BMW has added an M3 model to the 3-Series lineup for 1995, and it's been winning rave reviews from the press and public. The M3 has a 240-horsepower inline six purring away under the hood, suspension modifications designed specifically for the war-torn roads of America, huge brakes, and supple leather seats; all for less than $40,000. Sadly, a sedan version is not planned for the U.S.

Also new this year, a BMW hatchback based on the 3-Series. Called the 318ti, it's priced evenly with the Volkswagen GTI, though performance levels fall a bit short of those of the vaunted VW. Identical to the 318i from the A-pillar forward, the 318ti should win the hearts of younger, less-affluent buyers looking for Germanic sporting fun.

The rest of the 3-Series line carries over for 1995, which is no bad thing. This BMW has won the favor of driving enthusiasts everywhere for its capable handling, first-class ergonomics, and classic styling. Prices start right around the $25,000 mark, just $5,000 above the average price of a new car in the U.S. The 325i and 325is, two of the three performers in the lineup, do have base prices that are a bit higher.

Bottom rung 318's are powered by a 1.8-liter four-cylinder, while midrange 325 cars have a 189-horsepower six doing the motivational work. All 3-Series models have dual airbags and antilock brakes, and six-cylinder cars get optional traction control. Sedans, coupes and convertibles are the available body configurations.

For the money, BMW's 3-Series is tough to beat for sophistication, safety and performance, particularly in M3 guise.