I used to have the saloon version and they are pretty good solid cars. Yes the rads go, but thats neither an expensive or difficult job to do (bleeding the coolant system isnt hard either), they munch wishbone bushes for fun seemingly and the brake pipes are a pain to do when they corrode (which they do) but from my experience I would say they are no more trouble than any other car of that age. They do handle quite well out of the box and are pretty easy to improve in that respect. The engine on the other hand is a proper dog that was tuned down due to German tax laws (IIRC the 328 had to fit in a certain bracket so they had to detune the 323 so it wouldnt be better, FWIW, the 323 does NOT use the same engine as the 325, its a completely different engine and the inlet mods mentioned earlier are not as simple as they sound). Basically, they dont breathe so dont like revving, have sod all low end torque to compensate, is mated to a gearbox with some of the worst ratio choices I have ever experienced and are basically not all that fast (sure it might be faster than the 8V mk2 I have at the moment but it never felt it even after a few mods and a dif ratio change and thats due to the size and composure of the thing) or economical (I certainly never saw anything like 35mpg in mine at any time). I think what Im trying to say is that they are actually a bloody good car, especially for the price but the engines a duffer. If you can find a 325 or 328 touring instead though, they are the ones to go for. Either that or a 325TDS and chip it.
the 325i an the 323i are the same engine in e36s
323i
2,494 cc (2.494 L; 152.2 cu in)
6cyl
DOHC 24V
Petrol
170 PS (125 kW; 168 hp) @5500 rpm
245 N·m (181 lb·ft) @3950 rpm
M52B25
8.0
231 km/h (144 mph)
1995–1998
325i
2,494 cc (2.494 L; 152.2 cu in)
6cyl
DOHC 24V
Petrol
192 PS (141 kW; 189 hp) @5900 rpm
245 N·m (181 lb·ft) @4700 rpm
245 N·m (181 lb·ft) @4200 rpm
M50B25
M50B25
8.0
7.5
233 km/h (145 mph)
1991–1993
1993–1995
DOHC engines were used across the range (except in entry level models, see table below), with VANOS variable valve timing introduced in 1993. The 2.5 L M50B25 used in the 325i models was replaced in 1996 with the 2.8 L M52B28, creating the 328 line. Another 2.5 L I6 engine, the M52B25, was reintroduced for 1998 but badged as the 323i rather than 325i