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Even at $37k its still 4-5k cheaper than a similiarly equipped 335i. The performance will be in a class of its own, sure STi and EVO can keep up with several grand less, but at the end they're not really in the same demograhic as the 135i. (Nor do bmw want to compete in that market).
So far, I don't think there's a car in the Entry-lvl luxury sports car market that can match 135i's performance...
Personally, I do not consider the new 3-er as "entry-level" since its gotten bigger/more luxuries/pricer thus closer to a 5-series (mid-level) in spirit. It really should've been named 4-series.
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