I'd go for the Lexus:
--Lexus reliability
--Larger engine, more hp, etc
--Lexus design: a 1996 Lexus still looks good, a 1996 3-series
doesn't. Lexus will look better in 5-10 years and be worth more.
--330i is already "old", replaced by 2007's 335i


... wait, the new 335i is a twin turbo V6?!?
http://www.rsportscars.com/eng/cars/bmw_335i.asp

holy hell man, go buy that! Forget the old 330i and IS350, the 335i
has 300hp and 300 ft-lbs for the same price! And it still gets good
gas mileage! 0 to 60 in 5.3 seconds, and if killing Mustang GTs isn't
enough for ya I'm sure you can increase the boost on those twin turbos
for a few bucks and kill a few 2007 Corvettes while you're at it!