BMW E46 M3 Buyers Guide: What to Look For

Why the E46 M3?\n\nThe E46 M3 hit the sweet spot of analog driving feel with enough modern refinement to daily drive. It is lighter than the E9x M3 that followed and more reliable than the S50/S52 engines in the E36.\n\n### Model Years\n\n2001-2006 - All E46 M3s came with the S54 engine. Key changes by year:\n\n- 2001-2002: Early production, some teething issues\n- 2003: SMG II improvements, Competition Package introduced\n- 2004-2006: Most refined, Competition Package most desirable\n\n### Transmission Options\n\n6-Speed Manual - The purist choice. Getrag S6S 420G is robust. Check for worn synchros on 2nd and 3rd.\n\nSMG II - Sequential manual. Fun but expensive to repair. Pump and actuator failures common on high-mileage cars.\n\n### Common Issues\n\n- Subframe cracking - Check mounting points. Common on track cars and high-mileage examples\n- VANOS wear - Rattle on startup, loss of power. Rebuild kits available\n- Rod bearings - Preventative replacement recommended at 80k miles\n- Rear trailing arm bushings - Wear causes vague handling\n\n### What to Pay\n\n- Rough examples: $20,000-$30,000\n- Good drivers: $35,000-$50,000\n- Excellent/low-mile: $55,000-$80,000\n- Competition Package/special editions: $70,000+