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To some extent I am in the same boat, I am considering an F10 M5 but have toyed with the idea of the F80 M3 also.
The way I see it, without having owned either is that the F10 M5 seems to provide a bigger bang for the buck, you seem to get a lot more car/performance for the same kinda of price if not just under what it might cost to buy a used M3.
Both cars would seat 5 people, but the M5 will do it in slightly more comfort I guess.
Both cars have a very similar 0-60 stock sprint it seems from reading, the M5 will come into its own on motorways when the numbers start notching up.
The M3 seems to provide people with a much more nimble point to point car for daily use, but the M5 isnt a slouch and people often seem to say the M5 shrinks around you as you drive it.
So I guess it boils down to budget, and whether you care for extra internal room, how important low speed agility is for you (seeing as low end speeds are very comparable from what I can gather), and how shouty you want the car to look (M5 being more under the radar)
For me, I am edging strongly towards the F10 M5 because like-for-like the 5 series offers more comfort/toys than an 3 series tends to, and I would expect the same applies to the Ms (eg headsup display being standard on an M5 but not on an M3 as an example?)
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