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I guess the debate about "luxury" vs. performance vs. every day car is relative to individual choice. A Subaru Impreza WRX or a Lotus Elise may not have the comfort features of a Lexus ES or even a high-end Toyota Camry Solara but they cost more and have better performance. You can take a Lexus IS350 to an Auto Cross or drift in a muddy road with it but most people probably don't buy with that in mind. A Subaru Impreza WRX or a BMW M3 on the other hand would look quiet appropriate for that.

So to me higher price doesn't necessarily translate to luxury which I thought the poster was trying to point to with regards to a BMW 3-series. And as other posters pointed out the 3-series is neither more expensive nor the best of the best in its category (when compared to other German brands) but still a better performance choice than many other common brands I pointed out. Probably a BMW 1-series hatchback would be more practical for crowded city drive but in general the 3-series is the most common and popular of the BMW brand and resides in the relatively lower echelon. So entry-level performance sportscar would more fit the description.