I got the '89 version. Prev reply was correct. The '88 and '89 were the only ones with the M103 engine. The '90 model was the first year with the M104 engine. There were also some other nice changes starting in '90. There is more wood inside, (on the doors and along the entire length of the dash). The seats were a different style also. At least a different covering. Not sure of the exact year, but my '89 (and I'm 100% sure the '88) have a knob on the door to adjust the driver's door rear view exterior mirror. Sometime, they changed this so that both mirrors exterior can be adjusted from the center console switch.

Another minor change is the radio. Can't tell you the exact model numbers ('88 and '89 had Becker #780, subsuquent models have #1480????) Only difference, that I know about is that the "newer" ones have a greenish/greyish band the length of the radio in the middle. Older model was all black.

I'm sure that there are other differences. But, as stated, biggest difference is engine. Older (M103) has 177bhp, newer (M104 3.0) has 217bhp. Problems with each engine are well known. Just search this forum. (I purchased mine not knowing all the differences. Went with a car that had complete service history thinking it is much more important than engine size or wood trim.)

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Correction to the above re: radios. Only the '90 model have the 1480 radio. Starting in '91, the radio was a two piece affair. The head unit and another unit (the amp?) mounted under one of the seats. All post '89 radios have that trim "band" across the radio.

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Another minor diff. I keep thinking of more of these. The '88 and '89 have Zebrano wood, post '89 have Burl (sp.) wood.