I have one of each
I have a 2000 323Ci (ordered new) and recently purchased a 1994 E320. I don't think it is really fair to compare these two cars (because of age difference, 5 speed vs. auto, coupe vs. sedan, etc.). Having said that, I've had the BMW in the service dept. for many problems that shouldn't happen on a new car. I bought the E from my uncle, so I know its service history well and have all of the service records (112,000 miles). It has also had many issues. I think once I "modernize" the E with all or most of the conveniences that I'm used to (keyless entry, upgraded stereo, cupholders, etc.), I probably will prefer to drive it. Maybe I'm getting old, but I love the auto transmission and the engine's power. I think the ride and handling are terriffic for a car of this size. The interior is comfortable and has a classy look. I usually drive my Cherokee everyday, I'm finding myself driving the E320 more and more frequently because I think it is a fun and comfortable car. In conclusion, once I get the E like I want it, I'm selling the BMW. I will however probably purchase both makes in the future.