Car Video Reviews / BMW E46 M3
BMW E46 M3 Manual Review: Still the Ultimate Driving Machine?
By Stuart Ellis · 5 February 2026 · 8 min video
More than two decades on, does the E46 M3 still deserve its reputation? I took a 2002 manual for a proper drive to find out.
The verdict
Hell yes. The E46 M3 is a current and future classic: compact, beautifully balanced and powered by one of the great naturally aspirated straight-sixes. It's the best-looking M3 to date, CSL aside. Buy a well-maintained manual with a proper inspection and history, and drive it for love, not likes.
Key facts
- Engine
- 3.2-litre S54 naturally aspirated straight-six, 8,000rpm
- Power / torque
- 252kW / 365Nm
- Gearbox
- 6-speed Getrag manual, rear-wheel drive, LSD
- 0–100km/h
- Under 5 seconds
- Weight
- About 1,500kg (around 200kg less than a current M2)
- Values
- Clean manuals often over A$80,000
What I liked
- Steering with real road feel
- Light, agile and balanced chassis
- Analogue cabin with usable rear seats and boot
- Manual is the pick over the jerky SMG
What I didn't
- Shifter throws a bit long and rubbery
- Sport button makes the throttle too sharp
- Brakes need upgrading for track work
- Known issues: rod bearings, rear subframe and VANOS
FAQ
What should I check before buying an E46 M3?
Rod bearings, the rear subframe and VANOS. Get a proper inspection and full history.
Manual or SMG?
Manual. The SMG is jerky and problem-prone.
How much is an E46 M3 in Australia?
Clean manual examples are often over A$80,000.
Should I fit an aftermarket exhaust?
I wouldn't. An aftermarket intake brings out the induction sound instead.
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