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I was never a fan of the E36, the quality just isn't there. I'm partial to the E30, but the E46 is also a solid car. I can't comment on the engines you're looking at as we didn't have those in the US, and we never had a 120d. E30 or an E46 would be a good choice as a first BMW, they're both very DIY friendly. Do your homework on both, there's plenty of information out there. Good luck with whatever you choose.
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