The M Coupes are an incredible bargain if you're looking for a little rocket. The '01 and '02 M Coupes are available for invoice or less in dealer lots. They're done making them, so if you're interested in a new one at all, you should move on it now to get the color combination that you want.
I own one and it's a whole lot of fun to drive -- I can't imagine anyone telling you otherwise. Other positive points are:
1) Very rare -- everyone will know you from your car
2) Fits like a glove every time.
2) Surprisingly useful cargo area (look at this thread from
Roadfly)
3) A wide range of accessories available because it's still a Z3, after all.
4) Faster than the M3 with the same engine.
Some down sides to the M Coupe?
1) Very rare -- everyone will know you from your car
2) Likely to be keyed rather than stolen or broken into. Causes paranoia.
3) Only two seats require planning before you head out.
4) Everyone wants to call it an M3 Coupe ("No, ma'am, just 'M.'")
5) Lack of luxury features. You don't have any of the options that you might be used to in other BMWs: xenons lamps, climate control, navigation, dipping rear mirrors, 97-way power seats, rain-sensing wipers, and OBC. A big gripe is the lack of a standard keyless entry! On the plus side, it does have leather seats, cold weather package, and HK system standard. Many consider its lack of features to be a blessing, but it's something to consider regardless.
6) Windows don't go all the way down!
7) Considered ugly by many.
Of course, I love my car in the end and I'm willing to deal with any issues. It's not going to do everything and go everywhere, but on a warm spring day with a nice stretch of road, it makes it all worth it.
You could probably pick up a '99 M Coupe right now in the mid 20s and get rid of it by winter if you're not interested in it anymore without losing much money. To address the point of a new model coming out: BMW seems to be splitting the coupe from the roadster. The Z4 will be introduced at the end of the year and go on sale next spring as an '04 model. The Z5 will be introduced sometime next year and go on sale the following year as an '05 model, so there shouldn't be an abnormal depreciation hit when the Z4 gets introduced.
The X5 is a great car: goes everywhere, does everything, is surprisingly quick, and is super-practical. The X5 is definitely the safer choice.
