If you’re buying a vehicle in 2025, statistics suggest you’re going for an SUV. And a big one at that. Small, luxury sedans like the BMW M340i are a dying breed. But they really shouldn’t be.
I’ve made this argument before with a Genesis G80. And now I’m exploring how embracing the sedan could be your gateway into the world of German luxury. It’s the opposite of what the average person may be thinking of buying, but here’s why it’s worth strongly considering.
Entry level, with a twist

BMWs aren’t inexpensive. Pick one of the brand’s more powerful or prestigious models, slap on a few optional extras, and you’ll pay well into six figures once the paperwork is signed. That’s not the case with the 3 series, which starts at around $47,000. That’s less than you’ll pay for a Nissan Murano.
If you opt for the “M” package and get the M340i, you’ll still pay less than $60,000 for a base model. Even if you slap on a bunch of optional extras (and that’s traditionally how BMW will “get you”), you’re still looking at less than $70,000 for a small, sporty, fully specced out, German luxury sedan.
And you should strongly consider the M package. The standard 3 Series will get you from A to B quite comfortably. But you need to drift into the world of BMW’s Motorsport division to truly experience the best the brand has to offer. It’s not a “proper” M; you can’t go around telling people you’re driving an M3, but you will get a lot for the extra few grand.
With 386 horsepower, 398 lb-ft of torque, and a 0-60 time of just over four seconds, the 2025 M340i is roughly on par with a “proper” M3 from around a decade ago. However, the mild hybrid powertrain means you’re likely to spend a lot less on fuel. BMW claims 29 MPG, and I got a little bit more than that — though I did spend a lot of the loan period racking up the highway miles.
It has all the grip you’ll need

Although you’ll part with an extra $2,000 or so for the all-wheel-drive version of the M340i, that money is again well spent. BMW’s xDrive is one of the best AWD systems on the planet. In addition to knocking around half a second off the 0-60 time, it also massively increases the vehicle’s practicality.
I didn’t test this in winter, so I can’t comment on how it handles an Upstate New York snowstorm. But I was fortunate enough to get a good amount of torrential rain during the testing period, and the M340i handled it all with ease.
It also pays dividends when you find yourself on winding backroads. The BMW’s low profile and relatively light weight (even with the batteries from the mild hybrid system included) give you a lot of confidence in those curves and corners. This really ramps up the fun factor, which is one of the best things about this vehicle.
It just puts a bit of joy back into driving

As part of the job, I end up behind the wheel of a lot of SUVs, trucks, and other large vehicles. I even drove a stretch in a semi once, and the experience wasn’t too far removed from some larger non-commercial vehicles you’ll spot on the road these days. I understand their purpose, and I can see why people feel compelled to buy them. But if you think any three-row SUV actually offers a driving experience comparable to a smaller car, you’ve forgotten what a smaller car actually feels like.
Take a well-engineered sedan like the M340i, and it’s almost like being in an entirely different world. The handling, weight, balance, and throttle response are all on another level. It brings joy back to driving that a lot of us have forgotten. You won’t always experience this, because a lot of the time that people spend behind the wheel is pretty serious. You’re in a residential area or on a straight and boring highway. You’re dropping your grandma off at lunch or picking up the kids from school.
But every now and then, you’ll find yourself alone and staring down a long and winding bit of quiet country road. When those times come, you don’t want to be in something sensible, or large, or unwieldy. You want to be in something fast, agile, sporty, and exciting. The M340i ticks all of those boxes and does it for what is a pretty reasonable price. So buy one, make use of the reasonable amount of trunk space, and acceptable rear leg room when dealing with the sensible stuff. Then plan a more scenic route back so you can slap it in sport mode and experience it at its absolute best.