So yup, I did what everyone said we should do... We sold the BMW.
Unfortunately, we didn't go for the E90.
Neither did we go for any German sedan.
We went for the Honda Jazz!
Before everyone piles up on top of me, I'll say now that there's a valid reason for this. The high cost of maintenance, along with high fuel consumption and expensive servicing took a toll on my sister's salary.

She felt she wasn't ready for a BMW yet, so she settled for something more practical, frugal and cheap. Make no mistake about it - I prefer the BMW over the Honda anyday - but it's my sister's car anyway, and it's her decision. So that's that. Heh.
For the benefit of those who don't know, the Jazz is Honda's award-winning supermini:
Thanks everyone for your advice, and let's bid farewell to the faithful E46.
Hopefully when my sis gets a new job she'll venture back into BMW again.
