I don't understand how you factor into the equation here. Are you some sort of vehicle consultant at a high-school?
I dont know where do you live, but if you live im usa tell him to not buy it. The only proper E36 M3 is euro 3.2. It is even faster than E46 M3.
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Can you give me some rough estimates on running costs of an M3 E36/E46, reason being I was seriously entertaining the idea of one of these two. Either a well kept E36 or a moderate to high mileage E46 as a starter car. When/If you have time.
IIRC you're looking at around 900 to 1200 dollars for a set of tyres. oil changes will run you about 100 bucks (or more depending what kind of oil you use and how hard you plan to drive it).
Hey he's probably getting it because of high school girls, so I dont think it would be his problem. LOL