Buy The Best BMW M3 While It’s Still Affordable

You probably came in here expecting to read all about the E46 BMW M3, which is widely regarded as the best ever made, but I’m not so sure. If we look at the history of the M3, it started off as a homologation special. BMW realized there was a massive untapped market, but some changes needed to be made. The E30 was a specialized piece of kit with a dogleg gearbox, which is why BMW made it more user-and family-friendly for the E36 generation. That’s why we see the E36 as the true genesis of the M3, because it set the tone for every model that came after. Remember, the M3 is not just a track tool. It’s meant to be a luxurious all-rounder and a sports car wrapped into one package.

The E36 was the first M3 available as a sedan, which made sense. Adding two doors was the most sensible thing BMW could do to make the M3 more user-friendly but it seems folks didn’t really care. In the USA, BMW sold 18,900 coupes and just 7,700 sedans. It seems people preferred style to practicality, which is why the E46 was only ever available as a coupe for enthusiasts, and a convertible for posers. This trend has since changed, with the four-door M3 now being the best-selling M model. And the highly-practical Touring’s sales shot up by 57% in 2024, though it’s worth stating that it wasn’t on sale for a full year in 2023.

It seems people have realized that you can have fun and practicality in one package, which suddenly makes the E90 M3 Sedan the most attractive of the bunch. Prices are already climbing, but not to a point where you still can’t get one for a reasonable amount of money.

Why The E46 M3 Isn’t The Best

Not The GOAT, But Still Exceptional

Let me start this off by saying that there has never been a bad M3. From the rev-happy four-cylinder E30 right up to the supercar-like straight-line performance of the current M3 Competition, there hasn’t been a bad apple in the bunch.

I also totally understand why most people champion the E46 M3 as the best of the bunch. It’s equipped with arguably the best naturally aspirated inline-six engine ever produced, and it dates back to an era when BMWs were designed by people blessed with eyes. Then there’s the E46 CSL, which is one of the finest driving machines ever made, even though we’re only focusing on standard M3s today.

In my opinion, there are three things that count against the E46 M3:

It’s No Longer Affordable

You could hop online right now and find an E46 M3 for $16,000, but you should know three things about it. First, it’s going to be a convertible. Secondly, the mileage will be sky-high, there will be no service history, and it will have at least one incident report on file. And finally, it will be equipped with an automated manual transmission, also known as SMG. This is not what you want.

The spec everyone dreams about is a low-mileage coupe with a full-service history and no damage reports in a body color that accentuates those angry lines. You also want a six-speed manual because the automated manual was terrible in traffic, and it had several reliability issues. If you go looking for this exact specification, the pool is much smaller because most E46s were scooped up when they were cheap 10 years ago, and their owners couldn’t afford the upkeep.

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A mint example of an E46 coupe costs $55,000 on the lower end, but can increase by up to $90,000 for a final year model Competition Package with a manual gearbox in Interlagos Blue. Basically, enthusiasts have already identified this car as one of the all-time greats, and the used examples you’d want to invest in are already priced accordingly.

The Engine Is Not As Special As You Think

By special, I don’t mean it’s not a great engine. Any inline-six that revs to 8,000 rpm and makes a noise that is so distinctive is sublime. What I mean by special is that it was shared by multiple cars. The S54 was used in the M3, the Z3 M Roadster, the M Coupe, the Z4 M Roadster, and the Z4 M Coupe. Wiesmann also used it in the MF3. These mad Italians would later use BMW’s V10 to power the same car.

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This somehow makes the E46 less special than the E90, as we shall later explain. For now, enjoy the noises made by the E46 below.

It Only Has Two Doors

This may not have mattered to customers when this car was new, but we expect a lot more from cars these days. These days, a car is a failure if it can’t carry five people and loads of luggage. It’s why performance SUVs are so popular, and why the BMW M5 Touring exists. Viewed through a modern lens, the E46 M3 doesn’t score very high in the practicality department. It’s hardly the car’s fault, but we do think BMW missed a trick by not building the E46 M3 Touring.

The second-gen M5 (1988 to 1995) was available as a wagon, so BMW knew that performance and practicality make magnificent bedfellows. It even built a concept showcasing what could have been the ultimate M car, but, sadly, it was never put into production. I suspect BMW opted not to build it because it would have ended the BMW M5.

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Why The E90 Is Better

Hear Me Out, Okay?

Okay, I’ll just state right off the bat that the E46 is much better looking, but it’s not like the E90 is an XM. But what makes the E90 better is that it addresses all the E46’s shortfalls and then some. It’s worth pointing out that the E90 M3 was the least successful variant of the bunch. The best-selling M3 was once again the coupe, with more than 40,000 units sold. The convertible sold just over 16,000, while the sedan never even reached 10,000 units.

As we now know, the BMW M3 became a sedan-only option for the next generation. It was way more successful, selling nearly 35,000 units. It’s odd how much sales can change between one generation to the next, but we suspect the C63 and Audi RS4 forced BMW’s hand.

In any case, here’s why the E90 is better:

You Can Still Buy One At A Reasonable Price

As with the E46, finding an E90 in the right specification is also an annoying task. Sedans are rare, as is finding one in excellent condition with low miles on the clock. And then you add a six-speed manual on top of that, and the pool gets very small. That being said, you’re looking at an average price of $47,000, and that’s for a mint manual with just under 28,000 miles on the clock. If you want an E46 M3 with the same mileage, that’s going to cost more than $70,000.

Prices for pristine E90s are on the rise, but not so much that you can’t justify the cost.

The Engine Is Very Special

No other BMW but the three body styles of M3 used this engine. It was never shoehorned into anything else, apart from another wild Wiesmann. The S65 is basically the S85 V10 with two cylinders lobbed off. You’d expect it to have less character as a result, but it revs to 8,400 rpm, and it’s one of the best-sounding V8s ever made. The only thing better than the V8 noises from the rear are the induction noises from the front.

The engine has another ace up its sleeve. This generation M3 was the first to use dual-clutch technology. Unlike SMG, you could actually live with a DCT gearbox. And the car is faster with this transmission equipped. The 0-60 mph time dips to a claimed 4.4 seconds, though a standard DCT model has been clocked doing it as quickly as 3.9 seconds.

You Can Have It With Four Doors

Obviously, the E90 is more practical, but it’s more than that. The E90 is just on the cusp of being modern enough to live with on a daily basis. The build quality was good, and it dates back to an era where buttons were still considered a must-have. In fact, the only things you might miss are Apple CarPlay and Android Auto, but there’s a fix for that. Because the E90 3 Series was so popular, there are third-party kits you can slot into the existing screen’s place, and they’re compatible with iDrive.

The E90 was also made before driving modes, though there is a “power” button. The traction and stability control are either on or off. What a novel idea…

Is The E90 Really Better Than The E46?

To me, the E90 is the better car. My respect for the E46 is immense, but I adore the V8 M3 sedan for how unique it is. It won’t be long before people realize just how special it was. The last naturally aspirated M3 with a standalone engine not shared with anything else. This car also cemented my relationship with the performance sedan in general. I was lucky enough to run a sedan way back in 2010 as a long-term loaner, and I still haven’t come across another car that does so many things so well.