Likes
- The right examples are likely to be future classics.
- Excellent enthusiasts car (mechanically simple and affordable to work on).
- In terms of build quality and reliability, arguably some of BMWs best work.
- Huge support network and community.
In the Australian car landscape, the BMW E46 3 Series has well and truly earned its place as a benchmark, not just within the compact executive category, but as one of the most well-rounded cars of its era. Launched locally in 1998 and sold through to 2006, the E46 was the fourth generation of BMW’s iconic 3 Series and arrived in sedan form initially, with the coupe and convertible joining the range in 1999, followed by the wagon (or Touring, as BMW calls it) in 2000, and eventually the three-door hatchback Compact arriving in 2001. Across this range, BMW Australia offered a generous mix of models, trim specs and drivetrain options, with the E46 carving out a solid reputation for being everything from a comfortable daily driver to a genuine performance machine.
In typical BMW fashion, the E46 was rear-wheel drive, with a near 50:50 weight distribution, and offered with a range of naturally aspirated inline-four and inline-six engines, some of the smoothest and most characterful engines of the time. Transmission choices included five-speed and six-speed manuals, as well as four- and five-speed automatics depending on the model and year. The manuals in particular are a highlight, and are a big reason the E46 is still so beloved by enthusiasts today. Whether it’s a basic 318i or a higher-spec 330Ci, these cars maintained the DNA of earlier 3 Series generations, excellent dynamics, driver-focused interiors, and an understated, timeless design.
Throughout its life, the E46 received a number of mid-cycle updates, the most notable arriving in 2002. This facelift brought in subtle styling changes including updated headlights, taillights and bumpers across the range, a refinement of the interior layout, and improvements to standard features. Some models gained electronic stability control (DSC), revised suspension tuning, and incremental updates to infotainment and trim materials. In Australia, trim levels included the base model, Executive, and Sport variants, with the latter adding lowered suspension, unique alloy wheels, sports seats and other minor upgrades. Individual options were plentiful too, with some higher-end cars packing sat-nav, sunroofs, upgraded audio systems and even factory-fitted body kits.
While the E46 3 Series was positioned as the entry point into the BMW range at the time, sitting below the 5 Series and 7 Series, it never felt like a compromise. It offered a proper BMW experience at a relatively attainable price and still does today. But given these cars are now pushing 20 to 25 years old, the smartest way to approach buying one is with an enthusiast’s mindset. Thankfully, the E46 is a fantastic enthusiast car, it’s relatively simple mechanically, has a massive global support network, a huge aftermarket scene, and parts are widely available and often surprisingly affordable. Plus, it’s a car that rewards good maintenance and careful ownership with an experience that’s still incredibly enjoyable today.
Despite not being perfect, we’ll get to the common issues in the “What Goes Wrong” section below, the E46 is a reminder of how brilliant BMW was during this era. It manages to balance daily usability with proper rear-wheel-drive driving dynamics, and in the right spec, particularly in coupe or Touring body styles, it still looks fantastic. It also offers a legitimate stepping stone to performance driving. While the flagship M3 and ultra-rare CSL models deserve their own spotlight (and they absolutely will get their own cheat sheet), even the regular E46 330i or 325i can provide serious performance thrills without the eye-watering costs associated with full-blown M cars.
Interestingly, values for good E46 examples are holding up remarkably well on the used market. Much like the E30 and E36 before it, the E46 is on track to become a future classic – particularly clean, low-kilometre, original cars. The key is to avoid overly modified or neglected examples, and to focus on those that have a strong service history and minimal wear. If the E46’s legacy continues on its current trajectory, these could soon become not just great enthusiast buys, but savvy investments as well.
Exterior:
Exterior:
Interior:
Mechanically:
The 4-Cylinders:
The 6-Cylinders:
The Diesels:
Suspension:
Australian model range:
Sedan
318i (1998–2001)
• 1.9L petrol I4 (M43 TUB19)
• 4-speed auto, 5-speed manual (RWD)
• 87 kW (117 hp) / 180 Nm (133 lb-ft)
320i (2000–2001)
• 2.2L petrol I6 (M54 B22)
• 5-speed auto, 5-speed manual
• 125 kW (168 hp) / 210 Nm (155 lb-ft)
323i (1998–2000)
• 2.5L petrol I6 (M52 TUB25)
• 5-speed auto, 5-speed manual
• 125 kW (168 hp) / 245 Nm (181 lb-ft)
325i (2000–2001)
• 2.5L petrol I6 (M54 B25)
• 5-speed auto, 5-speed manual
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
328i (1998–2000)
• 2.8L petrol I6 (M52 TUB28)
• 5-speed auto
• 142 kW (190 hp) / 280 Nm (207 lb-ft)
330i (2000–2001)
• 3.0L petrol I6 (M54 B30)
• 5-speed auto
• 170 kW (228 hp) / 300 Nm (221 lb-ft)
318i (2001–2005)
• 2.0L petrol I4 (N42 B20)
• 5-speed manual, 5-speed auto
• 105 kW (141 hp) / 200 Nm (148 lb-ft)
320i (2001–2005)
• 2.2L petrol I6 (M54 B22)
• 5-speed manual, 5-speed auto
• 125 kW (168 hp) / 210 Nm (155 lb-ft)
325i (2001–2005)
• 2.5L petrol I6 (M54 B25)
• 5-speed manual, 5-speed auto, 6-speed SMG
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
330i (2001–2005)
• 3.0L petrol I6 (M54 B30)
• 5-speed auto
• 170 kW (228 hp) / 300 Nm (221 lb-ft)
Coupe
320Ci (2000–2003)
• 2.2L petrol I6 (M54 B22)
• 5-speed manual, 5-speed auto
• 125 kW (168 hp) / 210 Nm (155 lb-ft)
323Ci (1999–2000)
• 2.5L petrol I6 (M52 TUB25)
• 5-speed manual, 5-speed auto
• 125 kW (168 hp) / 245 Nm (181 lb-ft)
325Ci (2000–2003)
• 2.5L petrol I6 (M54 B25)
• 5-speed manual, 5-speed auto
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
328Ci (1999–2000)
• 2.8L petrol I6 (M52 TUB28)
• 5-speed manual, 5-speed auto
• 142 kW (190 hp) / 280 Nm (207 lb-ft)
330Ci (2000–2003)
• 3.0L petrol I6 (M54 B30)
• 5-speed manual, 5-speed auto
• 170 kW (228 hp) / 300 Nm (221 lb-ft)
320Ci (2003–2006)
• 2.2L petrol I6 (M54 B22)
• 5-speed manual, 5-speed auto
• 125 kW (168 hp) / 210 Nm (155 lb-ft)
325Ci (2003–2006)
• 2.5L petrol I6 (M54 B25)
• 5-speed manual, 5-speed auto, 6-speed SMG
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
330Ci (2003–2006)
• 3.0L petrol I6 (M54 B30)
• 6-speed manual, 5-speed auto, 6-speed SMG
• 170 kW (228 hp) / 300 Nm (221 lb-ft)
Touring
320i Touring (2001–2005)
• 2.2L petrol I6 (M54 B22)
• 5-speed manual, 5-speed auto
• 125 kW (168 hp) / 210 Nm (155 lb-ft)
Convertible
330Ci (2000–2003)
• 3.0L petrol I6 (M54 B30)
• 5-speed manual, 5-speed auto
• 170 kW (228 hp) / 300 Nm (221 lb-ft)
325Ci (2004–2006)
• 2.5L petrol I6 (M54 B25)
• 5-speed manual, 5-speed auto, 6-speed SMG
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
330Ci (2003–2006)
• 3.0L petrol I6 (M54 B30)
• 6-speed manual, 5-speed auto, 6-speed SMG
• 170 kW (228 hp) / 300 Nm (221 lb-ft)
Compact (E46/5)
316ti (2001–2005)
• 1.8L petrol I4 (N42 B18)
• 5-speed manual, 5-speed auto
• 85 kW (114 hp) / 175 Nm (129 lb-ft)
318ti (2001–2005)
• 2.0L petrol I4 (N42 B20)
• 5-speed manual, 5-speed auto
• 105 kW (141 hp) / 200 Nm (148 lb-ft)
325ti (2002–2003)
• 2.5L petrol I6 (M54 B25)
• 5-speed manual, 5-speed auto
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
325ti Sport (2003–2005)
• 2.5L petrol I6 (M54 B25)
• 6-speed manual, 5-speed auto, 6-speed SMG
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
Exterior:
Interior:
Mechanically:
The 4-Cylinders:
The 6-Cylinders:
The Diesels:
Suspension:
Australian model range:
Sedan
318i (1998–2001)
• 1.9L petrol I4 (M43 TUB19)
• 4-speed auto, 5-speed manual (RWD)
• 87 kW (117 hp) / 180 Nm (133 lb-ft)
320i (2000–2001)
• 2.2L petrol I6 (M54 B22)
• 5-speed auto, 5-speed manual
• 125 kW (168 hp) / 210 Nm (155 lb-ft)
323i (1998–2000)
• 2.5L petrol I6 (M52 TUB25)
• 5-speed auto, 5-speed manual
• 125 kW (168 hp) / 245 Nm (181 lb-ft)
325i (2000–2001)
• 2.5L petrol I6 (M54 B25)
• 5-speed auto, 5-speed manual
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
328i (1998–2000)
• 2.8L petrol I6 (M52 TUB28)
• 5-speed auto
• 142 kW (190 hp) / 280 Nm (207 lb-ft)
330i (2000–2001)
• 3.0L petrol I6 (M54 B30)
• 5-speed auto
• 170 kW (228 hp) / 300 Nm (221 lb-ft)
318i (2001–2005)
• 2.0L petrol I4 (N42 B20)
• 5-speed manual, 5-speed auto
• 105 kW (141 hp) / 200 Nm (148 lb-ft)
320i (2001–2005)
• 2.2L petrol I6 (M54 B22)
• 5-speed manual, 5-speed auto
• 125 kW (168 hp) / 210 Nm (155 lb-ft)
325i (2001–2005)
• 2.5L petrol I6 (M54 B25)
• 5-speed manual, 5-speed auto, 6-speed SMG
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
330i (2001–2005)
• 3.0L petrol I6 (M54 B30)
• 5-speed auto
• 170 kW (228 hp) / 300 Nm (221 lb-ft)
Coupe
320Ci (2000–2003)
• 2.2L petrol I6 (M54 B22)
• 5-speed manual, 5-speed auto
• 125 kW (168 hp) / 210 Nm (155 lb-ft)
323Ci (1999–2000)
• 2.5L petrol I6 (M52 TUB25)
• 5-speed manual, 5-speed auto
• 125 kW (168 hp) / 245 Nm (181 lb-ft)
325Ci (2000–2003)
• 2.5L petrol I6 (M54 B25)
• 5-speed manual, 5-speed auto
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
328Ci (1999–2000)
• 2.8L petrol I6 (M52 TUB28)
• 5-speed manual, 5-speed auto
• 142 kW (190 hp) / 280 Nm (207 lb-ft)
330Ci (2000–2003)
• 3.0L petrol I6 (M54 B30)
• 5-speed manual, 5-speed auto
• 170 kW (228 hp) / 300 Nm (221 lb-ft)
320Ci (2003–2006)
• 2.2L petrol I6 (M54 B22)
• 5-speed manual, 5-speed auto
• 125 kW (168 hp) / 210 Nm (155 lb-ft)
325Ci (2003–2006)
• 2.5L petrol I6 (M54 B25)
• 5-speed manual, 5-speed auto, 6-speed SMG
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
330Ci (2003–2006)
• 3.0L petrol I6 (M54 B30)
• 6-speed manual, 5-speed auto, 6-speed SMG
• 170 kW (228 hp) / 300 Nm (221 lb-ft)
Touring
320i Touring (2001–2005)
• 2.2L petrol I6 (M54 B22)
• 5-speed manual, 5-speed auto
• 125 kW (168 hp) / 210 Nm (155 lb-ft)
Convertible
330Ci (2000–2003)
• 3.0L petrol I6 (M54 B30)
• 5-speed manual, 5-speed auto
• 170 kW (228 hp) / 300 Nm (221 lb-ft)
325Ci (2004–2006)
• 2.5L petrol I6 (M54 B25)
• 5-speed manual, 5-speed auto, 6-speed SMG
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
330Ci (2003–2006)
• 3.0L petrol I6 (M54 B30)
• 6-speed manual, 5-speed auto, 6-speed SMG
• 170 kW (228 hp) / 300 Nm (221 lb-ft)
Compact (E46/5)
316ti (2001–2005)
• 1.8L petrol I4 (N42 B18)
• 5-speed manual, 5-speed auto
• 85 kW (114 hp) / 175 Nm (129 lb-ft)
318ti (2001–2005)
• 2.0L petrol I4 (N42 B20)
• 5-speed manual, 5-speed auto
• 105 kW (141 hp) / 200 Nm (148 lb-ft)
325ti (2002–2003)
• 2.5L petrol I6 (M54 B25)
• 5-speed manual, 5-speed auto
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
325ti Sport (2003–2005)
• 2.5L petrol I6 (M54 B25)
• 6-speed manual, 5-speed auto, 6-speed SMG
• 141 kW (189 hp) / 245 Nm (181 lb-ft)
Should you buy one? Well, before you even think about putting any money down on an E46, it is absolutely critical that you have a comprehensive pre-purchase inspection carried out, no exceptions. But whether you should buy one has far less to do with the car itself, and far more to do with you.
The E46 has well and truly moved into enthusiast territory, and it really needs to be approached as a rolling project, something that’ll constantly need your time, your focus, and a fair bit of mechanical sympathy if you want to keep it performing at its best.
That means, more often than not, it’s going to need a decent injection of cash. And with how affordable many E46s have become on the used market, the financial logic of it all can start to look a bit shaky, especially if you’re expecting a cheap, turn-key daily and not a car that might occasionally turn into a driveway ornament.
But, if your desire to own an E46 is split equally between the thrill of driving it and the satisfaction of getting your hands dirty working on it, then, as one owner put it, it’s easily one of the most rewarding and grin-inducing cars you’ll ever own.
On the flip side, if you’re assuming everything will run smoothly and your toolkit hasn’t been touched in years, or ever, and you’ll be relying on someone else to fix every creak, rattle or warning light, then honestly,
Should you buy one? Well, before you even think about putting any money down on an E46, it is absolutely critical that you have a comprehensive pre-purchase inspection carried out, no exceptions. But whether you should buy one has far less to do with the car itself, and far more to do with you.
The E46 has well and truly moved into enthusiast territory, and it really needs to be approached as a rolling project, something that’ll constantly need your time, your focus, and a fair bit of mechanical sympathy if you want to keep it performing at its best.
That means, more often than not, it’s going to need a decent injection of cash. And with how affordable many E46s have become on the used market, the financial logic of it all can start to look a bit shaky, especially if you’re expecting a cheap, turn-key daily and not a car that might occasionally turn into a driveway ornament.
But, if your desire to own an E46 is split equally between the thrill of driving it and the satisfaction of getting your hands dirty working on it, then, as one owner put it, it’s easily one of the most rewarding and grin-inducing cars you’ll ever own.
On the flip side, if you’re assuming everything will run smoothly and your toolkit hasn’t been touched in years, or ever, and you’ll be relying on someone else to fix every creak, rattle or warning light, then honestly, there are heaps of other cars out there that’ll suit you far better.
Should you buy one? Well, before you even think about putting any money down on an E46, it is absolutely critical that you have a comprehensive pre-purchase inspection carried out, no exceptions. But whether you should buy one has far less to do with the car itself, and far more to do with you.
The E46 has well and truly moved into enthusiast territory, and it really needs to be approached as a rolling project, something that’ll constantly need your time, your focus, and a fair bit of mechanical sympathy if you want to keep it performing at its best.
That means, more often than not, it’s going to need a decent injection of cash. And with how affordable many E46s have become on the used market, the financial logic of it all can start to look a bit shaky, especially if you’re expecting a cheap, turn-key daily and not a car that might occasionally turn into a driveway ornament.
But, if your desire to own an E46 is split equally between the thrill of driving it and the satisfaction of getting your hands dirty working on it, then, as one owner put it, it’s easily one of the most rewarding and grin-inducing cars you’ll ever own.
On the flip side, if you’re assuming everything will run smoothly and your toolkit hasn’t been touched in years, or ever, and you’ll be relying on someone else to fix every creak, rattle or warning light, then honestly, there are heaps of other cars out there that’ll suit you far better.
Have ultimate peace of mind when buying a used car by purchasing an official PPSR report.
Please note that pricing information is subject to fluctuations in the automotive market.
Information correct as of June 06, 2025.
The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice, you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.
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