Go with whatever your cash will buy you outright. (Thinking used corolla or civic.) Our 328i replaced our 1994 Corolla. Still have the Corolla with around 158,000 miles on it. It costs us about $300/yr in unscheduled maintenance. The interior is perfect. The exterior a few nicks and dings, but overall it looks quite nice for it's age. With your budget, I'm guessing you can pick up a late 90's from a PP that's been very well taken care of.
In 10 years buy a custom ordered 3 series. My $.02.
2011 328i E90/TiAg/Beige Dakota/6MT/ZVP/Split Folding Rear Seats and that's it!