This has been covered so much in reviews and forums. The Z is a more focused sports car and the 1 is a nicer car to drive around in terms of ride qualities in luxury. Pick which benefit you enjoy more.
As for status the 1 was created to be a more focused BMW, which appeals to the old school fans such as myself, who miss the days of the old Bimmers.
For me, the hype was a bit of a letdown on the 1. It only comes in at about 100 pounds less than a 3 and isn't that much cheaper. The 1 is going to be redone soon and the rumor is a truly sports car focused "m1" lightweight, turbo charged 4. That could be the first captivating BMW in awhile for me.
Until then Z is the more focused sports car of the two
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