E36 M3 Buyers Guide: Introduction

Perennially the unloved M3, the E36 is regarded as the weak link in the M3 lineage by enthusiasts, sandwiched between the E30 and E46 high watermarks.

But that’s like being the least talented member of the Beatles, or the least attractive Victoria’s Secret model. The E36 M3 is still a performance car worthy of your time, however, buyers be warned - early E36’s are now thirty years old so there is a lot to consider if one is on your shopping list.

The E36 differed in many ways from its E30 predecessor. The first M3 car to feature the now signature straight six engine, the E36 is a more refined sporting GT with broader appeal than its race-bred predecessor. No constant homologation occurred to reign supreme in the DTM, and the M division was very open about the duality of the E36’s “racing technology in a car design for everyday use”. The E36 took the M3 mainstream.

The motoring media did not take kindly to BMW's change in philosophy, with many journalists pining for the agility and focus of the beloved E30 M3. History would prove BMW was more in touch with its customer base, as the greater refinement of the E36 led to an explosion in sales - the new car significantly outsold its predecessor, with a total of 71,000 E36 M3s rolling down the production line between 1992 and 1999.

Note - we are confident this is one of the most detailed E36 BMW M3 buyers guides available - the article runs to 5,500 words. We appreciate that you may be looking for something more specific, so we have included handy navigation links for your convenience;

E36 M3 Technical Highlights

M3 Evolution

Cosmetic Differences

What to look for;

Engine & VANOS

Servicing Requirements

Transmission

Suspension & Brakes

Bodywork & Rust

Interior & Electrical Gremlins

Buying considerations;

Potential Modifications

What to pay

Special Editions

Alternative Rivals

E36 M3 Buyers Guide: Technical Highlights

The core to the E36’s appeal was its world-class straight six engine, which replaced the race-bred, four-cylinder S14 utilised by the E30 M3. Designated S50, the new engine was derived from the 2.5-litre M50 straight six of the three and five series but featured extensive modifications.

With the capacity upped to 3 litres, the new engine featured individual throttle bodies and for the first time, introduced BMW's constantly variable valve timing on the intake camshaft, dubbed VANOS. The valvetrain also received bucket and shim-style solid lifters. Other modifications included a ported and polished cylinder head, a 10.8:1 compression ratio, Bosch Motronic 3.3 engine management system and a free-flowing exhaust system. This was mated to a five-speed manual transmission with a dual mass flywheel, driving the rear wheel via a (25 % locking) limited-slip differential.

The engine was good for 286 bhp at 7,000 rpm, meaning the performance took one giant leap for M-kind, with the 0-60 sprint dispatched in less than six seconds and a top speed limited to 155 mph. Despite such high performance, the S50 is ultra smooth and responsive, sounds fantastic when stretched, yet disappears into the background on a long journey. It is a fantastic all-round performance car engine.

Chassis-wise, the M3 featured BMW's trademark 50:50 weight distribution with a sophisticated multi-link ‘Z’ axle at the rear, with MacPherson struts up front. Compared to the regular 3-series, the M3 was lowered by 31mm with a wider track, firmer dampers and springs, thicker anti-roll bars and revised geometry.

Alternative Body Styles

Sadly there was no E36 M3 Touring, but alongside the coupe - which accounted for over two thirds of sales - from 1994 BMW sold the M3 various three series body shells;

Cabriolet:

All the better to hear that straight six. A shame the additional body strengthening added significant weight, blunting performance and handling. Loss of the Vader seats is the ultimate insult.

Saloon:

BMW decided the saloon should be pitched at the more comfort oriented customer, bizarrely deciding to equip the car with wooden trim. The four door body shell was also slightly less rigid than its coupe counterpart, meaning BMW decided to back off the spring rates a fraction. For some, this actually resulted in a sweeter driving experience. BMW also chose to fit the car with the 17” “Throwing Star” alloys from the E34 M5. Sadly, like the cabriolet, the saloon also deleted the wonderful Vader bucket seats, but a de-badged saloon in a dark hue has huge Q-car appeal. 

Compact:

A car that only ever existed in prototype form, BMW instead opted to build an M version of the Z3 roadster, but what a legendary hot hatch an M3 Compact would have been.

E36 M3 Buyers Guide: 3.2 M3 Evolution (EURO)

In September of 1995, BMW introduced the E36 Evo to the European market, featuring an enhanced version of the straight six, commonly known as the S50B52. Engine capacity was now 3.2-litres courtesy of a bigger bore and increased stroke, while VANOS was now applied to both the intake and exhaust camshafts (dual-VANOS) and the compression ratio was also increased to 11.3:1. The Engine Management System was switched to the more powerful Siemens MSS50, which used three knock sensors. The rev limiter of the enhanced straight six was also raised from 7,200 rpm to 7,400 rpm. 

The changes upped the horsepower ante to 321 bhp, making the E36 Evo the first naturally aspirated production car to produce 100 bhp/litre, a feat shared with the McLaren F1. The torque output was also massaged, increasing to 258 lb-ft at 3,250 rpm (up from 236 lb-ft at 3,950 rpm). BMW also endowed the Evolution with a new six speed gearbox for enhanced cruising refinement and fuel efficiency. In 1997, the M division debuted the SMG I gearbox, an automated manual transmission which received mixed reviews.

At the time, the 321 bhp made the M3 Evolution BMW's fastest ever accelerating car, a dominion usually reserved for the flagship M5. In their road test, Autocar managed to record a 0-60 mph time of 5.3s and an impressive 12.2s 0-100mph time - dusting all rivals and even beating their recorded results for a Porsche 911 Carrera (993) by over a second. 

Alongside the new engine, the Evo received several noteworthy handling upgrades. The suspension and geometry was revised, featuring an increased front caster, firmer springs, and dampers. The hubs were strengthened, and the front anti-roll bars were connected to the struts to reduce weight. 

Additionally, a quicker steering ratio was implemented. Unlike the 3.0, this time around both the Saloon and Coupé models shared the same suspension setup, ensuring consistent performance characteristics. The braking system maintained the same size, but the Evo was equipped with two-piece ‘floating’ discs at the front, enhancing braking capabilities - BMW’s marketing department boasted of the M3s ability to brake from 62 mph to a standstill in 2.7 seconds.

Cosmetic Changes

So subtle are the cosmetic changes between the 3.0 and 3.2, it really is a case of spot the difference. The most obvious giveaway is the famous clear indicator lenses, first seen on AC Schnitzer touring cars before being adopted by the M Division. Many 3.0 owners were fans of the new look, retro-fitting parts, so you need to don your anorak and look for the more subtle clues. 

First up are fractionally more streamlined kidney grills, followed by the mesh covering the lower valence sprayed in black, rather than body colour. Next up, the signature sunflower alloys now had a polished surface finish, with the ten spoke version now coming in an identical design to the (previously an optional extra) five spokes. On the 3.0, the original ten spokes are much subtler. 

Another optional extra was also tweaked - the rear boot spoiler, which again featured a near identical design, but one which cleaved into the air a few millimetres higher. The black “BMW Motorsport” insert was also deleted in favour of an additional rear brake light.

It is also thought that the later car rode a few mm higher than the 3.0, however ultimately it’s actually far easier to look for the mechanical changes of the higher rpm limit or sixth ratio. Both gear knobs offered that geeky touch of M class by lighting up whenever the headlights were active. For the super anoraks, the 3.0 featured the M tricolour in the top left hand corner, whereas the Evo placed an M badge in the middle of the H-pattern display. 

One change can only be spotted via magnet - when introduced, the Evo featured aluminium doors, saving 15kg a side from the kerb weight, however these were soon quietly dropped as they were deemed too expensive by the bean counters.

3.0 desirable colours

Avus Blue

Daytona Violet

Dakar yellow for the brave

Desirable optional Extras;

• Sunroof

• Upgraded, forged 5-spoke “sunflower” alloys with 7.5” & 8.5” staggered widths

• Rear boot spoiler

• Leather seats

  
  

3.2 Evolution desirable colours

Estoril Blue

Techno Violet

Boston Green

E36 M3 Buyers Guide: What to look for 

Engine & VANOS

The S50 is well regarded as a very tough unit - especially in 3.0 single-VANOS format, which could stake a claim to being the most reliable BMW M engine of all time. Being chain driven, there are no concerns over cambelt changes and accurate timing issues. Some higher mileage examples may consume oil at a higher rate than anticipated, however this is typically a minor concern and can vary depending on individual engines. Regularly monitoring oil levels and performing timely oil changes can help mitigate potential issues.

Water pump failure is a confusing topic in the E36 M3 universe. Go online and you’ll see horror stories relating to floating or failing impellers causing all sorts of catastrophes if they travel a millimetre past 60,000 miles. But if you scrutinise the web address, you might notice each one ends in dot com - the plague of the water pump appears to be a problem exclusively related to the US-spec E36 M3, who’s pump features a plastic impeller. Euro-spec cars feature a metallic impeller that’s far more robust.

The 3.2 Evo however, does have one well known weakness - the dual VANOS system. Alongside Honda’s famous VTEC, VANOS was pioneering variable-valve-timing technology. The system was highly complex and to truly understand it you need a degree in mechanical engineering or be Einstein reincarnated, but we’ll try and give you an outline as it's a major component that can affect engine performance or be mis-diagnosed. To quote BMW - oil pressure, regulated by solenoids, acts on pistons, which in turn move gears in and out of a cup. These gears have helical teeth and as the angled gears move in and out, these angled teeth change the angle of the camshaft, advancing or retarding the timing. 

This gave BMW more precise control over the opening and closing of the valves over the entire RPM range, resulting in much improved response, performance and emissions. Dirty, clogged, or improperly functioning VANOS solenoids will have a significant impact on horsepower, fuel efficiency and the overall driveability of the M3. 

The problem with VANOS is there are no obvious, sudden symptoms to warn you - failure is gradual, meaning it can be difficult to detect any erosion in performance. The biggest clues centre around a rough idle, with the engine exhibiting noticeable vibrations or fluctuations in RPM when at a standstill. Alongside this, the car will likely suffer from hesitation or stumbling during wide open throttle - especially under 4,000rpm.

A malfunctioning VANOS unit can also contribute to increased fuel consumption. The M3 is surprisingly fuel efficient, so an average of less than 20 MPG should be cause for investigation. Although the VANOS is not electronically connected to the ECU, in some cases, a failing VANOS unit may trigger a Check Engine Light.

As a general rule, you can expect the seals in the solenoids to last approximately 50,000 miles. The good news is the seals can be refreshed by a competent home mechanic. We strongly recommend that you purchase a proper kit from the likes of renown BMW specialists such as Mr VANOS (insert link) which you’ll be relieved to know are highly affordable.

Around 70,000 miles is where VANOS can become scary. It is strongly recommended to have a full refurbishment done by this point, as the cost of refurbing or even replacing a dead VANOS unit can result in a £2,000 bill, especially if the car has developed the dreaded, audible ‘growling’ noise. On the bright side, the issues with the dual VANOS system were discovered during the E36’s production lifespan, meaning many cars were repaired under warranty. Given the age of the E36 M3 however, we’d expect most cars to be expecting, or to have undergone a second rebuild.

For this reason, arguments rage online as to whether the extra performance of the 3.2 with its dual-VANOS is worth it given the potential expense involved. For us, the benefits and cache of the Evo is worth the risk, however we still appreciate the case for the 3.0 as we believe it actually sounds better, with a deeper, richer tone. 

For the record, the 3.0 isn’t immune to VANOS issues, with the piston seals usually being the culprit for any reliability woes. However, the single VANOS is a far stronger unit overall than its later counterpart.

Servicing Requirements

Whilst robust, healthy servicing is vital to maintain the performance of an S50 engine. All E36 display a handy servicing countdown indicator whenever the ignition is turned on. BMW specifies a rotating schedule;

• Oil service - expect to change the oil on an E36 M3 annually, or every 12,000 miles

• Inspection I service - includes oil and filter change top up of fluids where necessary, micro/pollen filter and more in-depth service checks such as removing the wheels and checking brakes and suspension components. Expect to pay £250-£300+ at an independent specialist.

• Intermediate oil service

• Inspection II service - as the Inspection I, with the addition of spark plugs. At this time, we highly recommend you include the all important valve clearances adjustment, which can greatly affect engine performance if neglected. If the valve clearances are out, the S50 engine can lose up to 20 bhp, if not more. Mix that in with a malfunctioning VANOS, and you’ll have one very undernourished M3! Expect to pay £350-£400+ for an Inspection II.

• Repeat schedule

  
  

There is no need to be afraid of a higher mileage M3 providing the above servicing schedule has been adhered to. The E36 is such a broadly talented car it's no wonder many have clocked up over 140,000 miles.

Transmission

Another area where the earlier car is more robust is the manual transmission. The five-speeder in the 3.0 is pretty much bulletproof, whereas the six speed unit in the Evolution can suffer from synchro wear between second and third gear. 

The clutch hydraulic system, including the master cylinder and slave cylinder, can experience leaks or failures over time. This can result in a loss of clutch engagement or difficulty in shifting gears. Inspecting the clutch hydraulic components and checking for any signs of leakage or fluid loss is advisable when evaluating a used E36 M3.

As you’ll likely know, the SMG gearbox isn’t seen as the most reliable of transmissions. A world first, beating Ferrari’s F1 automated manual to the market, SMG I allows owners to indulge in secret touring car style fantasies with its pull backwards to change up, and press forwards to shift down gear lever. With the absence of a clutch pedal (the action was robotised by a computer), SMG I permitted full throttle upshifts, increasing performance. The system will also automatically rev match on downshifts. However, some drivers preferred the traditional manual gearbox for its direct engagement and overall driving involvement.

The transmission represented a technological advancement in transmission technology, but it did have its limitations and requires proper understanding and maintenance to ensure optimal performance and longevity. There are three key areas of concern - the hydraulic pump, solenoids and sensors, and the gearbox actuator.

Suspension & Brakes

Despite their poor reputation amongst the track day fraternity, the brakes on the E36 M3 are relatively trouble free. Callipers can seize, however refurbished units are relatively affordable. 

Where the big bill comes from is corroded brake lines, replacement of which is a labour intensive job because the exhaust and fuel tank has to be removed to gain access. Expect to pay north of £750 for this work.

As we’ve already mentioned, the E36 is three decades old now, so it’s inevitable many suspension components will be well past their sell by date, in particular the rubber bushes, front wishbone ball joints and track rod ends. One specific bush can become a nightmare to replace - contained within the rear trailing arm - which requires a special BMW tool to remove. Otherwise you’ll have to cut the sucker out with an electric saw, taking your knuckles down to the bone and developing Tourette's in the process.

Another area to pay close attention to is the rear damper mounts. BMW built the car with paper thin steel in this area, and the inevitable happens. Aftermarket reinforcement plates are available to eliminate the issue. A good kerbside test is to grab the rear arch and heave the car upwards, listening for any tell-tale noise or groans from the suspension. Before you do so however, make sure you get permission from the owner for one specific reason…