BMW E46 3 Series: Best Value Generation?
Munich’s Everyday Sports Car
The BMW E46 (1998-2006) is considered by many as the last “true” 3 Series generation. Before electronics, turbochargers, and weight gain took over, the E46 offered pure driving pleasure in perfect harmony.
Technical Highlights
Engine Range
| Engine | Power | Torque | Character |
|---|---|---|---|
| 316i (N42) | 115 hp | 175 Nm | Economical |
| 318i (N42) | 143 hp | 200 Nm | Balanced |
| 320i (M54) | 170 hp | 210 Nm | Recommended |
| 325i (M54) | 192 hp | 245 Nm | Sweet Spot |
| 330i (M54) | 231 hp | 300 Nm | Sporty |
| M3 (S54) | 343 hp | 365 Nm | Legend |
The M54 inline-six (320i/325i/330i) is considered one of the best engines BMW ever built.
Current Market Situation
E46 Sedan Price Analysis
| Model | Average | Minimum | Maximum |
|---|---|---|---|
| 316i/318i | EUR 4,200 | EUR 1,500 | EUR 8,000 |
| 320i | EUR 5,500 | EUR 2,500 | EUR 10,000 |
| 325i | EUR 6,800 | EUR 3,000 | EUR 12,000 |
| 330i | EUR 8,500 | EUR 4,000 | EUR 15,000 |
| Total | EUR 7,056 | - | - |
Price Development
E46 prices show a stable upward trend:
- 2022: Average EUR 5,200
- 2023: Average EUR 5,800
- 2024: Average EUR 6,400
- 2025: Average EUR 7,056
- Trend: +8% annually
Why the E46 is the Best Choice
1. Perfect Balance
| Aspect | E36 (Predecessor) | E46 | E90 (Successor) |
|---|---|---|---|
| Weight | 1,250-1,400 kg | 1,350-1,450 kg | 1,420-1,530 kg |
| Steering feel | Direct | Perfect | Electric |
| Electronics | Minimal | Balanced | Complex |
| Design | Timeless | Classic | Modern |
| Price today | +15% vs. E46 | Reference | -20% vs. E46 |
The E46 offers the best balance of modern comfort and classic driving feel.
2. Value King
| Model | Price | HP | EUR/HP |
|---|---|---|---|
| E46 325i | EUR 6,800 | 192 | EUR 35.42 |
| E39 525i | EUR 6,500 | 192 | EUR 33.85 |
| E38 728i | EUR 12,500 | 193 | EUR 64.77 |
| Audi B6 A4 2.0 | EUR 5,800 | 130 | EUR 44.62 |
| Mercedes W210 E280 | EUR 6,200 | 204 | EUR 30.39 |
The E46 offers the best ratio of price to driving enjoyment.
3. Parts Availability
| Category | Availability | Price Level |
|---|---|---|
| Wear parts | Excellent | Affordable |
| Body parts | Very good | Moderate |
| Engine/Transmission | Good | Moderate |
| Electronics | Good | Variable |
| Performance parts | Outstanding | Competitive |
The large production numbers make parts affordable.
The Best E46 Versions
For Beginners: 320i
Average price: EUR 5,500
The ideal entry into the E46 world:
- M54B22 engine with 170 hp
- Low consumption (8-10 L/100km)
- All benefits of the six-cylinder
- Affordable insurance
For Enthusiasts: 330i
Average price: EUR 8,500
The sportiest variant below the M3:
- M54B30 with 231 hp
- 0-100 in 6.5 seconds
- Perfect power delivery
- Performance potential
For Collectors: M3 CSL
Average price: EUR 75,000+
The crown of the E46 range:
- S54 with 360 hp
- 110 kg lighter than M3
- Only 1,383 units built
- Strong appreciation
Buying Guide: Weak Points
Common Problems
Cooling System:
- Water pump (every 80-120,000 km)
- Expansion tank (cracking)
- Thermostat (often sticks)
- Repair costs: EUR 300-600
Suspension:
- Control arms (bushings wear)
- Shocks (after 100,000 km)
- Front sway bar links
- Repair costs: EUR 400-1,200
Body:
- Rear subframe mounts (rust!)
- Sills (especially on Touring)
- Rear wheel arches
- Repair costs: EUR 500-3,000
Model-Specific Problems
| Model | Weak Point | Cost Estimate |
|---|---|---|
| 316i/318i (N42) | Timing chain | EUR 1,500-2,500 |
| 320i-330i (M54) | Vanos seals | EUR 300-600 |
| 330d | Injectors | EUR 800-2,000 |
| M3 | Rod bearings | EUR 3,000-8,000 |
E46 Buying Checklist
Before Viewing
- Research vehicle history (service book!)
- Check model code and equipment
- Compare market price on CarPriceWeb
- Know common weak points
During Inspection
Engine:
- Watch cold start (running smooth?)
- Listen for Vanos rattle
- Check oil level and condition
- Coolant level and color
Suspension:
- Check play in control arms
- Shock test (bounce)
- Test straight-line tracking
- Listen for knocking noises
Body:
- Rear subframe mounts from below!
- Check sills with magnet
- Wheel arches for bubbling
- Trunk for moisture
Test Drive
- At least 30 minutes, warm and cold
- Shift through all gears
- Hard brake test
- Check air conditioning
Comparison: E46 vs. Competition
E46 325i vs. Audi B5 S4
| Aspect | E46 325i | B5 S4 |
|---|---|---|
| Price | EUR 6,800 | EUR 6,234 |
| Power | 192 hp | 265 hp |
| Drivetrain | RWD | AWD |
| Character | Balanced | Sporty-aggressive |
| Running costs | Lower | Higher |
| Reliability | Better | Turbo risk |
Verdict: E46 for pure joy, S4 for performance.
E46 330i vs. Mercedes W210 E280
| Aspect | E46 330i | W210 E280 |
|---|---|---|
| Price | EUR 8,500 | EUR 5,892 |
| Power | 231 hp | 204 hp |
| Comfort | Sporty | Luxurious |
| Driving dynamics | Superior | Comfort-oriented |
| Space | Compact | Spacious |
Verdict: E46 for driving fun, W210 for touring.
Investment Potential
Value Appreciation by Version
| Version | Current Trend | 5-Year Forecast |
|---|---|---|
| 316i/318i | Stable | +10-20% |
| 320i/325i | Slightly rising | +20-30% |
| 330i | Rising | +30-40% |
| M3 | Strongly rising | +40-60% |
| M3 CSL | Explosive | +60-100% |
Why Buy Now?
- Still affordable: Good 325i/330i under EUR 10,000
- Large selection: Many examples on market
- Parts support: Outstanding availability
- Community: Strong scene with knowledge sharing
Conclusion: The E46 Deserves Its Reputation
The BMW E46 offers:
- Perfect balance of driving fun and daily usability
- Legendary M54 six-cylinders
- Classic design without expiration date
- Affordable prices (still)
- Strong value stability
For anyone seeking a sporty, reliable, and characterful car, the E46 is the first choice. The golden era of driver-focused 3 Series - act now before prices rise further.
Price data from our current market analysis. More details on the E46 model page. As of: September 8, 2025