What if we make our own E46 M3 Wagon?

Can I ask you a question? When did wagons become cool? Stop, stop, no they were not cool 20 years ago. I was there. At what point did we start clamoring for them? Wagons used to be practical. Functional. But coveted? No one bought them. It’s no wonder why BMW never made an E46 M3 Wagon.

Can we make one cool now?

The 2003 BMW E46 M3 Wagon Overview

So here we are. Wagons are in fact cool now. But they still aren’t selling. Volvo makes them. So does Audi. How many of those do you see?

Then there’s BMW. You know the M3 Touring isn’t coming here, but the M5 Touring has just arrived. We’ll see how it does – could be the reason the next gen M3 wagon comes here. I don’t know, I sort of feel like BMW missed the boat. The wagon everyone really wants is one they never made.

I speak of the E46. 3 Series wagons used to be a part of the portfolio all the way until the current generation, at least in the US. But who’d want (or need) a fast sedan with a backpack? Makes no sense. So the best you could do was a 325. That was BMW’s logic, anyway.

But what if we tweak it by dropping in an S54 from the M3. Might as well add a few other goodies too. Then, we’ll grab it for the cost of a nice M3 Coupe.

Maybe the M3 Touring we want has been here all along.

Performance Score: 8. Red-mine

To achieve the car you see before you, we must get a donor 325i Touring, remove the pathetic 184-horsepower engine (and automatic), and install said S54. Throughout all this, keep in mind that an M3 Coupe weighs 3,394 pounds, and this Touring came in at 3,219. Give or take – that means they weigh pretty much the same. 

Engine

There is little left for me to say about this magnificent engine. Without any turbochargers, it offers a totally linear power band and pulls from here to eternity. Installing it in a wagon does absolutely nothing to dull its responses.

This example also had a carbon fiber intake from the M3 CSL, and really, if you have an S54 and did not yet install one, do it now. It creates a howl that cars just don’t make anymore (induction noise). It’s nowhere near as fast as a G80, and yet it feels like it could be. That’s the difference between the sensation of speed and actual speed – the sensation is more fun, every time.

Sometimes I get asked if I prefer this over the S65, and it’s a difficult choice. But the S54 is the most raw engine BMW has ever produced, and probably stands alone as “the” engine.

Transmission

Sometimes I fall into this habit where I get into an old BMW and think, “Ah yes, I’m about to experience way a BMW manual should feel!”. I’m always wrong.

My notes simply say vague and indirect, with good clutch take up. Like any M3, it’s a car you can get into quickly and feel comfortable driving. The alternative would be to install an SMG transmission, and I think we can all agree that would be a sin. And this is the real deal – the differential from the M3 is ported over here as well.

But yea, hard to love the manual experience. It doesn’t get in the way, but doesn’t add joy either.

Steering and Chassis

Every single car I drive is heavy. Screens. Turbos. Gigantic wheels. They all add weight, and though some are very good at hiding it, you can’t defeat physics. Push them enough and you feel it.

But not here. The original E46 Touring came in at about 3,300 pounds, and though I’m sure adding the M bits has tipped the scales, it’s protein and not fat. The car sits on a lowered suspension with a set of TA5R wheels, giving it an almost slammed appearance. Despite that, it rides..like an M3. Composed. Comfortable. Minimal body lean.

Though a “true” M3 would have a widened track (hence the hips of the Coupe), I’m not sure you’ll miss it in this wagon. Perhaps the rear will want to let go just a bit sooner, but you’d need to push this car hard to find the limit. The chassis is extremely well-balanced.

The only area where this E46 shows its age is in the steering, which I found slightly dull right off center, but excellent once you lean into the turn. Oh wow, feedback in a BMW!

Brakes

Peek behind the wheels to find brakes donated from an F80 M3. This is the way – M cars before the F80 had ugly calipers and a piston count more appropriate for your mom’s minivan.

They grip cross-drilled rotors and work very well – probably better than on the F8X because this car is lighter. It’s all seamless too – no hint that you’re in an aftermarket car. No ABS lights on. Bravo.

This E46 M3 Wagon could easily be a track car – it’s light and nimble enough. It could be a daily – it’s comfy enough. And it could be your show car – it’s unique enough. I think I’m in love.

Lifestyle Score: 8. Ex-3

I suppose the war is over and the SUV won long ago. But maybe we should have focused on saving the wagon instead of the sedan.

We’ll start in the back, where you can lift the hatch itself or simply the glass portion. No modern BMW does this, but I wish they did. There are also roof racks here, perfect for surf boards (the owner is an avid wave-rider). Again, not G8X big, but if the E46 Touring is too small for you, then you need to question some life choices.

The back seat is perhaps where you suffer the most. Your kids will be fine, and your adults too. But if you’re asking really tall people to sit there for awhile, make sure you don’t like them first.

In the front, we have more imported goods from the M3 catalog in the front seats. Reupholstered in delicious and soft cinnamon leather, they are long haul comfy and are perhaps just a bit too wide to hold you in place. Still, excellent for a car that’s 20 years old.

Fuel Economy: 5. Guessing game

As you’d expect, the computer here has no idea what kind of car it’s in, so the MPG reader isn’t accurate. It’s fair to say that we can use the M3 Coupe’s 19 MPG average as a baseline.

That can dip to 15 MPG if you enjoy driving this car, which you should. As I’ve said before, newer M3s are not really that much more efficient, making this entire enterprise seem fruitless.

Features and Comfort: 6. Good as new

Ambient lighting is cool, and so are big sunroofs and adjustable driving modes. But you need none of it to experience a good drive. And this E46 M3 Wagon isn’t exactly bare bones.

Meet me in the middle

The E46 is the last BMW to have its window switches in the center console, so the ergonomics are a bit weird. But there’s also real HVAC controls, and a cleanly-installed Apple CarPlay head unit. That’s the way I use every car’s infotainment system, making iDrive useless after the first ten minutes of setting the car up.

The car has been reupholstered with Cinnamon Merino leather, and it’s so beautiful. There’s also the Alcantara steering wheel from an E46, along with carbon fiber trim. The dashboard is from the M3 as well, and the entire thing really is well-integrated. If I plopped you inside without telling you, you’d just assume M car.

The funny part to all of this is that it still feels like a BMW – even the newest ones still somehow relate to this car. 

Wishful thinking

The one thing I’ve never liked on the E46 sedan are those non-body color door guards. They stick out like a piece of toilet paper adhered to the bottom of your shoe. People are gonna notice. Makes the car looks more dated than the rest of the design.

Thumbs down also to this car’s LCI. Or really, the entire sedan-based front end. I preferred the Coupe’s lights, and really the ones on the M3 are best. These seem droopy. LED Angel Eyes brighten it up a bit.

I digress – this is still a tidy, well-put together Beamer. Alpine White is forever classic, and the Gunmetal wheels offset it perfectly. There’s not a single M badge on it, nor are there quad pipes, so it’s very stealthy. I can’t believe people spend real money to paint their M3s such obnoxious colors.

Others wagons to consider

• Audi RS 6
• BMW 328i Touring
• Porsche Panamera 4S Sport Turismo
• E46 M3 Coupe (can’t hurt to look at an authentic example)

The BMW E46 M3 Wagon is a reminder of what could have been

BMW did in fact build a prototype E46 M3 wagon. It lives in Germany, in a super secret basement, kind of like a T-Rex that never met its momma. What would happen if it got free?! Would it eat all the other E46s?!

I’d like to tell you that BMW was dumb – they should have made said wagon, but I think it would have sold 100 copies and been given a pat on the head. Hell – you couldn’t convince BMW to build a sedan M3 for this generation. Forgot about that for a minute, didn’t you?

But now, 20 years later, things are just different. The M3 Sedan sells more than the M4 Coupe. It’s the car to have if you want to fit in on a Sunday morning with the M bros. I’ve no doubt a G81 Touring would sell – I’d have bought one.

But the G81 is heavy – more SUV at this point than lithe sports sedan. Instead, take a trip back in time and find yourself a 325i Touring, inject M3 DNA into it, then stick it in the oven for about 2 weeks. What comes out will be the only wagon that truly satisfies your craving.

This car was lovingly made by Brian, the same person to bring you the 700-lb-ft of torque 328 Wagon.