Fifty years of the BMW 3 Series represent half a century of rich automotive history in one of the most fascinating segments of all: the mid-size class. But which generation of the 3 Series is the best? Opinions are divided, yet when it comes to the blend of design, powertrain and progress, much speaks in favour of the E46—ideally with a six-cylinder engine, and why not even the lesser-known 323i?
Since the 1970s, the BMW 3 Series has been the sporty and dynamic car of choice in the European mid-range segment. Back then, nobody used the word “premium”. Fifty years on, that’s changed. At the time, direct rivals came from brands like Ford, Opel and Audi. Genuine premium competition only emerged in the mid-1980s, when Mercedes entered the entry-level market with the 190. While the E30 3 Series has long become a sought-after classic, and many E36s now carry historic number plates, attention is turning to the E46. For many enthusiasts, it’s the most beautiful and stylistically confident 3 Series of all time. Though it may need a few more years before it’s officially a classic, now is the perfect time to snap one up—this mid-size model is destined to become a legend.
Compared to its immediate predecessor, the E36, the E46 stands out thanks to its design, avoiding the indifferent look of the earlier model. While the E36 had decent proportions, it appeared uninspired from the front and rear. The E46, introduced in 1998, plays in a league of its own. The same applies to its engine range, spanning from 1.6 to 3.2 litres—and even up to 4.0 litres in a limited GTR run. Those looking for a future classic can easily disregard several versions. The best-selling four-door saloon and estate models, especially the short-lived 3 Series Compact hatchback, are less desirable. The Compact, built to rival the Golf, lacked charm and the driving dynamics of its larger siblings. Those seeking strong residuals or future appreciation should focus on the coupé or convertible.
There’s little hope for the underpowered four-cylinder models like the 316i, 318i or even the 320i—despite the latter having a straight-six engine. An insider tip is the relatively unknown BMW 323i, built for a short period. Though lacking in popularity, its 2.5-litre straight-six with 170 PS offers the minimum for entertaining performance. From autumn 2000, the upgraded 320i replaced it with the same output. More solid bets for future classics include the 325i and 328i, with 192 PS from the M54 and 193 PS from the M52 engine respectively. Once-popular diesel variants are now largely irrelevant in the classic scene due to emissions restrictions and access limitations.
The best engine choice for the E46, whether coupé or convertible, is the 330, offering 231 PS and 300 Nm at 3,500 rpm. It accelerates to 100 km/h in under seven seconds and can reach 250 km/h with a manual gearbox. Early five-speed manuals can feel noisy and rev-happy, while post-2003 models with six-speed manuals offer better long-distance comfort and fuel efficiency. The five-speed automatic from ZF dulls the lively nature of the straight-six, although Sport mode helps somewhat. The three-litre six remains a fantastic all-rounder, whether paired with a manual or torque converter auto. In terms of powertrain and handling, neither Audi nor Mercedes had much to compete with in the early 2000s. Real-world consumption isn’t much higher than weaker six-cylinder variants. For coupé fans, the 330Ci was also available with all-wheel drive.
Highly sought after on the used market are the M3 models, which outshine even the rarer Alpina variants. The 3.2-litre S54 straight-six produces 343 PS and 365 Nm at 4,900 rpm. The M3 coupé is a phenomenal sports car with outstanding handling. Many owners have removed the 250 km/h speed limiter to keep pace with Porsche 911s and other rivals. Only the Alpina B3 and B3S, with 280 and 305 PS respectively, were officially faster, offering refined performance up to 270 km/h.
For those seeking a perfect sports coupé with investment potential, the M3 is a clear choice. The 330i suits the convertible better, aligning with the open-top character. If going for an M3, ensure it has the standard six-speed manual. The SMG sequential gearbox is ill-suited to the less powerful models and only enjoyable under full throttle in the M3. It’s standard in the M3 CSL, which now fetches over €80,000. Well-maintained standard M3 coupés with under 100,000 km start at €40,000.
There’s some debate about whether the 2001 facelift improved the E46. The coupé and convertible were refreshed in 2003. The kidney grille grew wider, indicators moved into the wings, and new bumpers featured smaller round fog lights. Front and rear lights were slightly redesigned, and LED rear lamps were introduced on the coupé and convertible. The interior saw little change over the near-decade-long production run, aside from a larger widescreen display. As with any future classic, more equipment means more desirability. Features like alloy wheels, xenon headlights, and part-electric leather seats weren’t always standard. Ideal kit includes leather sports seats, climate control, 18-inch wheels, heated seats and a decent sound system. A well-kept BMW 330i coupé with under 125,000 km and good spec starts at around €15,000. Convertibles cost little more. Prices are only heading one way—and that applies to saloons and estates too, which start from €10,000.
