Faults:

Within the first month of ownership, airbag warning - scan said faulty rear seatbelt tensioners. Couldn't be cleared by normal scanners. Software update at Auckland City BMW fixed it.

Second problem was a triple warning - tyre pressure, DSC and something else, turned out to be a steering angle sensor. Fixed at reasonable cost again by BMW Auckland.

No problems since.

General Comments:

Japanese market used 320i, I chose specifically the older N46 2.0 engine instead of the N43 direct injection ones to avoid problems with the high-pressure injectors and fuel pump. Much of my driving is urban and traffic so couldn't justify getting a 325i, plus all the 6-cylinder models have an electric water pump that costs $1200 to replace. This car replaced a much-loved 2001 316ti 5-speed I kept for 9 years.

Good points: performance. Don't let anyone tell you the 320i automatic is slow. It's plenty fast, just not as swift as lighter or more powerful cars. But stomp on the gas and it will fly. It doesn't struggle with passengers or air conditioning.

I never thought I would love driving an automatic - I have waited in vain for a manual 320i to be available for a year. This car's gearbox I love because of what it DOESN'T do: creep up and down. I can hold my foot on the accelerator and it will maintain the speed very well, without creeping up or down. Just like a manual. The gear ratios are perfect, unlike other cars with automatics, I never find the car in the wrong gear even in sudden bends or hills. At motorway speeds, the engine ticks over at just 2,000 RPM, which is 6-cylinder territory, and doesn't hesitate to shift down one or two gears if I put my foot down. The gearbox overall is very intuitive and I never have to second-guess what the car is trying to do.

The seats are like my previous BMW hatch - no lumbar support, but excellent in comfort for long drives. Electric seat adjustment with memory are a novelty to me. Only trouble is it takes a long time if I wanted to recline the seatback, vs. the old lever.

Steering is well-weighted. Outside temperature gauge is very accurate, automatic climate control is excellent. Convenient Access (AKA full keyless entry and start) works very well. Several power outlets.

Cons: Noise transmitted by the run-flat tyres (no space for even a space saver spare, so can't use much cheaper but quieter tyres). The plastic vent louver atop the dash centre squeaks at times. A 5-series has a better-built interior for solidity.

No dipstick - only electronic display, which needs the car to warm up or be driven around 10km before it can read the level. Inconvenient. Just as well it is moderate with oil consumption - 2/3 litre so far over 7,000 km.

Stereo is rubbish - my 2001 BMW had a better speaker setup. While bass under the seat is excellent, only 4" mid-range in the doors, no tweeter. Replaced with much better Kicker 2-ways. Very difficult to upgrade anything with iDrive; I'd rather have a non-iDrive car so I could pull out the stereo and fit a Kenwood or something, but non-iDrive used 320is are rare. Hard drive takes all my music, but difficult to use on the go. I just use a cigar-lighter Bluetooth FM transmitter for iPhone playlists and taking phone calls, much easier.

Auto wiper setting is not sensitive enough, even after adjusting the knob.

Fuel consumption is not as good as my previous BMW, in urban and short drives. On the same cycle, my old car used to average 11 km/L, this car does only 9 km/L (11 L/100 km, 27 Imp MPG, 21 US MPG). Granted, this car is 200kg heavier and is an automatic. On the motorway, it makes up - can average 11.5 km/L (8.6 L/100, 34 UK MPG, 27 US MPG). But yeah, run the car cold and urban, it uses fuel like a 6-cylinder car.

The convex outside mirrors distort the image bad enough to make distance estimation difficult when reversing (worse than my old car which also had a similar mirror).