BMW 325e kinda feels like my '92 Subaru Legacy when pushed in corners but not as much understeer however very refined and still a great alternative to many new performance cars made today with an E36 M3 engine swap it should be even more devastating this car is still better in other ways than the 944 like reliability. With racing dynamics tower brace, bilstein shocks and H&R springs it helps me keep up with a Cayman S on twisties literally.
I love the old school styling, smooth and sufficient torque, the '86 325e for economy is not a slouch when mated with Jim Comforti chip, K&N cone filter intake and of course ME. I love the smooth but yet quick and precise steering response it has with the upgraded suspension components.
Production of this gem has passed but bmw should have given it a turbo like the 2008 135 for easier power increase regardless of it outperforming the M3 which it can anyway with available powergrades and its 2.7L engine vs the M3 2.3L with the same 170 ft.lb. torque available at higher revs.