If there is a car that perfectly exemplifies the engineering talents of the BMW M division, it is the M3. The third generation of the compact high performance E46 takes gold for its balance of power, performance and usability. Of course, these looks were born at a time when the M3 didn’t need to take the form of a more practical four-door car.

        Introduced in October 2000, the E46 featured a redesigned and upgraded 3.2-liter straight-six engine. It developed 343 horsepower, making it one of the most powerful naturally aspirated engines in the world. The M3 shipped to North America came with a detuned 333 horsepower engine, but we’ll focus on the European standard model in this guide.
        A six-speed manual is the only option for the E46 M3, although BMW offers an SMG (sequential manual transmission) to do away with the clutch pedal, if not the clutch. In February 2001, BMW also released a convertible version of the M3.
        The Ultimate M3 was launched in May 2003 alongside the CSL (Coupe Sport Leichtbau). It is 110 kg lighter than the standard coupe by ditching luxuries such as power-adjustable leather seats, air conditioning, sat-nav and a stereo system. As the name suggests, the CSL is more of a hardcore machine, with unique 19-inch Y-spoke alloy wheels shod in Michelin Pilot Sport Cup tires, making it adept on wet roads. Therefore, BMW requires CSL buyers to sign a waiver stating that they understand the nature of the tires.
        With an extra 17 hp, as well as a carbon fiber roof, front spoiler and rear diffuser, the CSL accelerates from 0 to 62 mph in a claimed 4.5 seconds compared to 5.1 seconds for the standard M3 Coupe, although many believe these figures are conservative. Both the manual and SMG transmissions offer the same acceleration figures, while the top speed is locked in at 155 mph, though as with launch times, real world testing shows 160 mph is more accurate.
        The latest cheer for 2005, the M3 CS, took the wheels, brakes, steering wheel, faster steering rack and upgraded traction control system from the CSL and combined them with the standard M3 Coupe. The big difference from the CS is that it can be bought with a standard six-speed manual transmission rather than the SMG transmission which is the only option on the CSL.
        Production of the E46 M3 ended in August 2006 when the last convertible rolled off the production line in Regensburg. The best M3s are now worth over £30,000 and the high mileage cars are £13,000. Convertibles tend to be the cheapest, starting at £10,000, which means the M3 is now as cheap as new.
        Engine: 3246 cc see inline six. Transmission: 6-speed manual (or sequential SMG II), rear-wheel drive Power (hp): 343 at 7900 rpm Torque (lb-ft): 269 at 4900 rpm: 1570 kg Mi per gallon: 23 .7 (official combined) CO2: 287 g/km Wheels: 18″ (f), 18″ (r) Tires: 225/45 (f), 255/40 (r) Release date: 2000-2006 New price: from £41,150 (2004) Now: From £11,000
        Note for reference: It is difficult to be absolutely sure about the data on the weight and power of the vehicle. For consistency, we use the same sources for all guides. We want the data we use to be right more often than wrong. We advise treating it as relative, not final.
        S54 six-cylinder engine with a capacity of 3,246 cc. Compared to its predecessor, the E36 M3, the E46 has new camshafts and a higher compression ratio from 11.3:1 to 11.5:1. A new Siemens-designed engine management system was also added, along with an electronically controlled throttle and M Dynamics Ride Control dual-mode offering Normal and Sport modes to alter throttle response.
        In addition, BMW has introduced new finger-shaped rocker arms to reduce engine friction and reduce reciprocating masses. The result is peak power output at a dizzying 7900rpm, just 100rpm before redline. The one-piece aluminum cylinder head contains 24 valves and a new oil scavenge pump ensures they stay lubricated under high side loads.
        The result of all this work was a naturally aspirated 343 horsepower engine, the most powerful engine per liter ever produced by BMW at the time, with the exception of the 6.1-liter V12 in the McLaren F1. Paired with this is a Getrag six-speed manual transmission that can be bought as standard with either a clutch pedal or an SMG (sequential manual transmission) that replaces the clutch pedal with paddle shifters and the shift lever shifts gears. In the SMG II box, the clutch is actuated by BMW’s electro-hydraulic drive logic, which offers 11 different modes and launch control.
        Both transmissions have the same gear ratios and the same internal components, and both send power to the rear wheels via an adjustable M limited-slip differential with differential lock. To further help the M3 control its dynamics, BMW comes standard with Dynamic Stability Control.
        Somewhat controversially, the M3 CSL is only available with the SMG gearbox, which is the same gearbox as the standard M3. However, DSC is modified to offer an M Track mode allowing the rear of the car to oversteer before intervening. To increase the power of the CSL from 17 hp. up to 360 hp, BMW has added carbon fiber intakes that suck in more air and give the E46 its loudest sound. The VANOS variable valve timing system has been changed and a lightweight exhaust manifold has been added with thinner and straighter pipes.
        Most CSLs live luxurious lives in the hands of enthusiastic enthusiasts, not least because the higher level of attention makes living with one of them even more of a commitment. However, all the same checks for the M3 Coupe apply to the CSL, so a potential buyer’s first port of call must be a service record to ensure that the initial break-in service is 1,200 miles. This includes oil changes, which have proven to be critical to your M3′s long-term health.
        The SMG hydraulic oil pump may fail, causing the transmission to go into neutral. Replacing the pump is expensive, but can also be misdiagnosed if the relay fails, and replacing it with a new one is easy and cheap. The clutch wears faster in SMG-equipped M3s, especially those that spend more time in the city. Clutch vibration when downshifting is a sure sign that it needs to be replaced. However, BMW also provided a software update that should have been added to any M3 SMG to reduce clutch wobble.
        As for the engine itself, it is a well-known reliable unit. Several early cars had crankshaft bearing failures, but it was assumed that all of these damaged cars would be serviced under warranty or have their engines replaced by BMW. Failure seems to happen at about 30,000 miles, so any early M3 with very low mileage should check their history files carefully.
        The VANOS dual variable valve timing system on the E46 M3 is more powerful than on the E36 version. However, the VANOS bolts can loosen after about 70,000 miles. If they crack, it could damage the engine, but BMW can provide stronger replacement bolts.
        No need to worry about a noisy rear diff if it purrs a little in tight corners at low speed. Changing to the correct Castrol oil will help, but this is a common feature of the M3. Alternators and coil packs have been known to fail, but both are easy to fix, and a competent home mechanic can fix both at a modest cost.
        The M3 uses a steel monocoque with a MacPherson strut front suspension and a multi-link rear suspension. For the M3, BMW widened the front and rear tracks compared to the standard 3 Series Coupé and installed unique batwing forged aluminum lower control arms with bearings and bushings designed specifically for the M.
        For the M3 convertible, a stronger rear subframe was added to carry larger axle shafts and struts to handle the extra power. BMW also used thicker anti-roll bars, measuring 26mm at the front and 21.5mm at the rear. In February 2002, M Racing struts were installed on the front suspension of the coupe and convertible.
        A set of 18″ alloy wheels is standard on the M3, with 19″ alloy wheels optional. Michelin Pilot Sport tires have 225/45 ZR18 front wheels and 255/40 ZR18 rear wheels, while the 19-inch wheels use 225/40 ZR19 and 255/35 ZR19 tires front and rear respectively. The CSL has unique 19-inch alloy wheels wrapped in 235/35 ZR19 front and 265/30 ZR19 Michelin Pilot Sport Cup tires at the rear.
        Behind the wheels are 325mm front and rear ventilated discs, and ABS is standard. While the standard M3 power rack and pinion required 3.2 turns to go from one lock to the next, CSL sped it up with a 14.5:1 ratio rack and pinion for 3.0 turns between stops.
        The CSL also benefits from stiffer suspension with one-turn shorter front springs and variable rate dampers. Thicker front and rear anti-roll bars, measuring 30.8mm and 22.5mm respectively, are complemented by aluminum rear suspension arms and stronger bushings all around. CSL uses larger 345mm front brake discs. It’s worth upgrading your brakes for track use, and Pagid Yellow composite pads are a good first step. AP Racing 335mm front discs and six-piston calipers are the next logical step in improving stopping power.
        Like all E46 3-Series, the M3′s front ball joints wear out and ruin the look of the car, but they’re easy to repair. Front wishbone bushings and rear trailing arm bushings may also need to be replaced on any vehicle with 60,000 miles or more. The rear coil springs and dampers will probably need to be replaced after 80,000 miles. Aftermarket suspension kits are readily available for the M3, but the cheap ones can tip the balance of ride and handling. Eibach or H&R springs are worth it, while AC Schnitzer kits are better but more expensive.
        The last thing to look for is cracked floors in the trunk. When something goes wrong with cars that are less than 10 years old, BMW replaces them under warranty so many of them won’t be as old as other M3s. But for cars that have problems (which are considered inevitable), they will be very expensive to repair. The price obviously depends on the salon.
        You don’t need us to tell you that the M3 is a little different than the standard 3 Series coupe. Those flared wheel arches that cover the wider front and rear tracks are hard to miss. The same can be said about the chrome side vents, aluminum hood with powerful bulges and a wider front grille. The front bumper is also more prominent in design, with a larger splitter, while the rear bumper matches the rear bumper with a small (by today’s standards) diffuser and neat quad tailpipes. Of course, the M3 also has unique rear-view mirrors.
        The CSL takes the design one step further with a carbon fiber roof, front splitter and rear diffuser. Its front bumper is shaped differently, with an air intake on the left side, while the composite trunk is shaped like a rear spoiler. Thanks to a diet that includes thinner rear glass, the CSL saves 110kg over the standard SMG M3. A small price to pay for the CSL’s extra directivity is reduced urban usability, due in large part to lower ground clearance. Cracks and scuffs are common when the front bumper gets close to a speed bump.
        In September 2001, BMW upgraded the xenon headlights to bi-xenon. The self-alignment of these lights can fail, although it is usually a simple relay rather than the entire light unit requiring replacement. In April 2003, LED taillights became standard equipment on the M3 range.
        The M3 is more resistant to rust than the standard 3 Series, mainly because the front wheel arches don’t have rubber seals on the arch liners that attract dirt and moisture. However, rear arches are known to corrode where they connect to the rear bumper, so check carefully. While doing so, also look for any signs of corrosion around the edges of the rear window.
        Door locks need to be lubricated every six months to avoid sticking. It is also important that your convertible top linkage be lubricated regularly at every service to keep it running smoothly. The fabric hood is well made and should work quickly and fit snugly. Any false ceiling that is not working and not installed properly is a sign of accident damage that has not been properly repaired.
        The M Design seats on the standard M3 are upholstered in Nappa leather and require regular cleaning and leather maintenance to keep them in top condition. Cracked leather is not uncommon, and the driver’s right side trim has also become wrinkled over time. The steering wheel is unique to the M3, and the gray instrument cluster dial includes a tachometer with orange segments that dim to indicate a safe rev limit when the engine warms up. The speedometer shows up to 180 miles per hour.
        Many M3s will come with a TV and satellite navigation system. Satellite navigation will require the latest CDs to provide accurate information, and televisions can become redundant with today’s digital signals. Looking at the center console, make sure the air conditioner is working properly. You also have to press each button to make sure all the electronics work, including the illuminated M shift knob for the manual transmission.
        The interior of the CSL differs significantly from the standard M3 as it omits the power-adjustable front seats in favor of deeper sport bucket seats trimmed in anthracite-colored reflective fabric and Amaretta synthetic suede. These seats do not have side airbags found in standard M3 models. At the rear, two separate seats are upholstered in the same fabric as the front seats, while the steering wheel is trimmed in Alcantara and has an M Track mode button, where you normally get the stereo controls.
        Going even further, the CSL also boasts lightweight composite door trim and a center console. BMW has done away with satellite navigation, any stereo or CD, air conditioning, sunroof or power seat adjustment for the CSL to keep weight down. Customers can order air conditioning.
        On all M3s, the interior door handles loosen and fall off, although this can be fixed under warranty. The light-active liquid of the rearview mirror will seep into the mirror, which can be seen at a glance. It’s expensive to replace from a BMW, so it’s worth a try. Also, make sure the door seal is tight and keeps out wind and noise.
        For many, the E46 generation has become the ultimate incarnation of the BMW M3. With a superb six-cylinder engine, relatively compact size and timeless looks, it has everything for the avid driver without looking overly arrogant. The fact that the E46 looks remarkably thin compared to the new G80 only adds to its long-term appeal. The turn of the century saw some truly great cars, and the M3 stands at the top of any of them.
        Despite the good response to modifications – you just have to look at any track paddock to see this – the most sought-after E46 M3 is the standard model these days. Not only because it’s such a well-executed package from the factory, but also because the M3 of this era is one of the most recognizable modern classics – and now the values ​​reflect that. The once decrepit price tag was incredibly close to £5,000 and the E46 was just one way out of there.
        Considering the tendency of the market to treat all new discovery even half as well, the M3′s new discovery is well deserved. Few cars combine such a superb engine and chassis so closely, and the E46 style will never go out of style. Also, if something like the E30 M3 felt a bit timid on the road, and the later turbocharged M3 instead of OTT, it’s fair to say that the E46 strikes a real sweet spot between modern and old school feel – and that might just be why everyone is demanding it. Now.
        Now that the wreck is worth over £10,000, it’s likely to be the less popular convertible, to be honest. Now you’re looking closer to £15,000 for a decent coupe and closer to £20,000 for a car with less than 100,000 miles on it. Some of the lowest mileage M3s on sale are asking around £40,000 – a price that was unheard of just a few years ago.
        Even if today’s E46 M3 buyers don’t get the same appreciation this decade, they can still experience one of the best M cars ever made for some hot cash. Availability is good, with PH alone having 37 cars at the time of writing; as cars are now recognized as legendary and cheap cars are thrown out, expect the numbers to hold steady as owners work to save the M3. Indeed, it makes one wonder why anyone would sell. But if they do, take a chance – it’s a BMW for a reason.
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       Pistonheads Holdco Limited, c/o Legalinx Limited, 3rd Floor, 207 Regent St, London W1B 3HH, United Kingdom
       Pistonheads Holdco Limited, c/o Legalinx Limited, 3rd Floor, 207 Regent St, London W1B 3HH, United Kingdom