1998 BMW E36 M3

1998 BMW E36M3

  • Serial Number

  • Paint Color

    Cosmosschwarz Metallic

  • Engine

    3.2 Liter Inline-Six

  • Interior Color

    Black Leather

  • Transmission

    5-Speed Manual

  • Mileage

    53,564

  • Price

    $

    SOLD

In the US market at least, the second generation of the BMW M3, known as the E36, represents a textbook case of a car company reacting to market conditions to deliver a better outcome for both customers and the company. The original M3 (the E30) was a focused homologation car built specifically so BMW could respond on European racetracks to the challenge presented in DTM by the Mercedes-Benz 190E 2.3-16. As such, it had several features that made a commercial flop in the United States. The combination of its racey, unrefined S14 engine which delivered barely more performance than the much less expensive 6-cylinder 325i in most circumstances (especially American ones) and high price meant that new E30 M3s sat unsold at American dealers long after production ended in December of 1990. The small number of American enthusiasts who truly understood the car appreciated it deeply, but the value proposition the car offered didn’t inspire enough buyers to get out their checkbooks.

BMW North America learned their lesson for the E36 M3 and initially declined to bring the M3 across the Atlantic at all. Impassioned American enthusiasts embarked on a letter-writing campaign and BMW relented, but they insisted on a much more saleable M3 for the US market. With fewer deviations from the base 325i when compared to the E30 M3, the American market 1995 M3 cost only marginally more ($35,800 versus $30,850 of the 325i). As a result, it was a sales home run, selling close to 37,000 units in North America over five model years, compared to 5,300 E30s over the same number of model years. Although the US E36 M3 had fewer changes from the standard car compared to its predecessor, each change was thoughtfully chosen and brilliantly executed to make the E36 M3 an extremely compelling car that won every American comparison test in which it participated except for one in its final model year (against the Audi B5 S4).

The changes included a 20% more displacement for a 50hp bump, upgraded suspension, brakes, rolling stock, gearbox, limited slip differential, interior, and body kit. This was a remarkable set of upgrades for only $5000 more, and the experience is one that epitomizes BMW’s peak era of driving-oriented philosophy in a way that is almost tragic to experience today.

For the first model year, US market M3s were equipped with 3.0 liter engines, which was increased to 3.2 liters for 1996. This particular example is a 1998 model year coupe finished in cosmos black with black leather interior. It was delivered new on the 15th of January 1998 by John Roberts BMW in Dallas, Texas and was optioned with electric sunroof, cruise control, and Harman Kardon sound system with CD changer, bringing the original MSRP to $42,670.

The car remained in Texas with its first owner until he relocated to the San Francisco Bay Area in late 2001. He sold the car in August of 2002 at 26,000 miles to a longtime owner, who retained it for nearly 23 years, until 2025. That owner fastidiously maintained the car, often with Dinan Engineering, and the car remained in the San Jose area for the duration of this period. The car has now covered fewer than 54,000 miles. Within the last 3,500 miles, the car has received significant maintenance, including inner and outer tie rod ends, upper and lower control arms including bushings, new rear toe control bushings, new sway bar end links, new shocks, brake pads and rotors at all four corners, performing and alignment, decarboning of the engine, new spark plugs, new air, power steering fluid, and fuel filters, new thermostat housing and thermostat, and all new fluids including coolant, brake fluid, transmission and differential oils, and numerous oil changes as well. The shocks fitted are Bilstein B8 and aside from these, the only other modification of note is the fitment of an Active Autowerke rear muffler.

Included with the car is a thick file of service records dating essentially back to new, which includes a photocopy of the window sticker, and VMI. Also present are the owner’s manual pack and tools. 

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No items found.
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