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I toiled with this decision as well. I really like the 550i sport rims. When you start adding a lot of content to the 535i, it starts pushing into 550i territory and the price difference starts to narrow.
Pro's:
-Beefy engine
-Bragging Rights
-Cooler rims and tail pipes
Con's:
-Beefy engine (cost,maintenance,gas)
-More expensive without REALLY getting more car
-Lower residual values
I had to rationalize this from my last purchase. I went for the v8 on my last car. It's nice to have 400hp under the bonnet. But I never use it. I mostly sit in traffic. Oil myself to work and back, and occasionally on the freeway on-ramp some Civic tries to pass me at the light. But it's few and far between. In my mind I'm on the Nürburgring, in reality, Costco parking lot, loading 5 gallon drum of mayo into the trunk. That's why I went with the 535i. More content, less engine (BTW the engine is more power than you'll ever need anyway, unless you last name is Schumacher). Seriously where in the USA can you drive 100+ safely and legally? The 535i can do this in it's sleep.
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