I have both and I'd skip the e36 and go for the e46. You should easily be able to find one within your listed budget. If your budget was half of what you listed, then I'd recommend an e36.
On second thought, if you think they are likely to wreck in their first year (like most teens will), then get an e36 to start...
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Lane
'93 RS America | '03 M3 | '02 325iT | '98 328is | '15 i3 REX
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