I guess it's a good move, since space is your main complaint.
For me though, it'd be hard to go to the e46 body style since the e92 version has been out for a while now. I'd probably take a 335i Coupe over the e46 M3. With the turbos, that car is about as fast, and fresher looking -not that the "vintage" Bimmer looks bad. Could you do something like that?
I'm still dying to drive an M Coupe. Have you considered that?
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