Depends on what you want... I used to own an E36 325i but later changed it to an E34 520i. Reason... I needed the space. The E36 was just too small for me. Masuk a baby stroller into the boot and there is no space for our other barang. Try going shopping lidat. The E34, ah, that is different. Lots of space inside and in the boot.
Comfortwise, E34 wins hands down. And NVH is better too. My E36 was groaning and rattling at the doors and dashboard. The E34, silence. Me thinks the E34 is more rock solid.
Handlingwise, you will be surprised at how a big car like the E34 can handle so well. At speed, I find my E34 more stable. At the corners like going up Frasers, hee hee, surprised some Wiralutions. I could carry more speed into the corners and I had to brake because the cars in front were slow into the corners.
Ok, the downside... 500cc less and a heavier body. A SLOTH... but don't get me wrong, it is slow from standstill but when on the move, it can surprise you with its pace. Consumptionwise, slightly more than my E36... why? Gotta press the power pedal more!
The 525i would be preferable...
So it is down to what you want... of course I would not mind having both but then again, money don't on trees.