BMW 318i 2002 Problems

As a trade-in a 2002/3 318i would be worth $3000-$5000, if it was sold privately it would be worth $5000-$7000, so the cars you're looking at are in the right price range, and the mileage is about average. The 2.0-litre motor is perfectly fine for highway travel; it will happily cruise on the speed limit and have some left over for comfortable overtaking when needed.

My best advice to you is to not buy an old used BMW; they will only soak up whatever money you might have saved up. An ageing BMW with high mileage is a money pit; it will cost plenty to service and keep on the road, whether you use a dealer, which I would not recommend, or an independent mechanic. Buy a well-respected Japanese brand, such as a Toyota Corolla, Mitsubishi Lancer, or Mazda 3.

LIKE you, I prefer rear-wheel-drive cars for the way they drive and feel on the road. I'm also in favour of buying used BMWs and Mercedes-Benzes because you get to drive a better car than you might otherwise be able to afford, but they can be expensive to service and repair. For that reason I am loathe to recommend them. But I also agree that some of the cars coming from Japan look good, and I particularly like the new Lancer. I wouldn't be concerned about front-wheel drive at all, there's nothing wrong with the way they drive, handle, steer or brake.