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The M2 will be the more fun car and probably not that much slower than RS3 from a roll. What gets me is this time of year with wet, cold, sometimes snowy, and always hilly Seattle... AWD really does have a place. I can drive significantly faster and under more control in my 235xi than I could in my prior E90 M3. So the driving environment can really affect what ends up being a pro or a con when comparing.
Thinking about the RS3 though, who knows when it will get to the US or how much it will cost. A starting price of $60k or higher would not surprise me and they will likely be more limited than the M2.
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