Background

The replacement for the classic E30 was introduced in late 1991.It is larger than the E30 and all models except the Compact have the Z-axle rear multi-link suspension developed from the E31 850CSi. These are good handling cars and all have roughly 50/50 weight distribution. Technically the Z3 is an E36, but I've given it a separate Z3 page.

Models

The saloon appeared first and was followed nearly two years later by the Coupe. Shortly after came a convertible and in mid 1995 the Touring five door version was added to the range. Interestingly the E30 Touring was available for some years after the introduction of the E36 but only in Europe.

The Compact was released in 1995 as a three door hatchback. It has a different interior from the other E36 models and uses the E30 rear axle to save space and cost. It also has non-ventilated discs at the front and has a smaller fuel tank. The Compact is a really fun car to drive in 318ti form.

Engines

The four cylinder M40 1.6 & 1.8 8 valve engines were used for the first E36 saloons but they were soon replaced by the more advanced M43. The M43 had distributorless ignition a timing chain rather than a belt so it's a useful upgrade. It also solved the horrid ticking noise that older M40s made. The coupe had the excellent M42 16 valve 1.8 and subsequent M44 1.9 engines, these were also used for the saloon and cabrio in South Africa and the USA.

The six cylinder E36s started life with the marvellous M50 24 valve 2.0 and 2.5 litre engines which are a joy to drive and need less mantenance than the older M20 they replaced. In mid-93 the M50TU was introduced with VANOS variable valve timing for better mid range power. The alloy block M52 was introduced in 95 and replaced by the M52tu in March 98. The M52 had single VANOS or double VANOS on the M52tu.

The M52 was dumbed down by a restricitve intake manifold in order to meet lower German insurance groups. The 328i only makes 1 bhp more than the older 325i. But fitting the M50 intake manifold to the M52 along with a big bore throttle body and rechip can yield 240+ bhp!.

Turbo diesel models appeared around late 1993, early models didn't have an intercooler as standard and were termed td rather than tds. The 318tds appeared around 1995.

The early euro M3s all had the 3.0 S50 engine. When the Evo came out it went up to 3.2 litres. US M3s used a 3.0 then 3.2 version of the M50/52 and retained one throttle body rather than the traditional one per cylinder as a cost saving feature. In practice this made a well balanced car at a good price and below 80mph there isn't a huge difference. The US version didn't get the Euro's floating rotor disc brakes or six speed gearbox either.

The final year's production of the 318i saloon for the UK were actually made in South Africa, German plants were busy making left hand drive E46s. This meant they had vented front brake discs, rear discs, the M44 1.9 16 valve engine and several other upgrades. They're well worth seeking out. The '99 316i Compacts (and probably coupes and tourings) actually have the same 1.9 litre four cylinder engine as the E46 318i.

* Only 1996 onwards euro 318iS with the M44 engine have the 3.38 rear end. US versions retain the 3.45, lucky them!

If there are several body styles the figures relate to the saloon. Weights are for standard car, add about 40kg for SE models mainly due to A/C. See the engine details page for power figures.

In the US all 318i models have the 16 valve engine. Not sure if this is true for early E36s though. It is interesting to note the the weight the car has gained over the years has not been matched by more powerful engines, this is especially true of the 318iS.

Very early european models only had ABS as an optional extra but I've never seen an E36 without ABS. Drivers airbag was standard in the UK in late 1993. Late model euro 318iS had the option of an M-Tech body pack.

Known Problems

As every car nut knows, every model has its own set of issues and quirks. In this section, I list some of the common BMW parts that wear or fail prematurely, as well as some suggested fixes. Sometimes going for OEM replacement BMW parts can be the way to go, other times the aftermarket industry has come up with something better that solves the problem once and for all. If you think there are any common BMW part problems that I missed, let me know!

Rear shock mounts often go at 40-60K. This shows up as a rattle when going over pot holes, not expensive to fix.

Interiors and many other parts are much better made on post 1994 cars. My 1995 was much better put together than my 93.

Early cars were the test bed for BMW's water based paint. Took them a few years to perfect it. Pre 1994 cars seem to rust a bit more around the wheel arches and panel edges as a result.

The timing case profile gasket on M42 engines made before about September 1993 are eaten away by coolant and have a high chance of failing at 30-70K. This results in total coolant loss and is a very serious problem. BMW UK and Australia will fix this under warranty but BMW USA will not. Using BMW approved low phosphate coolant will delay the problem. The cylinder head must be removed to replace the gasket with one of a new improved design. This is an expensive problem. If buying a pre-93 or early 93 318iS or E30 318iS check the gasket has been upgraded (unlikely). Mine failed at 56K.

Saloon front electric windows have been a problem on some early cars.

On the coupes the windows can jerk up one inch at a time if they fail, this is because the magnet on the motor shaft moves out of position or falls off.

Glove box rattles are common on pre-95 models, this is a design fault. In fact the build quality on early cars isn't fantastic. My 89 E30 is MUCH better than my 93 318iS. The seat fabric is better than the early E30s but at 100k it's not unusual to see fraying seat covers.

In hot countries the dash can bulge above the centre air vent on early cars, there is an upgrade bracket kit to fix this.

Late model saloon door noises have been a problem due to the type of rubber used in the seals. Mainly a problem on the rear doors in 1996 cars.

1995 318iS had a problem with cracking on the exhaust manifolds.

A loud ticking sound, especially on a cold start, on an M42 1.8 16 valve engine is often a failing chain tensioner. Cheap and easy fix. Often mistaken for tappet problems. M50s can can get this too but it's less common.

Hot clutch shudder is common on many newer BMWs, my 318iS has is once or twice a year and my old E30 318iS had it once. When the clutch gets VERY hot it will judder when first or second gear is engaged. This happens in town driving after the car has been driven for a very long time. It is more common in hot countries and only happens to me in the summer. It can happen regardless of clutch age and may be due to a non-asbestos lining on the clutch plate. It is claimed that BMW dealers have a replacement part to cure the problem but if this is the case why do new cars still do it?

In race track use the 318iS will suffer oil starvation unless the oil level is at max on the dipstick. Early M3s can also do this unless a baffled oil pan is fitted.

Early front fog lamp lenses can crack due to thermal stress, this was a warranty claim for most owners.

On early cars the front under bumper area is poorly made. Brake ducts fall off (taking the OBC temp sensor along), the under tray falls off, etc. Later cars seem better.

If the windows and sunroof fail it's time for a new comfort relay, it lives behind the glovebox. Not that common a fault.

Do not buy an M52 320/323/328 with an alloy block made before 3/98 unless it's had a new engine under warranty or you get a compression check done. Sulphur in fuel causes premature bore wear which shows as a bad idle and lack of power. Only solution is a new block. After the problems with the M60 V8 BMW NA were vary of the alloy block M52 and all (or maybe just early?) US cars had a steel block instead.

M50 engines and possibly early M52s use a water pump with a plastic impeller. After 80k this can fail and leave little bits all around the cooling system. Replace it with the later metal style pump before it fails, not dear. M50s don't seem to like the cooling system being neglected, you need a fluid change every 2 years at least.

The rust proofing on early front wings / fenders isn't brilliant, but the rest of the car is excellent in this regard. Front mud flaps make an excellent rust trap if fitted, avoid.

The 16" three piece (bolted) cross spoke wheels fitted to the 328i sport seem to have a problem with paint finish.

The VANOS gear on the Euro/UK M3 3.2 is a known problem and seems to fail a lot, not cheap to replace.

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