BMW M3 E36 Review (1992-1999)

Pros

  • Secure handling and a surprisingly comfortable ride

  • Three body styles to suit different buyers

  • The most discreet-looking of all the M3 generations

Cons

  • These cars are now over 20 years old, so take your time and find a car that's been looked after

  • SMG versions don't match the involvement of manual models

  • The convertible is less rigid, and so doesn't drive as well as the coupe and saloon

4/5Overall score
Practicality
Driving
Tech and equipment
Running costs

The CarGurus verdict

When it was new the E36 M3 was much maligned for not being the same as the car it replaced. With the first generation of M3, BMW set the bar so high that the second E36 generation was initially going to struggle to find acceptance among the motoring press. However, BMW’s customers loved it, and driving one demonstrates the E36’s strength and depth of ability.

It’s still a pretty fast car, and with secure handling and a good ride it’s still a joy to punt along a winding road. With three practical bodystyles to choose from it’s now being viewed as a very usable end entertaining modern classic that can still be purchased for less than the cost of the cheapest new BMW 1 Series hatchback. We know which we’d rather be driving.

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What is the BMW M3?

When BMW launched the E36 M3 it had to answer a very difficult conundrum – how do you improve on perfection? Its predecessor, the original M3 that sold from 1986 to 1991, had been designed with one thing in mind – to win touring car championships in motorsport – and it did so the world over. Its road-going counterpart was revered as one of the finest road cars money could buy at more-or-less any price point. With a gruff but powerful four-cylinder engine, pumped up styling and divine handling characteristics, it was a hugely desirable performance car.

By way of contrast, the E36 M3 was designed exclusively as a road car, and with subtle looks it didn’t pull on the heart strings as much as the older, race-bred machine. On the other hand, it offered better passenger accommodation, was demonstrably faster and had safe and secure handling, with a decent ride and much improved refinement too. It was a better car than the E30 M3, but the press criticised it for lacking that joie de vivre that made the original such an absorbing car to drive.

In 2000, the E36 M3 was replaced by the E46 BMW M3, which we've reviewed here.

  • While the previous E30 M3 spawned several special editions – usually to homologate parts for racing – there were only two special edition models offered for the UK market in right-hand drive. The M3 GT Individual was based on the 3.0-litre model and had larger front and rear spoilers, British Racing Green paint and an interior with graphite birds eye maple trim along with some suspension improvements. The second was the Imola Individual, sometimes known as the GT2, which was a run out model based on the M3 Evo. It featured the larger spoilers, Imola red paint and a black and red interior. Just 50 of each were produced and are seen as desirable models today.
  • While the vast majority of E36 M3s featured either a five-speed or six-speed manual gearbox, there was an ‘automatic’ version, which launched in 1997, known as the SMG, the acronym standing for Sequential Manual Gearbox. It was quite advanced for its day and used the same manual gearbox as the standard car, but with the shifting taken care of by hydraulics and the deletion of the clutch pedal. It wasn’t hugely successful though, and is probably best avoided today.
  • Many M3s will have led a hard life, so it’s important to check a potential purchase very carefully, especially now prices are on the rise. Many cars were modified too, so look for a standard model. There are a plethora of BMW specialists to check over any potential purchase and in the long run this will be money well spent, as repairing a tired example could become very costly indeed.

  • If you want to stand out from the crowd: The E36 M3 coupe is a discreet machine, looking pretty much like a regular BMW 3 Series with a fancy set of alloy wheels, but if you’re not the shy retiring type there are a couple of options open to you. There were some colours unique to the M3, such as Dakar yellow, Daytona violet, Imola red and Estoril blue, which weren’t available on the normal 3 Series models. Dakar yellow is particularly sought after today.
  • If you want the practical option: In four-door form the E36 M3 is not only hugely discreet, it’s also a very usable performance car. With five seats and ample luggage space it’ll happily put up with family duties or pottering to the shops, yet still has the ability to delight when travelling along a favourite back road.
  • If you want the best to drive: While the original 3.0-litre was a decent driver’s car, the later Evo model is the one to go for if ultimate thrills behind the wheel are your number one priority. It’s a little faster than the 3.0-litre; not by much, but its chassis is more rewarding, with sharper steering and improved feedback. The four-door drives just as well as the coupe, but avoid the convertible, as its less rigid structure makes it a less involving car to drive.
  • If you want wind-in-the-hair thrills: It has to be the convertible in either 3.0-litre or Evo form. Yes, it might not be quite as tack-sharp to drive, but it’s still pretty solid thanks to the extra stiffening that BMW added when it chopped the roof off. With the electric hood unfurled it’s a very attractive shape and allows you to hear that straight-six all the better. Search for the optional removable hard-top and it’s a pretty practical winter proposition too.
Bob Harper
Published 8 Sept 2021 by Bob Harper
Bob Harper used to work on cars for a living when they could still be fixed with spanners rather than a laptop. Once he'd had enough of getting his hands dirty, Bob became a service receptionist at a BMW dealer – he was the person you would shout at when your car had broken down. And when he'd had enough of that, Bob moved over to motoring journalism, writing for magazines and websites including BMW Car and CarGurus.

Main rivals

Body styles

  • Two-door coupe
  • Four-door saloon
  • Two-door convertible