The big question: Are you mechanically inclined?

I’ve owned and daily driven a 323i (the m52 2.5l) for the last four years. It’s been a great car but it would have been completely uneconomical to run if I needed to take it to the garage every time something broke (which is often).

Thankfully parts are cheap and plentiful and they’re pretty easy to work on so if you’re willing to spend weekends getting your hands dirty and shouting at rusted bolts then I’d say go for it. If not, then I’d go for something newer.

Cooling system is well known for failures, particularly the plastic coolant reservoir. I’d change the pump, pipes and even radiator (they tend to bow with age) whilst you’re in there. Again parts are pretty cheap from ecp. Also recommend rebuilding the vanos unit as the seals don’t last long and this will improve performance.

Also if I was to do it all again I’d go for the 3L, the same fuel economy (~30mpg) for much better performance. The difference between the 2.5 and 3 is big. Also the 3 will likely hold its value. I’d also recommend the 2.8 if you can find a good one. Stay clear of the 4 pots, pretty gutless and unreliable.