(Updated 10/22/2026) There’s no shortage of debate among BMW enthusiasts over which generation of the 3 Series deserves the title of the last great one. The E46, while later generations are sometimes criticized for growing too big and too soft. Let’s revisit a contemporary review of the 328i, written when its combination of a silky inline-six, a five-speed manual, and everyday practicality made a compelling case for the four-door sports car.
Many people believe that the E46 was the last great 3 Series BMW, deriding the subsequent E90 and F30 generations as too big and soft. Of course, which generation was the “last great one” varies widely, but any generation before the F30 seems to qualify.
I mention below that only the sedan was redesigned, while the coupe, convertible and hatchback will follow in 2000. There wasn’t a lot of interest in the 318ti (although I’d love to find one in decent condition with reasonable mileage today), so BMW decided late that the E46 hatchback wasn’t going to be imported. Coincidentally, it’s around this time that Mercedes chose to expand the C-Class with the introduction of a 2-door hatchback with an available manual transmission. It generated about the same amount of interest and also only lasted one generation here.
The following review was written on July 28, 1999.
Although direct competitors, in many ways BMW and Mercedes appeal to completely different people. For example, the Mercedes C-Class, available only as a sedan with an automatic transmission, seems to appeal to those people that lust after the bigger E- and S-Classes but can’t scrape together the requisite amount of cash. The BMW 3 Series, on the other hand, comes in a wide range of body styles and more than a few buyers actually choose it over the bigger Bimmers because they prefer its smaller size, available five-speed manual and sports car-like reflexes.
Not many companies can get away with having their loss-leader be an excellent car in its own right. So when it came time to redesign the 3-series for this year, BMW took an “evolutionary” approach. The “chiseled from a block of stone” look has been replaced with more curves, a steeper rake to the rear window, a larger twin-kidney grill integrated into the hood, and larger head lamps. Inside, BMW continues to refine the little sedan. Forget black leatherette and hard plastic, today’s BMW has soft beige leather, a suede-like material covering the dash, and optional wood trim. Only the 323i and 328i sedans have been redesigned for 1999. The coupe, convertible and hatchback will follow shortly.
One drive, however, will dissuade anybody who thinks BMW has gone soft. The 193-horsepower, 2.8-liter inline six-cylinder engine and five-speed manual work together in kind of a Bonnie-and-Clyde-like fashion to heavily persuade you to break the law. If you could close your eyes, driving strictly by the sweet sounds of the engine, the fine precision of the transmission, and the feel of four fat tires planted firmly on the road, you would swear that this is a sports car. Until you open them and realize that your ass isn’t two-inches from the pavement, you’re not staring at the exhaust pipe of the car in front of you, and, get this, you can actually carry four passengers (in a pinch).
So if you’re having trouble decided between the Mercedes and the BMW, ask yourself: Do I want a small luxury sedan or a four-door sports car?
For more information contact 1-800-334-4BMW
SPECIFICATIONS
Type: Four-door Sedan
Engine: 193-horsepower, 2.8 liter inline six
Transmission: Five-speed Manual
EPA Mileage: 20 city/29 highway
Retail Price: $37,345
Note: Another in a series of my reviews that appeared in the online version of African Americans On Wheels, a now defunct automotive magazine that was included as an insert in the Sunday newspapers of major cities.
The last of the good looking BMW’s in my opinion.
+1. Agreed!
Nicely said in 350 words. The difference between the Mercedes C and 3Series then really was quite stark. No more.
Much obliged!
The aesthetics on the E46 haven’t aged a day, I always think of them as being 2000s era designs but I forgot they actually did debut in the very late 90s, the last decade of good car design.
I have an E46 (330 Ci) and a F30 (330e hybrid) and I love them both. For different reasons of course. I really think the F30 is a great car even if I would not get rid of my cabrio for nothing in the world. Or maybe for a crazy amount of money I think nobody would be willing to spend for that car.
Here is the cabrio…
Nice
…and the hybrid
I agree about the 318ti; I liked it well enough I’d have wanted one if I’d not already gone over to Alfas. I was a bit surprised to read that it had been a sales dud; seemed like within a week of its introduction, every Nashville yuppie was driving one around Green Hills. My wife was mourning her totaled 2002, and hated most of the 3-Series cars, but that one she liked.
I’ve always wanted a 318ti as well, not least as I much prefer the simpler dashboard they used to reduce costs vs. the regular E36 dash.
I’m still kicking myself for not rolling the dice on one listed locally about a decade ago for well under $2k with a mysterious no-start issue but otherwise fine cosmetic condition; I’d seen and admired that exact car plenty around the neighborhood of my work office, and having owned a ’79 Lancia for over 20 years I’m no stranger to wrenching or diagnosing electrical gremlins.
I have only ever driven one E46 and it was a 316i. I was surprised at how lively and strong the engine felt. Everything just solid and logical in typical BMW fashion. With a Bimmer you always look at thebadge on the back because they evoke these emotions of fast driving, but I learned than that even a 316i is quite the car.
I had an E46; a 2001 325xi wagon in white, which for me was the only color. The brochure said it was possibly the most beautiful wagon in the world, and I didn’t disagree. There has been nothing sweeter for me automobile-wise, than driving that car (it had the five-speed) on a winding road. The normally-aspirated six was turbine smooth and sounded like nothing else before or since.
Visited a buddy in San Diego a few years back with one of these he scooped up for $1500 as a beater (his only car actually). A bunch of stuff was in-op (rear windows, windshield washer), rattly front suspension bushings and I suspect a worn driveshaft center support (strong vibrations at certain loads/speeds). But despite all that neglect the car still drove great, the engine was jet smooth and nice to listen to. I wouldn’t mind a 5spd one myself as a beater.
It seems like the year 2000 was a high water time for cars. Cars like the Honda Accord and Toyota Camry seemed to last a very long time in these generations. Even GM stuff was not too terrible at the time. We have definitely seen a decline in quality. In addition, cars have become too large. The featured BMW is, in my opinion, the perfect size. Now the three series is a bloated two tonne abomination.
Car manufacturers can’t help the bloating. A 180″ wide touchscreen infotainment center is the bare minimum on new cars. At some point, it’ll just project the “WIDE LOAD” sign on the road commonly reserved for semi trucks hauling double-wides.
Note to the manufacturers – just because sedans can DRIVE like sports cars doesn’t mean we all want the LOOK of a sedan,
Kind of a moot point anymore. With increasing frequency they’re thinking no sedans either and a five-door Crossover with a sloped, less-roomy rear roofline qualifies as a “coupe”
I concur. The E46 is not only peak 3 Series. I consider it peak BMW.
BMW of this era do have a certain timeless look about them. The E38 7 series and E39 5 series are my favorite gens of those sedans as well. Personally the 530i, manual, sport package, burgandy or hunter green with the tan leather/wood package would have been what I bought at this time new if I had the $$$$ Or maybe a 330i coupe, silver, red leather, 5 speed, sport package. The coupe is one hell of a looker
Peak BMW. Downhill from there, with a few exceptions.