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If you are looking for a track car then I would stay away from the Z4. However, with 5k in mods you can make a very fast and capable roadster.
IMO you have to change the suspension on the Z4 if you are going to mod it though. I went with KW Coilovers and they completely transformed the car. In a straight line I won't lose to much and the torque is very addictive. Unlike the M3 you get immediate power at 2500 rpm and it is a great dd car.
I wrecked my last car, 135i, and I test drove a few E9X M3's. I could not get past losing the torque that I had become used to in my 135i and I went to the N54 powered Z4.
It all depends on what you are looking for. A used E89 35i is hard to beat for the money.
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