The 325i is raced in the SpecE30 racing series and ... It also makes the far better daily driver. Why? Well, the M20 engine combines incredible sound and smoothness with unfailing reliability.

the 325e uses a stroked 2.7-liter version of the M20 six-cylinder, designed to offer lots more low-end torque than the smaller 2.5-liter six in the 325i, but at the cost of lower max revs and ...

If this is the original engine, it's a 2.5-liter SOHC M20 rated at 47 more horsepower than the same-year 2.7 eta motor… and six fewer foot-pounds. The MSRP of the 325i/325iS for '87 was $26,990 ...