Wise Buyer: BMW E46
A coupé with decent looks, rear-wheel drive and power to match the badge. Cheap, too
Get to know this modern classic.
When BMW introduced the fourth-generation 3-Series it had already laid impressive foundations; the original 3-Series (the E21 of 1975) marked the start of a new era, and each generation brought more variations on the theme. Some reckon this is the greatest 3-Series ever, as the E46 improved on all previous editions, but later models added complexity without being the better for it.
Why you want one
By the time it had finally gone off sale, the E46 had become BMW’S biggest-selling model of all time in the UK, thanks to a wide range of engines, transmissions, body styles and trims. Whether you wanted a saloon, estate, hatchback, coupé or convertible, BMW could help. If economy was your priority there were ultra-efficient diesels and four-cylinder petrol engines; for power junkies there were muscular six-cylinder engines (petrol and diesel) right up to the mighty M3, which we won’t cover here as it’s too specialist. Throw in a sharp design, superb handling and performance, plus the E46 has all mod-cons without being over-complex, so you can use one on an everyday basis.
Which one is best for you
E46 expert Travis Warrilow runs Worcester-based Absolute BM. He told PC: ‘The six-cylinder engines make the E46 truly special, but don’t dismiss the four-cylinder engines too readily, although the pre-september 2001 316 and pre-april 2002 318 are pretty gutless. Reliability tends to be good, so don’t avoid really well-equipped cars; some E46s were pretty basic so it’s worth seeking one out with cruise control, air-con, heated seats and a sunroof. If you do buy a high-spec car you can do much of the work yourself if things stop working. Some bits will be expensive to buy, but in many cases you can buy used parts at a hefty saving over new.
If you’re buying for everyday use and you do a lot of miles, a four-pot powerplant is ample as you get an excellent balance of economy and performance; a 320d will do 140mph yet it can return 50mpg. Buy a 330d and you’ll have a car with searing performance, yet the fuel bills needn’t be ridiculous unless you use that performance regularly.’
The E46 came in SE or Sport trims with the latter getting lowered, stiffer suspension. While Sport suspension makes the car more engaging, the SE is comfier and the smaller wheels are less prone to tramlining. Some diesels got five speeds while others got six; the six-speed gearbox is nicer to use.
The coupé and convertible can seat four adults quite comfortably and they come with a decent boot, too (less so where the rag-top is concerned). A decent cabrio costs from £1500 so it makes more established four-seat open-topped classics look pricey. Meanwhile, the Touring (estate) strikes a decent balance between form and function, so it’s not massively voluminous but it’s far from cramped, still brilliant to drive and it looks smart, too.
What are the Achilles’ Heels?
Says Travis Warrilow: ‘The E46 is incredibly usable but there are a lot of neglected cars out there as a major service and some non-routine maintenance can easily cost what the car is worth. So owners bodge things, or throw the car away and buy another. But there are owners who put money into their E46s; the key is to invest in preventative maintenance such as replacing the engine breathers every 50,000 miles.’
Despite its relative youth, corrosion is common in the front and rear wheelarches, so check the lips and look/feel for evidence of rusting from the inside out. If the rear arches have rusted badly repairs will be expensive; damaged front wheelarches are cheaper and easier to fix.
Make sure all of the windows go up and down smoothly, as the regulators wear and eventually fail altogether; impending failure is usually given away by clicking sounds. If there’s a sunroof fitted, check its operation and ensure its drains aren’t blocked, leading to leaks.
Be wary of any E46 on cheap or mismatched tyres. To get the best out of these cars you need to fit quality rubber and look after it. Indeed, regular maintenance is key, so look for plenty of service history and ensure the engine hasn’t been allowed to run low on oil as E46s tend to get through lubricant, especially if driven hard. No E46 engine has a cam belt but key parts such as the water pump, drive belts and tensioner need to be renewed promptly every 50,000 miles or so.
Cooling problems aren’t that rare, so look for damaged blades on the plastic radiator fan (they can detach altogether), and ensure the thermostat is working properly; if not the engine will run cool. A misfiring petrol engine probably has a duff coil pack or two; the original plastic-bodied packs were a weak spot but most have been replaced with more durable metal-bodied items by now.
Can you make it better?
There are lots of things you can do to an E46, but that doesn’t mean you should. The standard car is so good that many changes make the car less usable, comfortable or reliable. Upgrading SE seats to Sport items will boost comfort levels – indeed, there’s a raft of bits you can buy from a breakers to upgrade a low-spec E46, such as heated seats, a multi-function steering wheel, leather trim and better in-car entertainment. The diesel engines can be tuned easily by remapping, but don’t get carried away or reliability will be compromised.
‘Good maintenance is key with an E46, so look for plenty of service history’