If I was You I would definately use E34 M5 touring as my daily car But beeing more realistic I would buy E34 525TDS touring with A/C and w/o leather seats. The car should easily take care of Your children and Your wife would be rather content because of pretty big space around there inside. It is not a sport car, but it acts very nice for it's weight. And also parts are cheap and it doesn't brake down easily.If I had 2 children -> I would buy E34 525TDS touring or E39 530d touring for sure. E36 touring is not really big enough to keep You comfortable enough.That is what I think...