The 1998-2006 BMW 3-Series (E46 chassis) is a popular entry-level luxury compact sedan known for its classic design and engaging driving dynamics. Enthusiasts and reviewers often praise its responsive handling and the reliability of the straight-six variants. It is both famous for reinstating the M badge prestige and infamous for common issues like cooling system failures, subframe cracking, and VANOS problems, making maintenance an important consideration. The E46 is well-suited today as an affordable enthusiast car or a dependable daily driver for those with basic mechanical skills, offering a safer chassis than its predecessor (E36).
The average annual repair cost for a BMW 320i is around $1,157. Reliability concerns include timing chain issues, turbocharger failure, and shock absorber wear. Insurance costs are average for its segment, with full coverage around $137 monthly.
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