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The E46 is more troublesome than the W203. They have automatic transmission troubles that are only solved through expensive tranny replacement. They have all kinds of electrical glitches. The last of the E36's are older at being 1998 and earlier, but they are better cars. A 1999 E36 328is or 1998 328i is a superior car to the 2000 323i.
Has he looked into Lexus for a V-8? I have seen the GS400 coming onto the used market now at pretty reasonable prices. They are fast and reliable to a fault.
The problem with the W124's is, of course, age. They're all pretty much 10 years or more. If he doesn't mind the size of the BMW, then the last of the W202 C280's would fit, and they are pretty bullet-proof save for the balancer issue. 722.6 was sorted out and the M112 has no major issues. I've seen some really clean 99-00 C280's with warranty remaining for pretty low prices.
Happy hunting...
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