AutoTrader Find of the Week: Get a BMW E46 M3 While You Can

Why has it taken so long for the E46 to get its flowers?

Perhaps it’s because there have been many “evolutions” of this car in such a relatively short period of time. While it took BMW 20 years to complete the first three generations of the M3, in that same time, we’ve effectively had eight cars that you could cite as being a continuation of the E46 M3; three generations of M3 and two of its two-door spin off, the M4 — but also one 1M and two M2s — which could both be argued are more faithful continuations of the E46.

The E46 M3 currently marks the exact mid-point in the development of BMW’s M sport touring cars. As such, it embodies elements of the cars it began with — both heavy, grand touring sports sedans, and more agile sport compact coupes. And so I would submit that it was just sort of forgotten. After all, if you really wanted a classic BMW M3, you got an E30.

The E46’s styling certainly didn’t help its staying power, either. The E46 M3 embodies an aesthetic that was so painfully ubiquitous by its 2006 exit date, that it was beyond stagnant — it was passé. And forgettable.

However, in 2025, enough time seems to have passed that people are beginning to appreciate the E46 M3 for what it was — and perhaps beginning to feel a strong sense of nostalgia for it now that even the youngest examples are 20 years old.

Its new-millennia styling now seems restrained, minimalist, and elegant. And with its comparable lack of modern driver aides, you could arguably call it the last “analogue” M3. What is inarguable is the fact that it is the last naturally aspirated six-cylinder M3 — with its 3.2-litre, 338-horsepower S54 engine.

When nostalgia, a great reputation, and a dash of cultural presence begin to converge in the car world, prices tend to rise. So it’s no wonder the most desirable, collectable, and clean examples of E46 M3s are being slapped with price tags tipping over six digits.

Take, for example, this absolutely immaculate 2006 M3 Competition Package for sale through Auto West Preowned and listed on AutoTrader.

It may not be showroom new with just over 32,000 original kilometres on the odometer. Nor is it fully original, having been modified with an engine tune, new intake and exhaust, and strut tower brace by Dinan, a well-known North American BMW tuner that has also added signature badging. But finished in the iconic Titanium Silver Metallic, and as well-kept and maintained as it gets, this 20-year-old Bimmer still commands an asking price of $105,900.

Why bring up the most expensive example first? It shows that demand for this model is creeping up. And inevitably, as the most desirable models are priced out of obtainability for the majority of the market, focus will begin to shift and trickle down to less desirable models, which will drive up prices.

Think about how classic HEMI Mopars eventually made even humble 340 B-bodies worth stupid money. Or how the love of the Nissan Skyline GT-R is driving lesser GT-T variants into triple-figure cars.

This trickle-down effect can be a leading cause of the “bathtub curve” in which a car massively depreciates in value, but then eventually begins to climb back up in value when a number of stacked factors begin to once again drive high demand.

And like HEMI Mopars and forbidden fruit halo Japanese Domestic Market (JDM) cars, I think the E46 M3 is poised for a boom in demand — and why not? After all, it certainly happened to the original E30 M3.

Of course, factors such as condition and options will affect the price. You can also expect convertibles and automatic transmissions to subtract value. But in general, since 2019, there’s been about a 30 per cent increase in the value of E46 M3s — and there are no signs of that upward trend slowing down.

Start poking around for listings on AutoTrader, and you’ll definitely find that the market is trending up on E46s. Examples all seem to be about 15 to 30 per cent more expensive than they were five or six years ago. Luckily, though, there are still examples to be had at just about every price point.

Looking for the halo Competition Package with a six-speed manual? Here’s an example in Interlagos blue for sale in Brossard, Que., (pictured above). It may have done 167,000 km, but it's been well cared for and is $50,000 cheaper than that silver car we cited at the top of the article.

If you’re not super picky on options, there are some bargains to be had.

Take for example this base 2005 coupe for sale in Mississauga, Ont., (pictured below). It may not feature the Competition Package or the six-speed manual transmission, but it’s done little more than 60,000 km, comes with comprehensive service records, and at an asking price just under $44,000, it can be had for essentially the same out-the-door price as a 2025 Ford Mustang EcoBoost (add literally any options to that Mustang and this M3 is a real bargain).

Speaking of bargains, how about this 2002 Steel Grey coupe for sale in Edmonton, Alta., (pictured below)? Less than 100,000 km, summer-driven only, never tracked, bone stock, and the private seller is only asking $28,000. That’s a BMW M3 for less than the price of a new Toyota GR86. And unlike the new GR86, the M3 could likely be an appreciating asset in the short term.

The market has been overlooking the E46 M3 for a while. But if it ends up having a massive resurgence as it seems poised to do, I think you’ll ultimately have Millennials to thank. Because beyond its classic status, reputation, and driving experience, Millennials are remembering that for our generation, the E46 M3 was a pop culture icon. And that overrides any sense of buying logic. The heart will want what it wants.

Millennials frequently bemoan that North America never got the Nissan Skyline GT-R. But, in many ways, the E46 M3 was the GT-R we could have in North America (the parallels between the R34 GT-R and E46 M3 are legion — both are high-performance variants of humdrum commuter saloons, both tried to live up to the reputation of the original by following up an awkward middle child, both feature inline six-cylinder engines making roughly the same power).

Sure, the GT-R may have had Paul Walker and the Fast and the Furious. But I still remember rushing home from school to unbox and plug in my brand new Xbox 360. Gracing the cover of my first game purchase; Need for Speed: Most Wanted was a BMW E46 M3 GTR — which is now commonly referred to as the “Most Wanted M3.”

That’s what the E46 is to an entire generation: the “Most Wanted M3.”

For that reason alone, I would submit that E46 prices are only going to climb higher. So you had better get one now, while you still can.