The fenders are almost one inch wider all around, with model-specific grilles found on both sides. Most of the changes are subtle, but easy to spot if you know what to look for. Like most M-badged BMWs, the E46 M3 doesn’t actually look too different from a standard 3-Series of the era. In the rear sits a purely mechanical clutch-type limited-slip differential.

A year into production, BMW added the second iteration of its Sequential Manual Gearbox (SMG) as an option for those who preferred shifting with paddles. Power is sent to the rear wheels via a six-speed Getrag 420G manual gearbox-the same unit found in the E39 M5. This motor can also be found in the Z4 M and later versions of the Z3 M. There’s also a one-piece aluminum head casting to save weight and an oil scavenging pump to keep oil flowing during cornering. That’s thanks to things like an increased bore, new camshafts, a higher compression ratio, individual throttle bodies, and a VANOS (a German acronym for variable nockenwellen steuerung) solenoid attached to the front of the engine that uses oil pressure to adjust cam timing. An evolution of the Euro-model E36 M3’s S50B32 straight-six, it displaces 3.2 liters and made 333 horsepower and 262 lb-ft of torque when new. Under the hood sits one of BMW’s most iconic motors, the S54.

In our initial 2001 test, we were able to clock a 0-60 time of just 4.7 seconds, and a quarter-mile of 13.3 seconds at 106 mph-not bad for a car that’s now two decades old. Based on the standard 3-Series, it was longer, wider, heavier, and more powerful than its predecessor, the E36. The E46 M3 was first shown to the public as a concept at the 1999 Frankfurt Auto Show in Germany, before making its debut as a production vehicle at Geneva the following March. Thinking about picking up an E46 M3 of your own? Great choice. Despite the car’s rising status as a collector’s item, prices have remained reasonable over the years, meaning pretty much anyone can own one. Its stylish, understated looks, combined with a world-class straight-six engine and expertly tuned chassis dynamics, make it a true joy to drive.

Some people consider the E46-generation BMW M3 the greatest M car ever built.

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