So, just over $1k, that's a good price. All the 318's out here are at least 2.5k, with most of them closer to 5k. Did you see the grassroots article on their 318is buildup? I realize that theirs is an e-30, but its got the same engine. Might be worth keeping an eye on, but sounds like their next step is to install a DASC It seems this engine gets no respect when it's naturally asperated.
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In all fairness I bought it at auction with a blown head gasket for $900 plus auction fees but I have seen several running examples with high miles for around $2k... This car ( most e36 318s ) was less than most of the Acura 94-94 Integra donors I found

This is a pic after it hit the shop ( six hours later )