I don't own one, but I'm an active BMWCCA member so I come across them often. Seems like a great car, but the engine problems, which supposedly have been cured on the brand new ones, still scare me.
Just read of another (the second) recall on the S54 engine. Seems the cure is a new engine management system tweak that drops red-line from 8k to 7.5k in first gear. Also, SMGII is glitchy at cruising speeds-great on the track. Hold out for SMGIII if you can. Also, the next gen M3 is due out soon and it will make the value of an E46 M3 drop like a stone as it promises to be far superior in speed, handling, and reliability. Unfortunately, it will also be a Bangled version of the current M3 which is a shame. Think little 5 series.
With traction control and the right rubber you'll find the E46 platform acceptable at best. Not great by any measure when compared to any front/all wheel drive car. If you want a great car that will hang with the E46 M3, look no further than the E46 330pp. It is very close and in the right hands, with a few minor mods, can hang with the M3-even on the track. You just have to get used to 4 doors. This is THE car for BMW buyers in the know. Shhhh
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