As both Gluckman and Floraday stated, the 128i is the 1 (series) to get. Scanning the two window stickers, a base 128i saves you over $6000 compared to a base 135i. Sure, you give up standard features like xenon headlights, aero kit, 18-inch wheels, and big brakes but you still get a very quick and rewarding car to drive. Plus, the EPA mileage estimates are 18/28 mpg for the 128i compared to 17/25 mpg for the 135i.
I also agree that the 128i is better to drive. It still is upset a bit too much by choppy Michigan roads but it feels far more suited for real-world conditions than does the 135i. It rides better and shrugs off camber and road surface changes.
Don't get me wrong, I love the speed of the 135i but it is hard to beat the pure, smooth power of the normally aspirated BMW inline six. Just make sure you pass on the optional $500 wood interior trim, it looks out of place in a 1-series.
Marc Noordeloos, Road Test Editor