Photo: steve lyon from los angeles, ca, usa, CC BY-SA 2.0, via Wikimedia Commons
The short answer
The E46 is the third M3, sold here from 2001 to 2006 as a coupe and a convertible, with the S54: a naturally aspirated 3.2-liter six that revs to 8,000 rpm and makes 333 hp.
Phoenix Yellow metallic, paint code 445. Filmed with a 3D model by Márcio Meireles (MMC Works), CC BY 4.0.
Thescore,partbypart
96Guide Score for 2006Exceptionalabout $2,715 a year to own
Place among the 69 generations
2nd of 69
Likely score range
92 to 97
Confidence
Medium
Acclaim
87 of 100
Chance of a bill over $10,000 in five years
0.4%
Best purposes
Driver's car, 1st of 49; Track, 2nd of 69
The seven parts and acclaim, 2006 model year
Heritage counts 16 of 100
6624% of it not measured
Engine counts 16 of 100
89
Drive feel counts 21 of 100
80
Analog connection counts 11 of 100
95
Weight counts 11 of 100
87
Long-term value not scored
not measured
Ownership counts 10 of 100
50
Acclaim counts 16 of 100
87
Each part is scored from 0 to 100 on a fixed outside scale. Acclaim comes from published expert lists, launch reviews and awards; the more acclaimed a car, the less its ownership cost counts in this all-time score (its dollars below are unchanged). A part marked not measured carries no weight for this car, and the others share its weight.
Long-term value, shown and not scored
29 prices from sources that allow this use (classiccars.com, enthusiastauto.com), read October 27, 2026: the middle one is $54,990, about 106% of the price new (59% once the price new is put in today's dollars). Asking prices sit above what cars sell for.
Long-term value starts to count in the score once 75% of the 69 generations have permitted prices. Today 43 do.
The cost to own
About $2,715 a year to own ($1,845 to $4,131), about $13,552 over five years, bought at five years old or its own age if older, kept five years.
Rear subframe mount cracking: about $1,225 over five years, common (source)
VANOS wear: about $700 over five years, common (source)
SMG hydraulic pump (SMG cars): about $384 over five years, possible (source)
Expect about $1,800 to $4,100 a year; the bills that decide it are rear subframe mount cracking, VANOS wear and SMG hydraulic pump. Ownership risk: moderate.
Other bodies, scored on their own
BMW E46 M3 Convertible, best year 2006 · Provisional: places 2 to 7 among the 69Guide Score 95, about $2,715 a year to own
Guide Score method v5-final.14, an editorial score built only from permitted, sourced data. How it works.
S54333 hpRWD6-speed manual or 6-speed SMG15 city, 21 hwy mpg
Colors it came in, most wanted first. Pick one to see the page in it.
Routine service a year, estimate
$500 to $1,000
Best year to buy
2006The best year to buy, reading 96 of 100, about $2,715 a year to own.
Why the 2006
Spared a fault of the 2001 to 2003 cars: Substandard rod bearings in cars built 2/2001 to 5/2003; BMW service action replaced them and extended the engine warranty to 6 years or 100,000 miles (long expired) (source, read October 27, 2026)
Years to think twice about
2001 to 2003: 95, 1 point below the 2006. Substandard rod bearings in cars built 2/2001 to 5/2003; BMW service action replaced them and extended the engine warranty to 6 years or 100,000 miles (long expired). (source, read October 27, 2026) About $3,126 to $3,203 a year to own against $2,715, with rod bearing wear (S54) (about $2,463 over five years, price source) among the bills that decide it; chance of a bill over $10,000 in five years 4.3% to 6.9%.
From our log of the changes between model years, each with its source. Only changes the score reads count as reasons; recalls BMW fixes for free, options and tuning notes do not. The cost a year is for a car bought at five years old, or its own age if older, kept five years. How the score works.
Thelongeranswer
Many owners rank it the best M3 to drive. It is also over twenty years old, and its known faults are expensive: rod bearings, VANOS and cracks where the rear subframe meets the floor.
The right car comes with receipts for all three.
What to look for
Receipts for rod bearings with the date and mileage, VANOS work and subframe reinforcement
A subframe inspection on a lift
A cold start with no knock or rattle
Valve clearance adjustments in the records
On SMG cars, clean shifts and a record of the hydraulic pump
What changed by year
What differs by model year is the bearing history of the early cars and the spec of the late ones.
Built February 12, 2001 to May 22, 2003: BMW found these cars' connecting rod bearings were not made to its standards and replaced them, with new engine software, under Service Action 422 (SI B11 04 04); dealers fixed a label with the code 422 to the door pillar. Check by VIN that it was done.
The 6-year, 100,000-mile engine warranty BMW gave the 2001 to 2003 cars has long run out, and no source shows later bearings are immune, so on any year ask for receipts for bearings replaced since, with the mileage.
Coupe and convertible were both sold from the 2001 model year, and every US SMG car has the same SMG II gearbox.
From September 2001 bi-xenon headlights; from March 2002 optional 19-inch wheels; from September 2002 DVD navigation in place of CD.
From March 2003 the facelift: new tail lights, and Mystic Blue and Silver Grey replaced Topaz Blue and Steel Grey; Laguna Seca Blue and Oxford Green ended in August 2004.
From December 2004, the 2005 and 2006 coupes could have the Competition Package, with its 19-inch wheels, quicker steering, bigger front brakes and the Interlagos Blue only it offered.
Convertibles for buyers who want the collector car
Knownissuestocheck
What goes wrong on this generation, roughly what a fix costs at an independent shop, and how to spot it before you buy. Every M3 generation compared.
Approximate proportions
High
Medium
Low
Recall, fixed free
Engine on the 2006 car
Rod bearing wear (S54)High$2,500
Ask for receipts showing when the bearings were replaced and at what mileage. Without them, budget for the job, and listen for a knock on a cold start.
VANOS wearMedium$2,000
Look for a VANOS reseal or rebuild in the records, and listen for rattling at idle once the engine is warm.
5known issues
9NHTSA recalls, 2001 to 2006
267owner complaints to NHTSA filed as the M3
NHTSA files some owner complaints about this car under the M3 Convertible, M3 Coupe and 3 Series, so they are missing here. Read them by year, make and model at nhtsa.gov/recalls.
Rod bearing wear (S54)
S54 rod bearings wear with miles and hard use, and a spun bearing destroys the engine. Many owners replace them preventively, commonly somewhere between 60,000 and 100,000 miles.
If a bearing spins: a used S54 is $5.5k to $7.5k before fitting, or a specialist rebuild of the failed engine $16,956, removal and fitting extra. Source: Lang Racing, which sells the rebuild; used-engine asking prices on eBay, October 18, 2026.
How to check
Ask for receipts showing when the bearings were replaced and at what mileage. Without them, budget for the job, and listen for a knock on a cold start.
$2,500to prevent it
High severity
Rear subframe mount cracking
The floor where the rear subframe mounts can crack with years of hard launches and use. The repair is reinforcement plates welded to the floor.
How to check
Have the subframe mounts inspected on a lift, and ask whether reinforcement plates have been fitted.
$3,500est. repair
High severity
VANOS wear
The VANOS variable valve timing wears its seals, and on some cars its oil pump or hub bolts fail, bringing rough running, lost power and a check-engine light.
How to check
Look for a VANOS reseal or rebuild in the records, and listen for rattling at idle once the engine is warm.
$2,000est. repair
Medium severity
Cooling system aging
The water pump, thermostat, expansion tank and radiator age out, and a failure can overheat the engine.
How to check
Look for a cooling system refresh in the records, and check for coolant smell or dried residue around the hoses and tank.
$1,000est. repair
Medium severity
SMG hydraulic pump (SMG cars)
The SMG automated manual shifts with a hydraulic pump, motor and pressure accumulator. When they fail the car can drop into neutral or stop changing gear. BimmerWorld, which sells rebuilt units, says the pump lasts somewhere around 100,000 miles; its rebuilt pump, motor and accumulator costs about $2,900 before labor, and we estimate about $3,200 fitted.
How to check
On SMG cars, check that shifts are clean and ask whether the pump has been replaced. Some owners convert to the six-speed manual.
$3,200est. repair
Medium severity
Ownership and safety
Campaign 20V018000 · Jan 16, 2020 · AIR BAGS:FRONTAL:PASSENGER SIDE:INFLATOR MODULE
BMW of North America, LLC (BMW) is recalling certain 2000-2005 323iT, 325iT, 325xiT, 320i, 323i, 325i, 325xi, 328i, 330i and 330xi and 2000-2006 323Ci, 325Ci, 328Ci, 330Ci, M3 Coupe, 323Cic, 325Cic, 330Cic, and M3 Convertible vehicles equipped with non-desiccated frontal Takata PSAN inflators and PSPI passenger frontal air bag inflators containing phase stabilized ammonium nitrate (PSAN) propellant that were used as interim remedy parts for previous Takata recalls. These inflators may explode due to propellant degradation occurring after long-term exposure to high absolute humidity, high temperatures, and high temperature cycling.
Remedy: BMW will notify owners, and dealers will replace the passenger's front air bag, free of charge. The recall began February 13, 2020. Owners may contact BMW customer service at 1-800-525-7417.
Campaign 20V017000 · Jan 15, 2020 · AIR BAGS:FRONTAL:DRIVER SIDE:INFLATOR MODULE
BMW of North America, LLC (BMW) is recalling certain 2008-2013 128i and 135i Convertibles, 128i, 135i, and M Coupes, 2007-2010 X3 30si and X3 xDrive30i, 2013-2015 X1 sDrive28i, X1 xDrive28i and X1 xDrive35i, 2007-2013 328i, 328i xDrive, 335i, 335is, 335i xDrive and M3 Coupes, 2006-2011 328i, 328xi, 328i xDrive, 325i, 325xi, 330i, 330xi, 335i, 335xi, 335i
xDrive and M3, 2009-2011 335D, 2006-2012 325xi, 328i, 328xi and 328i xDrive, 2010-2011 X6 ActiveHybrid, 2007-2013 328i, 335i, 335is, M3 Coupes, X5 30si, X5 xDrive30i, X5 xDrive35i, X5 48i, X5 xDrive48i, X5 xDrive50i and X5 M, 2009-2013 X5 xDrive35d and 2008-2014 X6 xDrive35i, X6 xDrive50i and X6M vehicles equipped with non-desiccated driver frontal air bag inflators containing phase stabilized ammonium nitrate (PSAN) that were used as interim remedy parts for previous Takata recalls. These inflators may explode due to propellant degradation occurring after long-term exposure to high absolute humidity, high temperatures, and high temperature cycling.
Remedy: BMW will notify owners, and dealers will replace the driver air bag. On X5 and X6 vehicles, only the inflator will be replaced. All repairs will be performed free of charge. The recall began March 11, 2020. Owners may contact BMW customer service at 1-800-525-7417.
Campaign 14V428000 · Jun 11, 2018 · AIR BAGS
BMW of North America, LLC (BMW) is recalling certain model year 2000 323i sedans, coupes, convertibles, and Sports Wagons; 2000 328i sedans and coupes; 2001-2005 325i sedans, coupes, convertibles, and Sport Wagons; 2001-2005 325xi sedans and Sports Wagons; 2006 325i coupes and convertibles; 2001-2006 330i sedans, coupes, and convertibles; 2001-2005 330xi sedans; and 2001-2006 M3 coupes and convertibles to address a safety defect in the passenger side frontal air bag which may produce excessive internal pressure that could cause the air bag inflator to rupture upon deployment of the air bag.
Remedy: Owners are advised not to drive their vehicles until they have been repaired. BMW will notify owners, and dealers will replace the passenger side frontal air bag, free of charge. An interim notice was mailed to owners in September 2014. A second notice was mailed when an adequate supply of parts became available, on December 1, 2014. Owners may contact BMW customer service at 1-800-525-7417 or email BMW at CustomerRelations@bmwusa.com.
Campaign 17V676000 · Oct 25, 2017 · ELECTRICAL SYSTEM:WIRING
BMW of North America, LLC (BMW) is recalling certain 2006-2011 323i, 325i, 325xi, 328i, 328xi, 330i, 330xi, 335i, 335xi and M3, 2007-2011 328i xDrive, 335i xDrive and 335is and 2009-2011 335d vehicles. The wiring and electrical connectors for the system that controls air flow for the heating and air conditioning system may overheat.
Remedy: BMW will notify owners, and dealers will replace the wiring and electrical connectors, free of charge. Interim letters were mailed on November 27, 2017. Owners will receive a second notice when the remedy becomes available. Owners may contact BMW customer service at 1-800-525-7417.
Campaign 17V047000 · Jan 20, 2017 · AIR BAGS:FRONTAL:DRIVER SIDE:INFLATOR MODULE
BMW of North America, LLC (BMW) is recalling certain 2000-2002 BMW 320i, 323i, 325i, 325xi, 330i, 330xi, 323Ci, 325Ci, 330Ci, M3, 323iT, 325iT and 325xiT vehicles, 2001-2002 525i, 530i, 540i, M5, 525iT and 540iT vehicles, and 2001-2003 X5 3.0i, X5 4.4i, and X5 4.6is vehicles. These vehicles may have had a driver-side air bag module installed as replacement equipment such as after a vehicle crash necessitating replacement of the original air bag, or as a remedy part for a prior recall. These replacement modules contain an air bag inflator that may rupture due to propellant degradation occurring after long-term exposure to lower absolute humidity, temperature and temperature cycling.
Remedy: Owners are advised not to drive their vehicles until the vehicle has been remedied. BMW will notify owners, and dealers will inspect the driver side air bag module, replacing it as necessary, free of charge. The recall began March 15, 2017. Owners may contact BMW customer service at 1-800-525-7417.
Campaign 15V318000 · May 28, 2015 · AIR BAGS:FRONTAL:DRIVER SIDE:INFLATOR MODULE
BMW of North America, LLC (BMW) is recalling certain model year 2002-2005 325i, 325xi, 330i, and 330xi Sedans, and 325xi and 325i Sportswagons, 2002-2006 330Ci, 325Ci, and M3 Convertibles and 325i, 330i, and M3 Coupes, 2002-2003 M5, 540i, 525i Sedan, and 530i Sedans, and 540i and 525i Sportswagons, and 2003 X5 3.0i and 4.4i Sports Activity Vehicles. Please note that the 5-series and X5 vehicles are only included if they are equipped with the optional sports steering wheel. The affected vehicles are equipped with a dual-stage driver frontal air bag that may be susceptible to moisture intrusion which, over time, could cause the inflator to rupture.
Remedy: Owners are advised not to drive their vehicles until the vehicle has been remedied. BMW will notify owners, and dealers will replace the front driver air bag module, free of charge. The recall began Aug 2016. Owners may contact BMW customer service at 1-800-525-7417. Note: This recall supersedes recall 14V-348 in its entirety. Additionally, vehicles that have had their driver side frontal air bag replaced previously as part of a recall remedy need to have their air bag replaced under this recall as well. Note: On December 17, 2015 BMW removed the model year 2004 X5 3.0i and 4.4i Sports Activity vehicle from this recall. Those vehicles were mistakenly identified as including the air bags that are subject to this recall.
Campaign 13V172000 · May 2, 2013 · AIR BAGS
BMW is recalling certain model year 2002-2003 325i, 325xi, 330i, 330xi sedans; 325Ci and 330Ci coupes and convertibles; 325iT and 325xiT Sports Wagons; and M3 coupes and convertibles to address a safety defect in the passenger side frontal air bag which may produce excessive internal pressure causing the inflator to rupture upon deployment of the air bag.
Remedy: Owners are advised not to drive their vehicles until they have been repaired. BMW intends to issue initial notifications to owners informing them of the safety defect in June 2013. Once replacement parts are available, estimated for July, BMW will notify owners again to contact their dealers and schedule a replacement of the passenger air bag, free of charge. Owners may contact BMW customer service at 1-800-525-7417 or email BMW at CustomerRelations@bmwusa.com.
ON CERTAIN PASSENGER VEHICLES, THE WINDOW LIFTING ANTI-PINCHING DEVICE MIGHT NOT FUNCTION PROPERLY.
Remedy: DEALERS WILL INSPECT, AND IF NECESSARY, REPLACE THE ELECTRONIC CONTROL UNIT FOR THE WINDOW LIFTING ANTI-PINCHING DEVICE. OWNER NOTIFICATION BEGAN MAY 27, 2003. OWNERS WHO TAKE THEIR VEHICLES TO AN AUTHORIZED DEALER ON AN AGREED UPON SERVICE DATE AND DO NOT RECEIVE THE FREE REMEDY WITHIN A REASONABLE TIME SHOULD CONTACT BMW AT 1-800-831-1117.
VEHICLE DESCRIPTION: PASSENGER VEHICLES. THE TWO SCREWS THAT SECURE THE PARKING BRAKE CABLE MOUNTING BRACKET TO THE BACKING PLATE WERE NOT TIGHTENED PROPERLY. AS A RESULT, THE SCREWS COULD LOOSEN AND EVENTUALLY FALL INTO THE PARKING BRAKE DRUM.
Remedy: DEALERS WILL REPLACE THE PARKING BRAKE CABLE ATTACHING SCREWS AND SECURE THEM WITH THE PROPER TORQUE. OWNER NOTIFICATION BEGAN OCTOBER 4, 2001. OWNERS WHO TAKE THEIR VEHICLES TO AN AUTHORIZED DEALER ON AN AGREED UPON SERVICE DATE AND DO NOT RECEIVE THE FREE REMEDY WITHIN A REASONABLE TIME SHOULD CONTACT BMW AT 1-800-831-1117.
Live from NHTSA, across the 2001 to 2006 model years.
Whatitcoststorun
Our estimates at an independent shop, parts and labor; fuel from the EPA.
Fuel a yearEPA
~$1,250
At about 4,000 miles a year, our estimate for a classic M car, the two-year budget's miles; 17 mpg combined, premium gasoline
Factory tiresEstimate
$900 to $1,400
18in staggered summer (19in optional, and with the Competition Package)
Brakes, front and rearEstimate
$1,000 to $1,600
Pads and rotors, independent shop
Annual serviceEstimate
$500 to $1,000
Oil and inspections
Pricing tires for this car? Compare the factory sizes at Discount Tire, and ask a local shop to match it.
Maintenance schedule
Oil service, 10W-60yearly or 7.5k mi~$200
Valve clearance adjustmentevery 15k to 30k mi~$600
Brake fluidevery 2 yrs~$120
Cabin microfilterevery 2 yrs~$90
Spark plugsevery 60k mi~$350
Tire set, wear itemevery 15k to 25k mi~$1,150
Brake job, wear itemevery 30k to 50k mi~$1,300
Sources and methodwhat each figure covers
Fuel from EPA fueleconomy.gov: its yearly cost is for 15,000 miles with 55% city driving, moved here to the miles a year the two-year budget uses. The rest are our estimates at independent-shop and retail prices from September 2026. Service is a year of routine maintenance at 10,000 miles: one or two oil changes, brake fluid, filters, and spark plugs spread over their interval. Repairs are separate. Tires are a mounted set of summer tires; brakes are pads and rotors on both axles. Prices vary by region and shop.
Pricesnearyou
Your ZIP stays in this browser; it is sent only to look up cars listed near it.
Set your ZIP and this page shows the asking prices of M3 E46 cars listed for sale within 100 miles of you today, with the cars themselves.
Whattheysellfor
$19,500lowest example
$66,000highest example
3listings tracked
2005 BMW M3
Silver Grey · 41,000 mi · 6MT · RWD
$66,000listing score 91
2003 BMW M3
Imola Red · 82,000 mi · 6MT · RWD
$34,500listing score 65
2002 BMW M3
Titanium Silver · 121,000 mi · 6SMG · RWD
$19,500listing score 51
Representative listings, last reviewed September 2026. Examples chosen by us, not a live feed.
The first six-cylinder M3 and the first M3 sedan. US cars used a simpler 240 hp engine instead of Europe's.
This car
E46 M3
Third M3, S54 3.2 naturally aspirated six at 333 hp with an 8,000 rpm redline. Six-speed manual or SMG, coupe and convertible in the US, and a Competition Package for 2005 and 2006.
Then came
E92 M3
The S65 4.0 V8 at 414 hp, the only V8 M3, sold as a coupe, a sedan and a folding-hardtop convertible.
Platform history, the BMW M3 sedan
The M3 traces back to the E30 in 1986. From the E36 onward a sedan body was offered alongside the coupe, and from the F80 the M3 is sedan only, the coupe split off as the M4.
1986E30 M3The homologation original, built to go racing. Two-door only.
1992E36 M3First straight six M3, first M3 sedan. A grand tourer turn.
2000E46 M3This carThe high revving S54 six, an enthusiast icon. Coupe and convertible only in the US.
2007E90 M3The S65 V8 sedan, the last NA M3 sedan, sibling to the E92 coupe.
2014F80 M3First turbo M3, S55 twin-turbo six, sedan only.
2021G80 M3S58 six, optional xDrive, new vertical grille.
Keep it on your shortlistSaved in this browser only, ready to compare.
The report already scores the spec and takes the records; this would add the build date and option codes from the VIN, and an originality check against the window sticker. Not built yet. Press it if you would use it, and we will build it.
Not built yet. Press it if you would use it, and we will build it.
FollowtheM3
The M Index, once a month: any change to the M3's guide or score, with the reason, new recalls on M cars, and one thing to check before you buy.
