Buyer’s guide: BMW M3 (E36)

By Malcolm McKay

| 23 Oct 2024

Classic & Sports Car – Buyer’s guide: BMW M3 (E36)

Why you’d want a BMW M3 (E36)

Thereʼs no doubt the BMW E36 M3 had a very hard act to follow: the race-orientated, left-hand-drive-only E30 was hands-down the best all-round driverʼs car of the 1980s.

On paper, the E36 was better – miles better. But here was the paradox: in refining every detail, BMW had inevitably lost some of the character, some of the feel, some of the communication between road and driver.

It was subtle – and unfair, because it was without doubt a better performance car – but has been enough to keep E36 prices low while E30s soar.

The result is that the BMW E36 M3 today is a bargain – and buyers are waking up to that quickly.

The E36 M3 pioneered variable valve timing (VANOS) on the inlet camshaft of the legendary M Power ʻsixʼ, giving it 286bhp and 236lb ft – with more torque at idle than the previous M3ʼs peak.

It was also far more economical than any other car with comparable performance, while the dual-mass flywheel helped to make both engine and transmission silky-smooth.

The 50:50 weight distribution, MacPherson struts at the front and multi-link rear ʻZ-axleʼ were enhanced with a 3cm lower stance and beefed-up suspension optimised for handling.

The ergonomically excellent interior was complemented by exceptionally low noise levels.

Now available in right-hand drive and more user-friendly, the BMW E36 M3 sold very well, with the UK one of its biggest markets.

The Coupé made up two-thirds of M3 sales, and was the only model to feature high-backed ʻVaderʼ seats as standard.

The rarest was the four-door saloon, which came with wood trim (optional on Evo Coupés), slightly softened suspension and 17in ʻSoccer Ballʼ alloy wheels.

The Convertible was marginally heavier and slower, with a noticeable reduction in body stiffness, while remaining a hugely fast and capable car. A rear protection bar would pop up if it rolled.

The 3.2 Evo of late 1995 brought VANOS to the exhaust cam, too, giving a power boost to join its handling tweaks.

Visual changes were few – just clear indicator lenses, black mesh in the lower valance, a smoother front grille, a slightly higher rear spoiler and polished alloys.

The first two-door Evos also featured aluminium doors, reducing kerbweight by 15kg.

Even in 1998, a year before its demise, Autocar wrote: ʻIf you demand supercar performance, a car to make your heart skip a beat, the M3 is the one.ʼ

Images: James Mann

BMW M3 (E36): what to look for

Trouble spots

Please see above for what to check when you look at any E36-generation BMW M3 classic cars for sale.

Engine

BMW Motorsport’s iron-block straight-six was traditional in layout, but pioneering VANOS variable valve timing – double on the Evo – brought in Formula One-style technology and gave an unparalleled match of performance and fuel economy.

Maintained well, it’s reliable and long-lived. Check for oil leaks, rough running and untoward noises.

Gearbox

Ensure the clutch releases fully (check bite point, and hold down to see if the feel changes).

Look out for worn second/third-gear synchros on six-speed cars.

Roof

The E36 BMW M3 Convertible’s roof is complicated and, if it is worn or mistreated, repairs can become very expensive, so ensure it is intact and it all functions as it should.

Suspension and wheels

Inspect an E36 BMW’s rear trailing-arm bushes and top damper mounts.

Look out for rusted brake lines and seized calipers.

Evo rear wheels should be 1in wider than fronts.

Interior

Check the seats for bolster wear and make sure that all electrical functions operate as they should.

Almost all in the UK were specified with optional leather.

BMW M3 (E36): before you buy

Check the oil level: engines can get thirsty. The dual VANOS on Evos suffers solenoid issues exacerbated by dirty oil, so look for a meticulous service history.

Roughness or fluctuating revs at idle, especially accompanied by hesitation when accelerating hard, is likely to indicate solenoid piston-seal failure; a growling noise means worn gears.

Replacing VANOS seals every 50,000 miles is worthwhile and can be a DiY job; if problems are present, Mr Vanos will do a full Evo rebuild for £1595. Single-VANOS faults are rare.

A well-maintained BMW M3 engine will clock 150,000 miles with ease, but loose valve clearances take the edge off performance.

US carsʼ fragile plastic water-pump impellers fail beyond 60,000 miles, but the metal item on European-market engines does not suffer.

Clutch issues can be hydraulic (closing-up flexi hose, failing master or slave) or just wear.

Select Sport mode on SMG transmissions and drive hard to check for clutch slip; low oil can cause jumping out of gear.

The SMG is costly to fix due to the complexity: pumps and electronics fail, and some have been swapped for a manual.

Check the rear end for rusted damper top mounts and failing rubber bushes, especially in the trailing arms.

Brake lines are prone to rust and time-consuming to replace because the fuel tank and exhaust have to be dropped.

Beware overseas-market specs: US cars had 240bhp/225lb ft, an optional five-speed auto ʼbox and softer suspension, while BMW M3s built in South Africa had lower compression.

BMW M3 (E36) price guide

Restoration/average/show*

Saloon: £8000/14,000/20,000
Convertible: £10,000/16,000/30,000
Coupé: £12,000/20,000/33,000
GT Individual: £16,000/25,000/40,000
GT: £75,000/100,000/125,000

^{Prices correct at date of original publication}

*USA/EU prices higher than UK

BMW M3 (E36) history

1992 E36 M3 two-door Coupé launched

1994 Driver’s airbag; Convertible added

1994 Saloon added; 295bhp M3 GT special edition: 356 built in BRG, LHD only (plus 50 UK-only RHD GT Individuals in 1995)

1995 Evo: 3.2-litre double-VANOS engine, six-speed ’box, uprated suspension/brakes

1996 Facelift: grille, airbag steering wheel; US gets 3.2, but still 240bhp/five-speed

1997 Side airbags; SMG (Sequential Manual Gearbox) option (1998 in RHD)

1998 Saloon/Coupé dropped; GT Imola Individual edition (200 sold, 50 RHD UK)

1999 Convertible production ends

The owner’s view

Serial performance-car owner Al Franks was delighted to pick up this 1996 Evo Convertible in Manchester three years ago.

“I’ve had 60-plus cars and tend to get bored and move on, but I’m keeping this BMW E36.

“I think it was owned by a 1990s rapper: there’s a PlayStation in the glovebox and a big extra speaker below the rear armrest; it’s got the optional mahogany trim, too.

“I’ve had a lot of M3s and also own an E30 and an E46. My intention when buying the Convertible was to use it as a weekend family car.

“The hood wasn’t working when I got it – I spent £400 with a specialist to find a hidden fuse!

“Last winter, I spent £6000 getting the underside sorted – stripped back and painted to factory spec, with all oils changed, gaskets replaced, new nuts and bolts – so now I’m not planning to use it as much.

“The E36 isn’t as good a driver’s car as the E46, but it’s still a lot of fun and its looks are improving with time.”

Also consider

The Audi S2 (left) and Maserati Ghibli are alternative buys

AUDI S2

Also sold as a saloon and estate, and upped to 230bhp with a six-speed ’box when the M3 was launched, the four-wheel-drive S2 was a bit slower. Potent (and pricey) RS2 outpaced the Evo.

Sold 1991-’95 • No. built 9488 • Price now £6-20,000*

MASERATI GHIBLI

Fast, with a 280-325bhp twin-turbo V6, Connolly leather and elm wood trim, the Ghibli was held back by dated looks and the reputation for unreliability of its Biturbo predecessor.

Sold 1992-’98 • No. built 2337 • Price now £10-30,000*

^{*Prices correct at date of original publication}

**BMW M3 (E36): the Classic & Sports Car verdict**

BMW chose a front-mounted straight-six in a rear-wheel-drive shell with 50:50 weight distribution for one reason: driver enjoyment.

Modifications are common, but often have adverse knock-on effects and rarely suit the next keeper – plus an unmodified car is less likely to have been abused.

Look for service history and evidence of recent pampering, and don’t be too hung up on model choice if you just want to enjoy driving a BMW M3.

FOR

Still fairly priced
There’s great club and specialist support
Good fuel economy
Everyday reliability
Space for a family

AGAINST

Multiple tricky rust spots
A high level of mechanical complexity, especially with the dual VANOS system, will detract from the appeal if you get a neglected car

BMW M3 (E36) specifications

Sold/number built 1992-’99/33,516
Construction steel monocoque
Engine iron-block, alloy-head, dohc 2990/3201cc ‘six’, Bosch multi-point fuel injection
Max power 286bhp @ 7000rpm to 321bhp @ 7400rpm
Max torque 236lb ft @ 3600rpm to 258lb ft @ 3250rpm
Transmission five/six-speed ZF/Getrag manual or six-speed SMG, RWD via LSD
Suspension independent, at front by MacPherson struts rear multi-link, coil spring/damper units; anti-roll bar f/r
Steering power-assisted rack and pinion
Brakes vented discs, with servo and ABS
Length 14ft 6½in (4433mm)
Width 5ft 7in (1710mm)
Height 4ft 5¾in (1366mm)
Wheelbase 8ft 10¼in (2700mm)
Weight 3236-3476lb (1471-1580kg)
0-60mph 5.7-5.3 secs
Top speed 155-162mph
Mpg 23-33
Price new £37,460-42,980 (Saloon-Convertible, 1996)