I own an E36 and E46 and there is no question that the E46 is by FAR a better car, it drives more smooth, it handles WAY better, 0-100km/h is a second faster! Luxury etc the E46 is also much much better. If you want comfort etc go for an E46 if you want speed and playtoy convert the E36 into a monster of 480hp if you install vortech blower!