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I made the salvage mistake on an early year E46 M3. Bought from a private seller on craigslist for $11k which seemed like a good deal since clean ones were going 16-18k at the time.
It was the only car I've had that I was uncomfortable to drive. I never knew if it was going to start again when I came out of the grocery store or wherever I went. Had to bring to the shop for little things countless times, some bad wiring that was hard to see, etc.
In the end I ended up spending more than the 16k and should have just bought a better example of the car...
I'm sure you can occasionally find a gem, but in general it doesn't seem worth the potential headache to me.
Also like others have mentioned it's a total PITA to sell or if you go to trade it in you're going to get ridiculously low-balled.
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