Having driven an E36/E46 M3, and owning a 2008 335i, I can say that I was really excited when I heard BMW was returning to Forced Induction.

As far as vehicle dynamics go, there are the obvious differences, such as the suspension/handling and other things such as sound deadening, and throttle response.

The older M3 had SMG, which was said to be completely harsh and didn't quite show the complete potential in the M3. While SMG was faster than a human shifting, it still didn't satisfy many e-gearbox fanatics. The system was tweaked over time, and is now available in other models, whereas the newest M3 is equipped with DSG instead.

The ride in the 335 depends on the suspension and the wheels. I have to say though, the build quality is not nearly as good as older BMWs. I feel like while it looks great, the car has more rattles than ever, and doesn't always feel like a BMW. The throttle response is different, based on the Turbo lag, but in BMWs defense, there's nothing you can do about that, and they have tried their best by placing them sequentially.

Because of the turbo, the car has a torque curve that makes the driver feel the speed differently, making it feel much faster than the older M3.

The exhaust sounds beefy in the 335, whereas the older M3 sounded raspy.

Those are the major differences. Obviously things like automatic/manual and suspension packages will also make a big difference.
Source(s):
I have a 335


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