I am no expert to car tuning. But to me, as some brudders said, there is a reason for the $40k difference. Its like a computer. would u buy the stock desktop with all the specs u want? or would u go to Sim Lim square n customise and mod one. Sometimes things u put in are incompatible. Anyway my good old sim lim square PC kaput liao in jusy 12 months.
The 325i 's extra power had been tested and tested as a product before its sold. if u mod a 323 to a 325, is it tested? Not to mention that u may in the end have some minimal savings assuming u can get that 40 bhp afterall, but does the damn modded car drives properly like the 325i...well I dont know and I will not take the risk. For all you know if it only cost u say $20k, it may well be $20k down the toilet bowl. Just 2 cts.