I love BMW's, especially the E30/36 models, E36 has probably my second favorite motor of all time, the M50B28, even with the head-cracking problems if you overheat it a little. I'd say 36, but a really great one will be out of your price range. I know of a very cheap 318is without a running motor in it (Has a block but no head, missing a few other components) but even then it would cost you more than your budget to get her running well again. I hate to say this, but pass on the "I must be independent" thing for a while and work on saving some more cash. Keep the Z. It's a good car, will treat you well, and will do wonderful things for your self esteem if you learn to love it. Don't look at it as the car you were given, look at it as your car. Bond with it. Then, when you have a little more cash, start looking for another car then. You've got great taste, but the budget is just a little thin for you to really get something you won't be disapointed in.
Oh, and to whoever said E30's were cheaper to work on: Yeah, yeah lol they are. But the E36 has better style and the M50 engines, worth the extra cost to me.
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