Buying Guide BMW E46 3 Series

Buy a BMW E46 from £2k. A grand tourer in almost every spec, the E46 is a bargain – so buy carefully. Words Sam Dawson. Photography Bauer Archive.

Seven steps to buying a BMW E46

Buying Guide Get yourself a decent BMW E46 3 Series while they’re still bargains

Exotic M3s aside, the E46-generation BMW 3 Series is currently at its nadir in terms of values. Look carefully, and you might even find one in acceptable condition for less than £1000. This means it’s the right time to buy one of these cars, albeit carefully. But look at what you’re getting. A front-engined, rear-driven range of coupés, cabriolets, saloons, hatchbacks and estates powered by a vast range of four- and six-cylinder, petrol and diesel engines. We haven’t covered the M3 in this guide – it’s a completely different beast – but there’s competition pedigree elsewhere in the range in the straight-six 320i, which contested touring-car championships.

The E46 marks a transition point for BMW. Designed in the US, it was the first 3 Series to jump up significantly in size compared to its predecessors. But with normally-aspirated petrol engines, H-pattern manual gearboxes and relatively minimal electronics, there’s a purity to it that later BMWs have lost. This guide pools the expertise of Travis Warrilow of Absolute BM, and Patrick Johnson of TWG Motorsport.

Which one to choose?

The Saloon was the first E46 to be launched, in December 1997, with the first cars registered in early 1998. All E46s had a choice of two styles of trim – M-prepared Sport, with sports seats, low-profile tyres, lowered suspension and spoilers, and luxury SE, with leather and walnut trim, softer suspension and higher-sidewall tyres. Confusingly, number codes did not always match engine displacements. The entry-level 318i had a 1.9-litre four, sixes began with the 2.o-litre 320i, the range also including the 2.5-litre 323i and the 2.8-litre 328i. Sole diesel option available was the 2.0-litre four-cylinder 320d.

‘A vast range of coupés, cabriolets, saloons, hatches and estates powered by a vast range of four- and six-cylinder, petrol and diesel engines’

Coupé, badged Ci, introduced in December 1998 with all engine options from 318 upwards. Touring five-door estate also added; all engine options available. An entry level car, the 316i, also joined the range for 1999. Confusingly, it had a detuned 103bhp version of the 318i’s 117bhp 1.9-litre four. At the other end of the range is the 330d, a 181bhp diesel straight-six. Convertible, also badged Ci, was released in late 1999 with the same engine options as the coupé.

The range was heavily overhauled throughout 2000-2001. Accompanying a mild stylistic refresh, the engine range was updated, creating more confusion. The 316’s 1.9 was replaced with a genuine 1.6-litre engine with 115bhp, while the 318’s 1.9 went in favour of a 143bhp 2.0-litre four. The 320 now had a 2.2-litre straight-six. The 323 was rebadged more aptly as the 325, while the 328 was replaced with the 3.0-litre straight-six 330. There was a new diesel too – the 2.0-litre four-cylinder 318d – while the 320td signalled a turbocharger, replacing the old 320d. Manual versions of all models had five-speed gearboxes.

Compact three-door hatch arrived in 2001, with different body panels, truncated rear end and a faster steering rack. Available in 316ti (1.6/1.8-litre), 318ti (2.0) and 325ti (2.5) petrol and 318td/320td 2.0 diesel forms. 330Ci Clubsport coupé was introduced in May 2002 as a baby M3. With less soundproofing, stiffer suspension, different skirts and spoilers and a short-shifting gear lever, it was also 20kg lighter than the standard 330Ci, and with 281bhp, it cleared 60mph in 6.6 seconds.

Further changes came for 2004: the 316i now had a 114bhp 1.8, while the 318i’s power was raised to 150bhp. 318d and 330d replaced with new turbocharged 318td and 330td. All models discontinued for 2006 when E90-family successors took the baton.

Bodywork

E46 bodyshells were galvanised, and generally resist corrosion well, with one exceptional area – the wheelarches. Front wheelarches are the most likely to bubble and rot, usually starting where the plastic wheelarch liners rub the paint on the back of the panel, but front wing panels are relatively easily replaced compared to other areas – budget £315 to fit and paint if it’s too far gone for a straightforward rust repair. Things get more serious at the back of the car.

Repairing rear wheelarch rust is a more involved job that can run to £500 a side. Also check the rear chassis subframe for rust – these can be replaced, but it’s an involved job that will cost at least £500 – and the floor for cracks where the subframe mounts. Also check the carpets for damp, especially in the front footwells on models with sunroofs. These drain down the A-pillars behind plastic covers. If the routes block with debris, this can result in water leaking into the cabin, soaking into the carpets and prompting corrosion in the floors.

Engines

The E46’s petrol engines are virtually unkillable, being long-lived, proven, reliable units by the time the E46 gained them. Their one weakness, however, is the cooling system. Thermostatic cooling fans can break, and expansion tanks leak, causing the radiator to fail and the engine to overheat. The thermostats themselves have been known to work erratically, causing the engine to run cool. A replacement radiator costs £50-£75, then factor in an hour’s labour to fit it.

Check the service history thoroughly. Water pump, drive belts, tensioners and breather pipes need changing every 50,000 miles to avoid trouble, something often forgotten if the previous owners have relied solely on the on-board service indicator and kept their servicing basic. A proper, full 50,000-mile service costs £325.

A misfire can usually be traced to a faulty coil pack. The original plastic-bodied pack was a weak spot that was usually replaced under warranty with a metalbodied unit. If it needs a new one or it’s still on its original, budget £30 and an hour’s labour.

While the petrol engines aren’t too much bother to live with, the diesels are less robust. The swirl flaps on the inlet manifold can break up, wrecking the engine. A blanking kit can be fitted for £300 to guard against this, but it will increase exhaust emissions. Exhaust gas recirculation valves need taking out and cleaning regularly – a simple job, but glitches can result in an MoT emissions fail. Diesel turbochargers are also prone to failure – and replacement can cost up to £1200 all-in.

Gearbox

While the ZF and Getrag manual gearboxes rarely give trouble, the General Motors-sourced automatics are a different story. They’re supposedly sealed for life, but in reality they need a fluid change at 100,000 miles. This isn’t part of the original BMW service schedule, and many owners will be unaware of it, or will put it off because it’s a tricky job that costs £275.

Suspension and tyres

Listen out for clonks from the front end, especially on hard-driven Sport models. Chances are it’s worn-out front suspension bushes and dampers – budget £100 per side to fix the former, £240 for the latter. Also make sure tyres match and are a reputable brand – anything less points to shoestring maintenance. E46s are also very sensitive to tyres and alignment – variance can lead to tramlining and dangerous wandering.

Windows and wipers

Make sure all electric windows go up and down smoothly, quietly and promptly. If there’s a clicking sound or the windows are sluggish, it’s the sign that the regulator is on its way out – they can also snap in cold weather leaving your window wide open. Budget £80 plus four hour’s labour to replace one.

On Tourings, check the speed of the rear windscreen wiper. If it’s slow or drags awkwardly across the screen, chances are the bearing in the glass panel itself is at fault. It’s very easy to strip, grease and reassemble – check it before opting for a new wiper motor.

Roof

If the powered hood of a convertible remains locked, accompanied by a whirring sound and a red light on the dashboard when the release button is pressed, plastic teeth on the header rail latch gear have probably worn and split from their motor spindles. Replacement with more robust metal-toothed gears is recommended. These cost just £30, although if the motor itself has failed that’ll swell to £350 – fitting involves removing seals and is therefore best left to convertible roof experts, although it shouldn’t take more than one to two hours’ labour to fit the parts.

‘Parts availability from BMW is excellent and at very reasonable prices, even down to interior items’

What to pay

• Away from the M3s, E46s are valued on condition rather than engine and specification. That said, scruffy running 316is, 318is, 318ds and 320ds can be had for as little as £500 in saloon form.
• £1500-£2000 is the going rate for a good saloon or estate.
• Decent coupés and convertibles start at £2000 for four-cylinder models, rising to £5000 for six-cylinders.
• The best dealer-sold 330Ci convertibles with full service history and low mileage can fetch as much as £8000 – also 330Ci Clubsport territory.

As a modern classic, the E46 BMW 3 Series is about as well-rounded as they come. While petrol engines are generally bombproof, diesels can be afflicted with a few common issues. Excellent manufacturer support and general ubiquity means interior parts are seldom an issue to source. There’s an E46 for everyone – but try to prioritise condition, mileage and history over spec and options.

Owning a BMW E46 3 Series

Alex Wainwright, Northamptonshire

‘It’s been in the family since new – firstly it was my grandfather-in-law’s, then my father-in-law’s, and for the last three years it’s been mine,’ says Alex Wainwright of his rare 330Cd coupé. ‘It’s a very unusual specification – the 330Cd was rare to start with, and this had every M Sport option ticked when it was new, including a very rare Williams-BMW F1 paint shade. ‘It’s difficult to get hold of genuine M Sport parts from any source other than BMW nowadays, and they can be very expensive. The connectors for the door mirrors, for example, corrode, taking the mirrors’ folding and dipping functions with them. I’ve been looking for replacements for two years – I refuse to pay BMW £280 for one! ‘Other than that though, they’re really easy to live with. I’ve taken it on holiday to Wales and enjoyed some great driving roads. It’s quick, rather than fast against the clock, but brisk enough to get you into trouble, especially because they’re very tyre-sensitive. I’ve always kept it on Michelin Pilot Sport 4Ss.’

Phil Bell, editor

‘I bought my 2002 325Ci Sport in 2015 – I wanted something that would cope with 24,000 miles a year without bankrupting me, would take a couple of mountain bikes on the roof yet was fun to drive. It’s scored brilliantly on all counts, never letting me down in the 95,000 miles I’ve covered and always making me smile when I wring out that M54 straight-six to 6000rpm, or lean on the sport suspension on a twisty road.

‘It was a two-owner, 67k-mile car with full BMW and then specialist history when I bought it, and I’ve kept that up with TWG ever since. In that time I’ve spent £6543 in total on servicing and wear and tear items (£3670), tyres (£1220) and repairs (£1614). The oil service interval is 15,000 miles, but I’ve always done additional changes myself at half that for peace of mind. Similarly the supposedly lifelong transmission oils – I have them done every 70k miles. ‘Parts availability from BMW is excellent and at very reasonable prices, even down to interior items.

‘Cosmetically, it’s stood up well – inside and out – with just the first signs of rust bubbling through one front wing where the wheelarch liner rubs the paint and traps water. ‘A quirk of the lower, stiffer Sport suspension and wide tyres is that they’re incredibly sensitive to tracking adjustment. Many tyre fitters seem incapable of getting it right, resulting in wildly squirrely steering on bumpy roads.’

Sponsored by Carole Nash insurance

Peter McIlvenny of specialist classic car insurer Carole Nash says, ‘The E46 is certainly on its way to becoming a classic, and with a wide selection of body styles there’s bound to be one for you. Values are still relatively low for a marque as highly respected as BMW with lowend examples from £1000 to around £15k for a mint convertible. Prices are likely to see a strong increase over the next 10 years and look a great investment that will give you plenty of fun along the way. But, as if often the case with premium brands, only cars that are in the best of shape with full service history will see true gains in this period. So, if you’re buying one now, buy the best you can afford and keep on top of the service history.’

Classic car insurance quotes: 0333 005 7541 or carolenash.com

2005 BMW 325i Convertible E46 £5495

Automatic M-Sport 325ci in metallic Silverstone Grey with Anthracite cloth interior with no rips, tears or worn bolsters. Long MoT, full history, 77,900 miles, recent service, maintained to high standard with BMW parts, drives beautifully. Nearly new Bridgestones all round. Power hood, aircon, climate control, cruise control, top of the range BWM entertainment system with Sat Nav, CD player, Bluetooth etc.