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BMW M3 (E36) buying guide, history and review

Replacing the much-loved E30 3-Series was not an enviable task but, with 1990’s E36, BMW proved that it could hit a particularly stylish nail on the head. The real conundrum was just how the M Sport division was going to do likewise with the M3.

Unlike the E30, its replacement was less concerned about being homologated as a racing car, and more focused on being a well-rounded road car. The new M3 arrived in 1992, and its defining character shift was a switch to six-cylinder power. The 3.0-litre S50 engine is smooth, torquey and likes to rev thanks to ‘Vanos’ variable camshaft timing. Individual throttle bodies mean that it sounds phenomenal doing it.

Producing 286bhp out of the box, the E36 M3 was considerably more powerful than the outgoing E30. These early 3.0-litre cars drove the rear wheels through a five-speed manual gearbox. The coupé version came first, followed by a convertible and saloon during 1994. Despite its international launch in ’92, the USA didn’t get an E36 M3 until 1995, and due to the emissions regulations this came with a very different 240bhp engine.

BMW M3 E36

Later in 1995, BMW facelifted the entire E36 range, which also brought us the revised M3 Evo. Externally, the orange indicators were substituted for more modern-looking clear lenses, and there was a new deep-dish wheel design. The Evo’s engine was enlarged to 3.2-litres, gaining a new, improved ‘double Vanos’ set-up – which operated the variable valve timing on inlet and exhaust valves. The result was a useful jump in power to 317bhp. Also notable was the switch to a six-speed manual gearbox, and a new automated six-speed ‘SMG’ transmission, too.

Production of the saloon stopped at the end of 1997, with the coupé continuing for another year and Convertibles carrying on until the end of 1999.

Various special-edition and homologation cars were built along the way, too. The M3 GT was a stiffened and lightened version for Europe, of which 356 were built, with alloy doors, different rear wing and splitter, and a tuned 295bhp version of the 3.0-litre engine. All were British Racing Green. The UK got 50 right-hand-drive GTs too, although these were only fitted with the cosmetic upgrades.

Ten 325bhp M3 GTRs were built for Germany, to homologate the E36 for the German Touring Car series in 1994 – featuring alloy panels and wide arches. The Australian M3-R was a similar, albeit less extreme car, with 15 built in total. Generally the US-market cars are seen as a bit of a poor relation, but one exception is the M3 Lightweight. This was, in effect, a stripped-out road car, which lost a lot of sound deadening, air conditioning and big bulky seats, and gained a shorter final drive. US collectors love them.

Without the icon status of the earlier E30, the E36 is a relatively affordable way into M3 ownership. The formula set by this car has been the basis of every M3 since – and it’s still a hugely entertaining and capable car today. As with any M car, upkeep is not cheap, but tidy examples are still attainable. Make sure you get one that has been properly looked after, and enjoy it.

BMW M3 E36 Common problems

• Engines are tough, but a tired Vanos unit is a common problem. Located on the front of the engine, if it sounds noisy and the car has a lumpy idle, it will require an overhaul. Specialists can rebuild them.

• Corrosion is often a big issue, with wheelarches, sills and boot floor common areas. Rear suspension mounts can become weakened too.

• Worn-out bushes can drastically take the edge off the handling, but make sure replacements are OEM. Avoid lowered cars.

What to pay?

Early 3.0-litre cars are the entry point at about £10,000, but £15,000 should get a tidy 3.2. Condition plays a bigger role than spec, although early convertibles are usually the cheapest (£8000-20,000), with late-spec 3.2 Evo coupés the most desirable: perfect cars are up to £30,000, with dealers asking considerably more for exceptional collector-grade examples.

Saloons are rarer than coupés, but prices are roughly the same. The UK-spec GT carries a small premium; a full EU-spec version is up to 20% more. US Lightweights cost up to $100,000.