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I just traded in my 2005 Z4 two months ago. It was the most fun car I have ever owned. I was first owner and put on 30k miles in two years. You sit lower in the Z4 than you do the Boxster - very comfotable - it just forms around you. Very responsive and solid on the road. Shifting is smooth and positive. No reliabity problems in those two years. No squeeks or other issues. Also, BMW has great service. For 4 years/50K miles, everything is free. Oil change, wipers, etc. Also, I believe that the Z4 has more eye appeal than the Boxster.
Why do I have a 2007 Boxster S on order now? It wasn't my original intention. I was at the dealership upgrading my 2005 Z4 to a 2007 Z4 with a little more engine, but was turned off by a rude salesman. Since the Porsche dealership was right next door.................to make a long story short, decided to try one (and buy one). Since I only test drove the Boxster, I cannot say whether it'll be better than my Z4. Initial impression is that the Z4 is more spirited and a more comfortable ride for daily use, but the Boxster a little more elegant with race car performance, but a harsher ride. I believe each car has its own niche. One is not better than the other. It just depends how you will be using it. I'll be able to give a better comparison after I get my Boxster and start driving it daily. But if you do decide to get a Z4, I give it my highest recommendation - it is a super car.
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