The BMW E36 M3 is a high-performance version of the BMW 3 Series that was produced from 1992 to 1999. It was the successor to the E30 M3 and became an instant classic upon its release. The E36 M3 was significant in BMW’s history because it was the first M3 to be powered by a six-cylinder engine, which was a departure from the four-cylinder engines of its predecessor. The E36 M3 was also the first M3 to be offered as a sedan, in addition to the traditional coupe and convertible body styles.

The E36 M3 featured a 3.0-liter straight-six engine that produced 240 horsepower and 225 lb-ft of torque. It was available with either a five-speed manual or a four-speed automatic transmission. The car’s handling and performance were exceptional, thanks to its sport-tuned suspension and limited-slip differential. Larger brakes were also added, which provided excellent stopping power.

Only 46,525 examples were sold worldwide. Its popularity as a track car and drift machine has also contributed to its status as a modern classic. As a result, well-maintained examples of the E36 M3 are becoming increasingly difficult to find, and their values are steadily rising.

But why has the E36 M3 become so more desirable these days, both as a favorite among BMW enthusiasts and collectors alike? It is largely down to the following:

1. Legendary Engine: The E36 M3 features BMW’s S50 or S52 inline-six engines, which are renowned for their high-revving capabilities, smooth power delivery, and reliability. The S50 engine produced 240 horsepower, while the S52 engine, introduced in 1996, produced 240 horsepower in the US and 321 horsepower in Europe.

2. Iconic Design: The E36 M3′s classic design blend of sleek lines, aggressive curves, and distinctive features such as the M-style side mirrors, front and rear spoilers, and the signature quad exhaust pipes. The car’s design was ahead of its time and still looks modern today.

3. Limited Production: BMW produced only 46,525 E36 M3s worldwide, making it a rare and sought-after collectible. The limited production numbers, combined with the car’s high performance and iconic design, have contributed to its increasing value.

4. Track Capabilities: The E36 M3 was designed as a high-performance car, and it was well-suited for track use right out of the box. Its sport-tuned suspension, limited-slip differential, and larger brakes make it a popular choice for track enthusiasts and competitive drivers.

5. Rear wheel drive dynamics: The E36 M3’s rear-wheel-drive layout, balanced chassis, and responsive handling make it a classic combination designed and enjoyed for the car enthusiast in mind.

Today, the BMW E36 M3 is gaining value as a modern, collectible classic. Its combination of performance, style, and rarity make it highly sought after by enthusiasts and collectors alike.