E46 (1999 to 2006)

Produced from 1998 to 2006, the BMW E46 represents one of the most respected generations of the 3 Series, praised for striking the ideal balance between driver engagement, build quality, and everyday usability. Offered in a wide range of body styles—sedan, coupe, convertible, wagon (Touring), and hatchback (Compact)—the E46 was available exclusively with rear-wheel drive (with AWD offered in select markets) and a broad selection of inline-four and inline-six engines. Non-M models such as the 323i, 328i, 330i, 325i, and 330Ci are particularly well regarded for their smooth naturally aspirated six-cylinder engines, hydraulic steering feel, and cohesive chassis tuning, which many enthusiasts consider a high point for BMW. In the Australian market, the E46 was officially sold in large numbers and became a staple of premium motoring in the early 2000s, valued for its refinement and longevity. Today, non-M E46s are increasingly appreciated as modern classics, with demand strongest for six-cylinder variants, manual transmissions, coupes and wagons, factory sport packages, and unmodified examples. As later BMWs moved toward turbocharging and electric steering, the E46’s analogue driving feel and timeless design have helped cement its reputation as one of BMW’s finest non-M platforms.