Faults:

New camshaft sensor.

Interior electrical drain traced to faulty interior reading bulb fuses/relays, caused many a flat battery, was glad when that was finally sorted out by auto-electrician.

Many suspension and exhaust parts replaced at MOT tests during the last couple of years.

General servicing, oil changes, etc.

General Comments:

A brilliant car which I believe is the last of its kind, the older shape, not the 1998 newer one, but the shape they had through the mid 90s, although this is a 2000 model. Many commented the Compact was not a good car due to very old rear suspension design, however I found the ride quality and handling of this car to be fine and up to BMW standards.

The car was about 5 years old when I bought it, but had a low mileage and history (essential on these cars) showing all green lights on the dash. The couple of irritating faults listed above happened a few years down the line as the miles rose; I find this acceptable as the car did have a good history, but I think the previous owner drove it hard and did not take general care of it much. Dark Blue with updated 17 alloy wheels, this one really stood out, looked like a "stubby" 3 series coupe.

The 1.9 petrol engine updated from the previous 1.6 unit gives adequate performance and economy even when coupled with the auto box. I rarely used sport mode, and found it quick enough and a relaxing cruiser, averaging 32 + MPG. So overall a great little car that was an entry level BMW back in the year 2000, however I think it was worth every penny I spent on running it through the years I had it; only scrapped recently due to needing more work for the MOT test and it wasn't getting any younger or economical to justify. I think maybe an enthusiast could have gotten another couple of years out of it though, there was life left in it; even approaching 200K it was only using a tiny bit of oil between services, and still drove smoothly.

BMW dealers are generally OK, however they can be expensive - your best bet with any older BMW is find a trusted independent that knows these cars well to take care of them at reasonable prices.

Faults:

Head gasket went at 67000 miles. New gasket and head skimmed.

Expansion tank blew.

Very bad oil leak at 80000 miles.

MAF sensor replaced.

Cam sensor replaced.

Odd squeaks from both front doors.

New complete exhaust as the old one rotted from the inside out (too short journeys on my behalf).

General Comments:

I bought this car after owning (a long time ago) a 318 E36 model, which was a great car. I am afraid that this E46 is a different story. As soon as I get one problem fixed, the next one comes along.

Just replaced the exhaust with cat, and now hoping it will run without too many problems, and I'll get a few months of enjoyable driving.

Apart from the issues, it is very comfortable and fun to drive. Only has 118 BHP and is not the fastest on power, but when okay it will cruise all day at the national speed limit, being smooth and not too loud.

I am a BMW fan (God knows why?) and I will be keeping this little car as long as I can.

6 cylinders would have been better (next one!).

Faults:

So far I have not experienced any problems with my car. In fact all I have had to do was fill it with gas and drive. I do have some minor gripes, but they are to be expected from a car of this age and mileage.

1. Sometimes the sunroof acts goofy when I attempt to close it; it will get close to closing, then retract back to open. When this does happen, I just give it a few more minutes to make up its mind.

2. Power steering fluid sometimes overflows from the canister. I've had this checked, and was told that this is pretty common because of the design of the lid. I keep an eye on it, and have never had to refill it.

3. Sometimes I notice a very faint burning smell. I took it to a BMW specialist, who found a very small leak around the seal. He advised me not to worry about it, because the leak is very small. According to him "It would take about 6 months for a half of a quart to leak out." I haven't experienced any spills in the driveway, so I'm trusting his knowledge, all while saving up some 'future repair cash'.

General Comments:

This is my 6th car and 1st BMW/European vehicle. My 04 Maxima was stolen, so after my insurance paid the lein holder, I decided to use the leftover cash to buy something straight out instead of financing. While I have appreciated the strengths of my previous vehicles, nothing has put a smile on my face like my 323. I bought this vehicle from its original owner, who had always had it serviced by BMW, and they had the paperwork to prove it. Not to mention the original window sticker, all of the manuals, CDs, and keys. And I got it well below KBB and NADA estimates :)

It handles like a dream, and the gas mileage is great. I love that it is so well balanced, and driving this car for me is intuitive. I find myself just going for random drives all of the time.

Although this is a coupe and I am 6 feet tall, I have no complaints about space. Keep in mind that I don't have any children, and I'm usually in the car by myself with the occasional 1 or 2 passengers. I have been able to travel comfortably with 4 people in the vehicle for long trips.

The sport suspension may be a bit too stiff for some, but it's just right for me. Not too soft, not too firm, you can drive this thing on rough city streets and not pay for it with back spasms later. You're talking to guy that drove a 00 Mustang for four trouble free years. However it was not nearly as comfortable.

I must admit that I had apprehensions, because my 04 Maxima had a larger engine and about 100 more horses. Let me tell you, the power from the 2.5 is more than adequate, so don't let numbers fool you into thinking that the 3 won't move. If it's not quick enough, you can always upgrade parts or get an M3 ;)