Bought a M3 4 door manual new in 1997 and finally ready to move on? What's the closest new BMW to that? M235i? What would you get if you basically want a new '97 M3? M3? 340i? M235i? M2?
Well, it really depends on what it is that you loved about your e36 M3. Chances are you are going to be a bit disappointed with anything on offer in some aspects, but blown away in others. The M235i takes another couple of seconds off the 0-60, and even manages a few mpg better. It will be quieter and more comfortable, and if you spec it with a LSD and those michelin super sport tires you will probably think it handles as good or better than the e36. The stock exhaust sounds good, but if you want something a bit more pronounced you could get the M Performance exhaust, but it is noticeably louder than a stock e36 (though I can only compare against my old 95 325is I sold 3 years ago, and a 20 minute test drive in the M235i with sport exhaust). To be honest though, I think a manual slicktop 228i is going to be the future e36 M3 Coupe. Every review I have read says that the 228i is more eager than the M235i on turn in, and I believe that is even without the Michelin Super Sport tires. This is because the engine is smaller, so there is less weight out over the front axle. For the $8k or so you save on the 228i, a few suspension and brake mods could go a long way into making the 228i the superior handling car. The M2 seems like it is pulling out some sound deadening to save weight, so it might gain back some engine and road noise and in that aspect could be a bit closer to what you are used to in an e36. That said, weight is often the enemy, and as the Tuner GP has shown time and time again, a well tuned e36 can keep up with the best of them. This year Amir's 270hp e36 M3 sedan was just 2.5 seconds (~3%) off the winning lap time of Platte Forme's 550hp F80 M3. And GSR's slightly tuned 335hp 228i was just another 0.5 second behind the e36, beating out EAS's 560hp F82 M4 by 0.4 seconds - https://www.youtube.com/watch?v=00lkX68oZ6A
Also this video that just came out yesterday, showing a ~25 year old nearly stock e30 wagon with a spec-e30 suspension set-up nearly matching the lap time of a brand new 2016 340i - https://www.youtube.com/watch?v=iBkObmAPvs0 So it really just depends on what you are looking for. Newer is usually better, but not necessarily by as much as you might think.
