Simply put it's the best driver's car for the money.
When you have about $5k to spend I don't believe there are any better alternatives for the enthusiast minded.
The E36 has good handling, good balance, is rear wheel drive and available in manual transmission. It also has good looks and a nice interior. Aftermarket for the E36 is huge, replacement parts are all over the place and the car is easy to work on. Insurance is also fairly cheap.
Oh yeah and it's fun to drive too :)
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