BMW M3 (E46) buying guide

BMW began with the coupe in October 2000. RAC Drive dates the convertible to March 2001 and the SMG option to July 2001. There was no sedan. Coupe production finished in May 2006 and the convertible followed in November 2006, which made 2006 the last US year.

Changes in between were small. BMWBlog says LED taillights arrived in mid-2003 model year and were the only notable facelift change, along with new colors. The bigger split is the gearbox. Hypercars calls the manual coupe the most desirable configuration, and Road & Track and Supercars.net both report buyers favoring the manual because the SMG is clunky at low to moderate speeds, less involving and expensive to fix.

The Competition Package (ZCP) brings 19-inch wheels, a quicker steering rack, bigger drilled front brakes and M Track Mode. BMWBlog says it is the only route to Interlagos Blue Metallic and that Comp cars often command a premium, but its upgrades are fairly easy to add to a non-Comp car. So if a plain car has the better history, buy it and fit the parts you want. The same source says slicktop cars appeal more to some buyers than sunroof cars, which carry about 40 extra pounds.

Think twice about the convertible if you plan track days. Road & Track says it has less rigidity and no fixed roll bar. RAC Drive suggests a low-mileage CS is probably the most satisfying version, and M3 CS listings are tracked separately. Each body style has its own market page: coupes and convertibles. If you are weighing other generations, our E36 M3 guide and E90, E92, E93 M3 guide are the neighbors.

Rod bearing failure

On 2001-2003 cars the rod bearings were incorrectly sized, which led to oiling problems and premature engine failure, and BMW issued a recall. Budget around $1,500 for the bearing work, per MotorBiscuit.

Rear subframe cracking

Road & Track, Supercars.net and BMWBlog all report that the rear subframe mounting points can crack or tear. Every E46 M3 year can be affected.

SMG hydraulic pump

Unresponsive paddles or slow shifting point to the SMG pump, which is known to fail and costs a lot to replace.

VANOS failure

A failing VANOS variable valve timing system shows up as rough idle, power loss, hesitant acceleration and long cranking when cold.

Water pump and cooling

Failing water pumps are part of the E46's cooling issues, and they can go as early as 60,000 miles. A car near or past that mileage with no pump record needs a replacement allowed for.

Differential and small parts

Classic & Sports Car reports that the limited-slip differential can graunch in tight turns. Auto-dimming mirror fluid can leak and stain trim, and front window regulators can fail.

MotorBiscuit puts rod bearing work at around $1,500 and subframe bushing repair at around $2,000. Hypercars calls subframe reinforcement a preventive repair at $2K-$4K. The S54 also takes 10W-60 oil, which Road & Track calls expensive.

Sources put a VANOS rebuild at $500-$800 in one place and about £850 (a UK figure) in another, and a rebuilt unit at around $1800. If the car is an SMG, Supercars.net says a gearbox replacement costs around $7,000, while BMWBlog and Classic & Sports Car note that a factory-look manual conversion is possible, at about £3500 from one UK specialist.

RAC Drive lists a clutch assembly at around £275 and front brake pads at around £95, both UK figures.

Buy a manual coupe with full service history, proof of rod bearing work if it is a 2001-2003 car, and a documented subframe inspection or reinforcement. Hypercars rates that configuration the most desirable, and the SMG's reputation for costly repairs gives the manual an easy case. Take a Competition Package car only if its history is as good as a plain car's, since the upgrades can be added later.

Skip any SMG car with a weak pump history unless you accept a gearbox bill of around $7,000 or a manual conversion. Skip any car, whatever its gearbox, whose subframe mounts nobody has looked at.