BMW: 740 iL S to M3?, 740il, stiff suspension

Question
I recently inherited my dad's '97 740 iL S, and I am thinking about selling it for a sportier car, like the M3.  I really want the M3 evo/euro but I'm not sure if US residents are allowed to ship one over.  If I can't, should I stick with my 740, or get a US M3?  I want to upgrade the engine on either vehicle, depending on the information I get, and I really would value your opinion.  Also, the 740 has only 32,000 miles on it, and is in mint condition.  How much should I be selling the 740 for, and how much should the car you recomend cost?  Thanks again.

Answer
Ryan,
 There is not a strait-forward answer to your question, because most of it depends on what you like.

 The 740il and the M3 are VERY different cars.  The 740il is an extreme luxury car, much like a high-end Mercedes or Rolls Royce.  Its not really a "sporty" car.  They are large and heavy, and making one handle and perform is quite an undertaking.  Thats why you never see them in magazines in modified form.  The M3 on the other hand is a very well balanced car, setup for speed.  The ride quality is not as good as the 740il, because of the M3's stiff suspension.  There are always compromises, you cannot have a good-handling car, that rides smooth on the expressway.  The same is true in reverse, you cannot have a luxury car that rides smooth, yet takes corners like a go-kart.  

 Realistically you need to decide for yourself whether you want a sporty car, or one to ride around in luxury.  As far as fun-factor, the M3 wins hands down.  For hauling family/friends in style and comfort.. the 740il wins.  And both cars are priced pretty close (now that they are used).  New the 740il was a very expensive car, while the M3 topped out at around $45k-$50k when they were new.

 I did a quick browse on Autotrader.com for "1997 740il".  I did not find one with less than 55k miles on it, and that one was selling for $20k.  You should be able to pick up a 1997-1999 M3 for about the same price.  Make sure you buy a 2-door coupé, and get a manual transmission, these are the most desirable cars, and hold value the best.

 Good luck,
 Josh