BMW E46 M3 Years to Avoid (With Reasons) The BMW E46 M3 is the version of the M3 that was manufactured by BMW during the model years 2001 and 2006. It is available in both coupe and convertible forms. Here are the models of E46 M3 version you need to avoid-. 2001 BMW E46 M3. Determining the best year for a BMW M3 can be tricky and it comes down to a lot of personal preference. Critics generally say that the best M3 would be something from the E46 generation, more specifically a 2006 model with the manual transmission, competition package, and no sunroof. The E46 had everything that makes a BMW M3 great. #1 · Jun 5, 2011 (Edited) As the title says, I'm looking into purchasing a used E46 M3, in exceptional condition. Are the early years ones to avoid? I know they had rod bearing problems, but believe all of that should have been handled with recalls. 2001-2006 BMW M3 (E46) The 2001-2006 BMW M3 (E46) is widely regarded as one of the best BMW 3-Series model years ever produced. It was the successor to the highly successful E36 M3 and was an improvement in almost every aspect. The E46 M3 is powered by a high-revving 3.2-liter inline six-cylinder engine that produces 333 horsepower and 262 lb Avoid the first 1-2 years of a new generation of a model. Compared to my former MB 430CLK, the M3 was much more lithe and agile. The MB felt heavy in the turns and pushed (understeered) a bit but was cushier on my tushy especially noticable on chicago all terrain like streets. Best of luck. When the time came to make the 3rd generation BMW M3, the E46, to the concert all year long. RELATED: Why The BMW E46 M3 CSL Is Still E30 BMW M3 Prices Have Skyrocketed. Avoid: N47 tVzTiw5.