BMW E36 3 Series: The Best Years And Models

Arguably, few cars are quite so good at being cars as the time-tested BMW 3 Series. Handsome, practical, versatile and fast enough to amass a huge following of dedicated gearheads, the humble 3 Series certainly does tick many boxes, and for many drivers. Older generations, such as the E21 and E30, may be more stylish, and perhaps more desirable for collectors, while newer generations, such as the E46, are better equipped and much faster. However, the E36 boasts a unique charm all of its own. It dominated the entirety of the 1990s, a period of time in which car manufacturers were blending impressive new technology with old-school engineering, and this shows through with the BMW E36 3 Series. This charm shines through in different ways throughout the lineup, so, we’ve elected to look through how the different E36 years and variations impress, dependent upon the desired use.

Unless stated otherwise, all information is sourced from BMW’s media site and/or official press material. Pricing data is courtesy of Classic.com.

Best E36 For Daily Driving: 328i Sedan

The 328i sedan is not the cheapest, the most spacious, and nor is it the fastest E36 available – so what makes it the best daily driver? Simply put, the BMW E36 sedan in 328i trim is a perfect compromise of everything you might want from a 3 Series BMW, offering just enough of everything you might want and need.

Starting inside, the BMW 328i E36 provides seating for five, and enough equipment to keep you both comfortable on a run and happy around town. For example, luxuries such as air-conditioning, heated leather seats, and that most old-fashioned of things – a radio, perhaps even with a CD player if you’re lucky, can be found within the cabin. Things get a little more exciting under the hood, as a fabulously smooth inline-six takes pride of place, providing a naturally aspirated 193 horsepower and 206 lb-ft of torque. It can be sent through a manual transmission too, if you please, or a more typical auto ‘box if you’d rather just cruise.

Depending upon which transmission you wind up with, the 328i sedan can return a combined average of either 19 (auto) or 20 (manual) mpg, based on the 1998 model year. That’s nothing in comparison to the 29 mpg on offer from a brand-new entry-level 330i sedan, but the E36 won’t cost you $45,000, unlike a new model would, so pick your battles.

To summarize, the E36 328i sedan is just an appealing blend of everything that makes the E36 such a desirable modern classic. If someone were to ask, ‘what is a BMW E36?’, this would likely be the best model to show them, as it encapsulates all the qualities that enthusiasts love about the third generation of the 3 Series perfectly. If you can snag a good one, it should serve you well as a characterful and rewarding daily drive.

Best E36 Track Toy: E36 M3 Coupe

Various BMW E36 models end up as track car builds, and for good reason too, as everything about the car lends itself well to aggressive use. A lightweight chassis is key for maximizing what the engine has to offer, and with a healthy spread of powerful inline-six engines to choose from, it’s no surprise that so many end up as track car builds.

In order to give yourself a head start though, an E36 M3 is what you’ll need. Earlier cars were equipped with the S50 engine, whereas later models boasted a slightly larger S52, both outputting 240 horsepower in North American spec. While an automatic transmission was on offer, the manual should be high up on your list of priorities.

Even in standard guise, the E36 M3 will make for an enjoyable track car, but thanks to huge aftermarket support, the sky is the limit with how far you go. Chassis and handling mods are always a safe starting place with the E36, but there’s no shortage of power mods either, including both turbo and supercharging.

Best E36 Year For Reliability: 1993

Ask owners of later BMW 3 Series models what they think of the car’s reputation for reliability, and they may give you an unsavory answer. Complex iDrive systems, troublesome timing chains and pesky run-flat tires meant that maintenance was very much constant, as were repairs, too.

A very well engineered piece of machinery.

However, the older E36 really excels here, living up to traditional stereotypes of German cars. To establish which was the most reliable year for BMW’s E36, we took a look at the wealth of owner reviews on CarSurvey.org, in an effort to see just how durable and dependable these cars are to live with. In total, over 300 reviews have been left on the E36 in general, so this should represent the viewpoints of E36 owners quite well.

Supreme quality and performance.

By a small but still noticeable margin, 1993 stands out as the most reliable year of E36 to own. Out of 22 owners, 91% of them would happily buy a BMW again based on their ownership experience, and, out of 10, reliability of the model was rated at a seriously impressive 9. Furthermore, on Car Complaints, there are zero issues on record for the 1993 BMW 325i, one of the most popular variants at the time. So, out of all the BMW E36 years, 1993 stands out as a clear winner in terms of reliability.

Best E36 For Economy: 318i Manual

While older 3 Series generations are loved for their smooth six-cylinder engines, the E36 generation was also blessed with a small inline-four too, for the budget conscious. The 318i therefore lacks the addictive power delivery and impressive output of it’s larger-engine brothers, but it does make up for such losses in the economy department.

Packing just 138 horsepower and 129 lb-ft of torque, the 318i was never intended to impress with performance, but the flip-side of that is it does manage to deliver admirable fuel economy. According to the EPA, the 1994 model manages 23 mpg in manual guise or 22 mpg combined with the automatic. This combined figure means this is by far the most economical E36 on offer for the US market.

Best E36 For Practicality: Touring

Interestingly, and almost certainly surprisingly, the E36 Touring – sadly, not sold in America but now eligible for importing into the country – actually does not offer more trunk space than the E36 sedan, with both variants providing 15.4 cubic-feet of luggage room. That may make the Touring look a little redundant.

However, the space available with the Touring is actually more useful, and here’s why. That higher-opening hatch with window provides a much larger trunk opening, meaning taller and generally bulkier items can be hauled, in comparison to what’s possible with the sedan. Also, if equipped with a dog guard, pets can safely travel in the E36 Touring too, making this the ultimate option for family-friendly trips and munching up miles with everything, and everyone, you wish.

Sadly, BMW never developed an E36 M3 Touring, although it is available as an otherwise range-topping 328i, which delivers just shy of 200 horsepower – more than enough for a 30-year-old BMW Touring.

Most Exclusive E36: M3 Lightweight

This is not the E36 to have if you like blending into a crowd. Finished exclusively in white, adorned with flags BMW’s trademark colors, and sporting a wing large enough to challenge those of similar-era RUF models, the M3 Lightweight lives to make a statement.

The engine is rated identically to that of a typical M3, and coupled to a five-speed manual transmission, with a limited-slip differential thrown in for good measure. Lightweight alloy wheels and performance-orientated cloth seats continue the race-inspired theme, too. BMW only manufactured 126 examples of this striking E36, which makes it by far the most exclusive example of the model. They do command a small fortune when offered for sale though, usually around $100,000, although the very best examples can achieve double that figure.

Best E36 For Sunny Regions: Convertible

This is an easy choice to make. For swanning around by the beach, and simply soaking up the rays, the E36 convertible – in any trim, right from 318i through to M3 – is a fantastic choice. With the roof folded away, the E36 boasts sleek flat lines from the windshield back, a timeless look that’s very easy on the eye.

Practical, too, the E36 Convertible still boasts seating for four, as does the equally stylish Coupe, although luggage capacity is down at 8.4 cubic-feet (still plenty large enough for a selection of weekend bags). Get yours with a smooth six-cylinder soundtrack, and you’ve got the perfect summer cruiser.

Best E36 On A Budget: Compact

Interest in retro BMWs, and most other German brands for that matter, has been soaring in recent years. Likely being dragged up by the more desirable models, such as well-specified 328i or M3 cars, even the lower E36 trims are starting to command half-serious money now.

However, if you’re keen to sample ’90s BMW brilliance on a budget, there is still an option out there for you. The E36 Compact does not always receive the same warm welcome as full-size E36 models do, thanks to slightly awkward styling, but perhaps the ugly duckling is finally turning into a swan. Thanks to swelling prices of more desirable models, enthusiasts are slowly warming to the Compact, and rightfully so.

The 3 Series Compact isn’t as advanced as the sedan, as it was sold in the USA with only four-cylinder engines and used the semi-trailing arm rear suspension from the older E30 instead of the E36’s Z-axle multi-link setup on the E36 sedan. However, the Compact brings much of the E36 charm to shoppers on a smaller budget, and it can still easily be picked up for just a few thousand dollars.

BMW E36 Compact Pricing Data

Best E36 Models America Never Got: M3 GT And 325tds

A car designed for global success, BMW introduced different variants of the E36 for different markets. Looking back, although BMW may have had their reasons for denying Americans these trims, we wish some of them had still been offered. These are the two coolest E36 models that never made it to North America.

E36 325tds: Six-Cylinder Diesel Power

Packing a 2.5-liter inline-six turbocharged diesel engine, the 325tds was the coolest non-M E36 available outside of America. The output of this model may look modest, at 141 horsepower and 192 lb-ft of torque, but it was impressive for a diesel sedan of its time, and provided European shoppers with an alternative to the usual crop of gas-powered engines.

Converted from UK to US figures, the 325tds could also offer up to 35 mpg on the highway, meaning it would be perfect for long-distance cruising. Across the various different generations of 3 Series, Americans were offered a number of diesel options, but the E36 remained gas-only during its almost decade-long production run in the US.

GT: Europeans Were Blessed With A More Powerful M3

Americans can boast the exclusive M3 Lightweight model, but, if we’re honest, it was only ever a watered-down version of this: the E36 M3 GT. Sporting a more subdued aesthetic, the M3 GT is finished in dark green, boasts a smaller rear spoiler than the Lightweight, and no dazzling flag graphics. However, under the hood, an extra 55 horses are present, totaling up to a menacing 295 horsepower.

Some examples have been imported to America, and while they don’t come cheap, the scarcer M3 Lightweight still commands more from collectors and enthusiasts alike.

E36 3 Series: Which Model Or Year Is Best?

EU-Spec E36 M3 Evolution

While Americans were blessed with an E36 M3 Evolution, it didn’t offer nearly as much in the way of ‘evolution’ as the European examples did. Americans had to make do with the same 240 horsepower as the standard M3, whereas EU-spec Evolutions boasted an incredible 321 horsepower, from the awesome Type S50 B32 engine – BMW’s first production engine to deliver over 100 horsepower per liter. In terms of output, it’s the most impressive BMW E36 engine ever offered, and that’s reason enough as to why we rate it so highly, but there’s more to the Evolution than just raw power.

A quicker steering rack and beefed-up suspension took care of all things handling, and aluminum doors saw the curb weight drop by 44 lbs. Furthermore, the E36 M3 Evolution was available as not just a coupe, but also as a convertible and sedan, meaning it was still fit for a wide range of uses. This, in addition to the awesome power and tweaked handling, is why the M3 Evolution surely has to be the best E36 ever produced.