BMW 3 Series (E36) Review & Buying Guide (1990-2000)

• The E36 3 Series was the third generation of BMW’s compact saloon
• Over three million were produced between 1990-2000
• The E36 is 4.4 metres long, 1.7 metres wide and weighs between 1175-1635kg
• Power ranges from 90hp in the basic 318tds to 321hp in the 3.2-litre M3 Evolution
• The E36 was the first 3 Series to be offered in a hatchback bodystyle

BMW had an almighty task on its hands when designing the 3 Series that would take the brand into the 1990s. The E36 generation 3 Series was the result; moving away from the traditional design language of the 1970s and 80s without losing the charm that made its E30 predecessor so desirable. The now-iconic quad round headlights, strong shoulder line and sonorous engines had to be respected, and the E36 did a good job of bringing them all up to date.

Available as a four-door saloon and a two-door coupe from launch, BMW added a convertible model to the range in 1993, followed shortly after by the ‘Touring’ estate and ‘Compact’ hatchback in 1994 to complete the lineup.

Even the most basic E36 was seen as a sporty car to drive when compared to the rest of its alternatives. This was a key selling point for the E36, as the 3 Series was the entry-level model in the Bavarian brand’s lineup – and its performance did wonders for BMW’s reputation.

The E36 was unilaterally praised at launch as the clear compact car of choice, regardless of engine or trim level. The most basic 316i – with a 1.6-litre, four-cylinder petrol engine – was unlikely to thrill anyone, but 100hp in an economical car was good going in 1990. The range-topping 328i was introduced in 1995 with a 2.8-litre six-cylinder engine producing 193hp.

For speed enthusiasts, the M3 was introduced in 1992 with a 286hp, 3.0-litre high-performance engine under the bonnet. Whereas the first generation M3 – the E30 – was designed to go racing, the E36 M3 was intended to be a sports car for the road. The dual-overhead cam engine, designated ‘S50’, was leaps and bounds ahead of the previous M3’s four-cylinder.

A 7200rpm rev-limit, individual throttle bodies and more efficient air intake and exhaust all contributed to a 0-62mph time of 5.5 seconds, and unlike its predecessor the E36 M3 was available as a coupe, saloon or convertible.

Is the BMW E36 3 Series a good car?

Pros

• Classic BMW design
• Great engine options
• Fantastic handling and comfort

Cons

• Rusty rear arches are common
• Many badly modified examples
• Sportier models are getting expensive

The BMW E36 might be one of the best examples of a ‘usable classic’ out there at the moment, with a strong mix of reliability, desirability, practicality and performance. It’s not too big for tight cities, but it’s got plenty of space inside for five people – especially as an estate – and its chiseled looks attract a lot of positive attention from passers-by.

It may have lost the iconic ‘headlights-in-grille’ that BMW was known for, but a bluff front end with quad-headlights set behind then-new glass covers brought the classic BMW design bang up to date in 1990. A sportier shoulder-line and smoother shape helped, and for the first time the two-door 3 Series was a proper coupe with a rakish roofline.

The interior was also a cut above its predecessor, with a swoopy dashboard that curved to face the driver and simple, well laid-out controls for the heater and radio. It’s a spacious interior, but rear seats don’t fold on saloon, coupe and convertible models – and BMW cupholders of this generation are absolutely useless.

Being the ‘perfect size’ is just part of the reason as to why the E36 is an easy car to drive. Well-weighted steering and a pleasant gear change were unilateral across the range, and a trick rear-suspension setup for the time meant that the E36 was just as grippy through faster bends as it was comfy on bad road surfaces.

Under the bonnet, early models feature the same engine options as the E30 which came before it – but these were all updated a few years into production. The advent of the 320i brought with it a new 2.0-litre six-cylinder engine which was much smoother than the launch engine, and with 150hp in a fairly light saloon it doesn’t struggle to keep up with new cars either.

Get your E36 on a nice country lane and you’ll understand why BMW was confident to stick with its ‘Ultimate Driving Machine’ slogan for all these years. It’s not hyper-agile, though on modern tyres there’s a surprisingly large amount of grip, but the E36 has so much feel through its thin steering wheel that it puts a lot of new cars to shame.

What to look out for

Being a BMW of this vintage, rust should be the top priority for any potential E36 owner to look out for. The front and rear wheel arches are particularly susceptible to oxidation, as well as around the sunroof – if so equipped – and the boot surround. Sport models should have extra attention paid to the jacking points and sills, as dirt and grime likes to build up behind the aggressive side skirts.

On the subject of Sport models, pay close attention to an E36’s receipts and try to get information from the VIN number if you can. Non-genuine ‘Sport’ bumpers, side skirts and spoilers are 10-a-penny and can be hard to distinguish from original items – meaning there are a lot of SE cars pretending to be Sport models out there.

Have a look at the fit of the undertray and wheel arch liners for some more certainty, and make sure the original body-colour insert is in place in the lower grille as they’re a nightmare to get ahold of if missing. Dings and dents to the bumpers can be pricey if you want to maintain a concours example, as BMW Sport bumpers are much pricier than aftermarket parts.

E36 interiors are affected most by heat, with trims warping and coming loose in some models and door cards coming off in others. Replacement trim clips will sort most of these issues, but a big one to look out for is the condition of a convertible model’s roof. Make sure it opens smoothly, and most importantly that the tonneau cover latches down correctly as they can be a pain to put right.

One of the biggest dangers to BMWs of the 90s are their owners, unfortunately. The term ‘Ultimate Driving Machine’ brought with it a bunch of enthusiasts who more often than not thought they were the ‘Ultimate Drivers’. As a result, many E36s – especially 325i and 328i models – have been badly modified or abused on track days over the years.

Try to inspect the bushes and arms in the suspension if you can, as harder-driven but poorly maintained cars will often show signs of wear and tear in these areas. Service history is key to an E36’s engine, as they’re generally reliable things.

Expect weeping oil gaskets as with any 90s BMW, but ideally there will be receipts to show that they’ve been changed at some point in the car’s life. Variable valve-timing faults (VANOS in BMW speak), electrical niggles and coolant system issues are to be expected to pop up in an E36’s lifetime so again, check to see if there are receipts for repairs.

Manual cars have very robust transmissions, but the automatics are much more fickle things. Make sure that high-mileage or early production automatics have had a gearbox service done. If not, budget for this in your ownership as BMW’s claim of ‘lifetime gearbox oil’ is utter nonsense.

The E36 3 Series was available in a range of bodystyles

Which is the best one to buy?

There are so many E36 variations that it’s impossible to recommend a single model, but if you’re after a stylish, alternative commuter car then a 318i or 320i will do the trick. If you want something sportier with a little pep in its step, a 325i or 328i would be the best choice – especially in Sport guise. Be prepared to pay over double the price of a lesser-engined car, especially for a coupe or convertible.

Pre-facelift cars will be better for those who want a more ‘old-school’ feel to their classic, whereas post-1995 cars have smoother engines. Collectors will immediately be drawn to an M3, but they’re a different kettle of fish entirely – especially when talking about the limited-edition models.

Diesels make for very economical daily drivers, but the engines are uninspiring versus the petrol models and dull the E36s charm a little. No E36 model is ULEZ or Clean air Zone exempt, which is something to factor in.

BMW E36 3 Series price guide

If you’re feeling brave there are a decent number of E36s floating about on various second-hand marketplaces for as little as £1,500, though engine choices and trim levels are as varied as service history and rust spots in the low-thousands.

Larger-engine pre-facelifts coupes such as the 325i come closer to the £10,000 mark but it’s the low-mileage, un-modified and full service history 328i Sports which command the largest premiums with examples selling for up to £20,000. Rare colours, ‘Individual’ interior trims and OEM BBS wheels will bump up the price of an E36, as will a hard top roof for a convertible.

A leggy M3 convertible can start at around £16,000 with concours M3 coupe ‘Evolution’ cars selling for closer to £30,000.

E36 History

• 1990. BMW E36 3 Series is introduced as a Saloon and Coupe
• 1992. M3 Saloon and Coupe are introduced with a 3.0-litre engine
• 1993. 3 Series and M3 Convertible are added to the range
• 1994. Touring estate and Compact hatchback models complete the E36 lineup
• 1995. 328i 3 Series flagship replaces the 325i, and the M3 receives a 3.2-litre engine
• 1997. E36 facelift is introduced with curvier kidney grilles and interior tweaks
• 1999. E36 is replaced by the E46 3 Series

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

Click here to follow us on WhatsApp, where you can keep up-to-date with all the latest news, reviews, advice guides and videos.