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If you can afford the price difference, the M3 is more car for more money. More power, nicer interior, better handling, more exclusivity. You will find few people who can honestly claim that if somebody walked up to them and said "pick-one and it's yours" they'd pick a G35 over an M3.
Downside is not only up-front cost difference but since you're talking several years old you'll be looking at crazy expensive maintenance for the BMW too.
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