I just bought a car that was described to me as a early M3. I knew it wasn't true but I bought the car anyway. The car does have M badges and ground effects. It also has Blue vinyl recaro racing interior. and the steering wheel is a 3-spoke leather wheel unlike the other 1980's 3 series cars I have seen. The car is in pretty good shape except for the fact that it has been dropped too low and the front tires rub in reverse. I have a few questions for any one that can help.
First, Is this truly an M series car?
Second, how much should I have paid for it?
Third, could someone please give me some specs on it and maybe a source for parts? it needs the front fenders replaced due to door dings.
Please help.

BMW's first production of the E30 M3 was in 1986.  It had the S14 engine which is an inline 4cyl and not straight 6.  Also the body has distinctive flares on the quarter panels, side skirts and has the 5-lug wheel pattern.  The engine is a dead give away...also the the M-Badges could be bought and stuck on anywhere.

if the 325e (or ETA) was in good condition, i would probably buy it for no more than $1500USD (being that old and with rust probs $1000USD)

Like ilir said, it is the sports package (my friend owns an 86 eta with 3 spoke steering, sports seats, shifter, even has gloves  )