1998 BMW 318 Overview, Reviews, Ratings & Specs
The 1998 BMW 318, part of the E46 generation, represented a compelling entry into the compact executive sedan segment. Available primarily as a sedan (E46 320i) and also as a coupe, it was produced from 1998 to 2006. The key trim was the 318i, offering a blend of BMW's signature driving dynamics and relative affordability. Its popularity stemmed from being an attainable way to experience premium German engineering and a sporty driving feel, making it a desirable choice for enthusiasts and those seeking a well-built, engaging vehicle.
The Good
The 1998 BMW 318 excels with its engaging performance and classic BMW handling, offering a pure driving experience. Its elegant design appeals to aesthetic desires, while respectable fuel efficiency satisfies practical concerns. It provides a comfortable ride and represents strong value for a premium brand, making it a smart choice for both the heart and the head.
The Bad
Potential owners of the 1998 BMW 318 should be aware of possible cooling system issues, particularly leaks from the plastic expansion tank and water pump. Vanos (variable valve timing) unit problems can also arise, leading to rough idling. Check for rust, especially on the rear wheel arches and sills, and inspect the suspension for wear.
1998 BMW 318: Quick Overview
- Engine Options: The primary engine for the 1998 BMW 318 was the M43B19, a 1.9-liter inline-four cylinder gasoline engine.
- Horsepower: This engine typically produced around 118 horsepower (90 kW) at 5,300 rpm.
- Torque: Peak torque was approximately 178 Nm (131 lb-ft) at 3,700 rpm.
- Fuel Economy: Official EPA estimates for the 1998 BMW 318i sedan with the automatic transmission were around 19 mpg city / 27 mpg highway. Manual transmission versions might see slightly better figures.
- 0-60 Times: Acceleration from 0 to 60 mph was generally in the range of 10.0 to 11.5 seconds, depending on the transmission and specific model.
- Towing Capacity: The BMW 318 was not designed for significant towing; towing capacity was not a primary feature and is generally considered negligible or not applicable for typical use.
- Trim-Level Features (318i Sedan): Standard features often included power windows and locks, cruise control, dual airbags, anti-lock brakes (ABS), a tilt/telescopic steering wheel, and a basic AM/FM/cassette stereo system. Optional features could include leather upholstery, heated seats, a sunroof, automatic climate control, a premium sound system with CD player, and alloy wheels. The E46 chassis also brought improved interior materials and a more refined cabin compared to its predecessors. Stability control (DSC) was also becoming more common as an option.
- Body Styles: While the 318 designation often referred to the sedan, other E46 body styles like the coupe (318Ci in some markets) were also available, though sometimes with different engine designations in different regions. The focus here is on the common 318i sedan.
1998 BMW 318 Specifications
Vehicle Information
| Year | 1998 |
| Make | BMW |
| Model | 318 |
| Trim | - |
| Style | Sedan |
| Type | Sedan |
| Category | - |
Manufacturing Details
| Made In | - |
| Manufacturing City | - |
Dimensions
| Doors | - |
| Curb Weight | - |
| Gross Vehicle Weight Rating | - |
| Overall Height | - |
| Overall Length | - |
| Overall Width | - |
| Wheelbase Length | - |
| Standard Seating | - |
Engine & Performance
| Engine | - |
| Engine Size | - |
| Engine Cylinders | - |
| Transmission | - |
| Transmission Type | - |
| Transmission Speeds | - |
| Drivetrain | - |
Additional Features
| Anti-Brake System | - |
| Steering Type | - |
Pricing
| Manufacturer Suggested Retail Price (MSRP) | - |
| Invoice Price | - |
| Delivery Charges | - |
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What Problems Does the 1998 BMW 318 Have?
The 1998 BMW 318, being an early E46 model, is susceptible to certain common issues as it ages. One of the most frequently reported problems relates to the cooling system. Plastic components like the expansion tank and radiator can become brittle over time and develop leaks. The water pump is also a wear item that often needs replacement. Another significant concern for many E46 models, including the 1998 318, is the Vanos (Variable Valve Timing) unit. Symptoms of Vanos failure include rough idling, particularly at startup, and a general loss of power or hesitation. While not a recall, this is a known maintenance item that can be costly to repair.
Oil leaks are also common, particularly from the valve cover gasket and oil pan. The ABS/ASC module can fail, leading to illuminated warning lights and a loss of stability control functionality. On the interior, window regulators can fail, preventing windows from operating. Electrical gremlins can also appear, such as malfunctioning instrument clusters or intermittent power to various accessories.
Rust is a concern for any older vehicle, and the E46 chassis is not immune. Pay close attention to the rear wheel arches, rocker panels, and the area around the jacking points. While there weren't widespread recalls specifically targeting major powertrain or safety failures for the 1998 model year that would cripple the car, regular maintenance is crucial for long-term reliability. Many issues are related to the natural aging of rubber hoses, plastic components, and seals. Owners who have meticulously maintained their 318s tend to report fewer major problems, but the cost of repairs can be higher than for some competitors due to the complexity and premium nature of BMW parts and labor.
Oil leaks are also common, particularly from the valve cover gasket and oil pan. The ABS/ASC module can fail, leading to illuminated warning lights and a loss of stability control functionality. On the interior, window regulators can fail, preventing windows from operating. Electrical gremlins can also appear, such as malfunctioning instrument clusters or intermittent power to various accessories.
Rust is a concern for any older vehicle, and the E46 chassis is not immune. Pay close attention to the rear wheel arches, rocker panels, and the area around the jacking points. While there weren't widespread recalls specifically targeting major powertrain or safety failures for the 1998 model year that would cripple the car, regular maintenance is crucial for long-term reliability. Many issues are related to the natural aging of rubber hoses, plastic components, and seals. Owners who have meticulously maintained their 318s tend to report fewer major problems, but the cost of repairs can be higher than for some competitors due to the complexity and premium nature of BMW parts and labor.
How long will the 1998 BMW 318 last?
Based on owner data and typical maintenance, a well-cared-for 1998 BMW 318 can realistically achieve 200,000 to 250,000 miles, and sometimes even more. The long-term durability of the engine and transmission is generally good if oil changes are performed regularly with quality synthetic oil. However, the chassis and various components are subject to wear and tear over time. Weaknesses that become more pronounced with age and mileage include the cooling system (plastic components degrade), suspension bushings, and the aforementioned Vanos unit. Electrical components can also become less reliable. Proactive maintenance, addressing minor issues before they become major, is key to maximizing the service life of this vehicle. Neglect significantly accelerates degradation and increases the likelihood of costly repairs, potentially limiting its lifespan considerably.
What Technology & Safety Features are Included?
The 1998 BMW 318, representing the early E46 generation, offered a blend of contemporary technology for its era, focusing on driver-centric features and essential safety. Standard entertainment typically consisted of a basic AM/FM radio with a cassette player, often with four or six speakers. Higher-trim models or optional packages could upgrade this to a CD player and a more advanced sound system, sometimes branded as Harman Kardon. Steering wheel-mounted audio controls were becoming more common as an option.
Driver-assistance features were relatively limited by today's standards. Anti-lock braking system (ABS) was standard, providing crucial stopping power. Many models also came equipped with Automatic Stability Control (ASC+T), which helped prevent wheelspin during acceleration. Traction control systems were an emerging technology, and its availability on the 318i would often depend on the specific package or options chosen. Cruise control was also a common convenience feature.
Safety was a priority for BMW. The 1998 318 came standard with dual front airbags. Side-impact airbags were often available as an option, particularly in later production runs of this model year or in higher trims. The E46 chassis itself was designed with a reinforced safety cell and crumple zones. In terms of crash-test ratings, the E46 3-Series generally performed well for its time. For instance, the 2000 E46 323i sedan received good ratings from the IIHS, scoring "Good" in the frontal offset crash test. While specific ratings for the 1998 318i might vary slightly, the overall safety structure of the E46 platform was considered robust. The focus was on active safety through good handling and braking, and passive safety through airbags and a strong body structure.
Driver-assistance features were relatively limited by today's standards. Anti-lock braking system (ABS) was standard, providing crucial stopping power. Many models also came equipped with Automatic Stability Control (ASC+T), which helped prevent wheelspin during acceleration. Traction control systems were an emerging technology, and its availability on the 318i would often depend on the specific package or options chosen. Cruise control was also a common convenience feature.
Safety was a priority for BMW. The 1998 318 came standard with dual front airbags. Side-impact airbags were often available as an option, particularly in later production runs of this model year or in higher trims. The E46 chassis itself was designed with a reinforced safety cell and crumple zones. In terms of crash-test ratings, the E46 3-Series generally performed well for its time. For instance, the 2000 E46 323i sedan received good ratings from the IIHS, scoring "Good" in the frontal offset crash test. While specific ratings for the 1998 318i might vary slightly, the overall safety structure of the E46 platform was considered robust. The focus was on active safety through good handling and braking, and passive safety through airbags and a strong body structure.
What Colors Options are Available?
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In the meantime, feel free to explore the other sections for more content.
In the meantime, feel free to explore the other sections for more content.
1998 BMW 318 Prices and Market Value
When new, the 1998 BMW 318i sedan typically had a starting MSRP in the range of $28,000 to $32,000, depending on options and regional pricing. As with most German luxury cars, it experienced significant depreciation in its first few years. Currently, the used market price for a 1998 BMW 318 varies widely, ranging from around $2,000 for vehicles needing substantial work to upwards of $6,000-$8,000 for exceptionally well-maintained examples with lower mileage. Factors significantly affecting resale value include the vehicle's overall condition, maintenance history (especially records of major repairs), mileage, body style (coupes often hold value better), and the presence of desirable optional features. A well-documented service history and a lack of rust are paramount for a higher resale value. These cars have transitioned from commuter vehicles to enthusiast-focused classics, so condition and originality are key determinants of price.
1998 BMW 318 Cost of Ownership
Owning a 1998 BMW 318 can be moderately economical if you're diligent with maintenance and find a good independent mechanic. Fuel costs are reasonable for its class, with the 1.9L engine offering decent MPG. However, insurance can be slightly higher than for a comparable non-premium brand vehicle. The primary cost factor is maintenance and repair. While parts are readily available, they are generally more expensive than for mainstream brands. Expect to spend more on routine maintenance (oil changes, filters) and potentially significant amounts on age-related repairs such as cooling system components, suspension parts, and electronics. It's not an economical car to own if repairs are neglected; it's best suited for those prepared for potentially higher upkeep costs.
1998 BMW 318 Fuel Efficiency
Fuel Type
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Fuel Capacity
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City Mileage
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Highway Mileage
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1998 BMW 318 Insurance
Insurance for a 1998 BMW 318 is moderately priced, reflecting its status as a Sedan with strong safety ratings and
reasonable repair costs.
reasonable repair costs.
How Does the 1998 BMW 318 Compare to Other Sedan?
The 1998 BMW 318 entered a competitive segment dominated by cars like the Mercedes-Benz C-Class (W202), Audi A4 (B5), and the Lexus IS (first generation), along with more common domestic options.
Performance: BMW has always been the benchmark for driving dynamics. The 318i, while not the most powerful, offered superior handling, steering feel, and a more engaging ride compared to many rivals. The Mercedes C-Class was known for its comfort and refinement but often felt less sporty. The Audi A4 offered good all-wheel-drive capabilities (Quattro) and a solid feel. The Lexus IS provided a blend of luxury and sportiness, but often at a higher price point.
Features: For 1998, the 318i offered a good suite of standard features, with options for luxury items. However, competitors like Lexus often led in terms of standard luxury amenities and advanced technology for the time. Mercedes also offered a very well-appointed interior. BMW focused more on the driving experience.
Reliability: This is where the 318i faces challenges. While BMWs are built to last, the E46 generation, especially early models, is known for specific age-related issues (cooling system, Vanos, electronics) that can be costly to repair. The Lexus IS generally holds a strong reputation for reliability and lower long-term maintenance costs. Mercedes and Audi can also be costly to maintain, with their own sets of potential issues.
Price: The 318i was positioned as a more accessible entry into the BMW brand, often priced competitively against its German rivals. Lexus models tended to command a premium.
Alternatives: If outright reliability and lower cost of ownership are paramount, a Lexus IS300 (though often a later model year) or even a well-maintained Honda Accord or Toyota Camry from the same era could be considered. If a more engaging driving experience is the priority and budget allows for potentially higher maintenance, a later model 323i or 328i from the E46 generation would offer more power while sharing similar driving characteristics. A well-kept Audi A4 Quattro could be a good alternative for all-weather capability and a solid feel. The 318i remains a good choice for those prioritizing BMW's driving ethos on a budget, provided they are prepared for its maintenance needs.
Performance: BMW has always been the benchmark for driving dynamics. The 318i, while not the most powerful, offered superior handling, steering feel, and a more engaging ride compared to many rivals. The Mercedes C-Class was known for its comfort and refinement but often felt less sporty. The Audi A4 offered good all-wheel-drive capabilities (Quattro) and a solid feel. The Lexus IS provided a blend of luxury and sportiness, but often at a higher price point.
Features: For 1998, the 318i offered a good suite of standard features, with options for luxury items. However, competitors like Lexus often led in terms of standard luxury amenities and advanced technology for the time. Mercedes also offered a very well-appointed interior. BMW focused more on the driving experience.
Reliability: This is where the 318i faces challenges. While BMWs are built to last, the E46 generation, especially early models, is known for specific age-related issues (cooling system, Vanos, electronics) that can be costly to repair. The Lexus IS generally holds a strong reputation for reliability and lower long-term maintenance costs. Mercedes and Audi can also be costly to maintain, with their own sets of potential issues.
Price: The 318i was positioned as a more accessible entry into the BMW brand, often priced competitively against its German rivals. Lexus models tended to command a premium.
Alternatives: If outright reliability and lower cost of ownership are paramount, a Lexus IS300 (though often a later model year) or even a well-maintained Honda Accord or Toyota Camry from the same era could be considered. If a more engaging driving experience is the priority and budget allows for potentially higher maintenance, a later model 323i or 328i from the E46 generation would offer more power while sharing similar driving characteristics. A well-kept Audi A4 Quattro could be a good alternative for all-weather capability and a solid feel. The 318i remains a good choice for those prioritizing BMW's driving ethos on a budget, provided they are prepared for its maintenance needs.
Final Verdict: Is the 1998 BMW 318 a Good Sedan?
The 1998 BMW 318 is ideal for the budget-conscious driving enthusiast who appreciates BMW's renowned handling and build quality but cannot afford a newer or higher-performance model. It's worth buying for those who prioritize driving engagement and a premium feel, provided they have realistic expectations about its age and potential maintenance needs. Buying used is the only option, and a thorough pre-purchase inspection by a BMW specialist is non-negotiable. Look for examples with a comprehensive service history, indicating meticulous care. While the 318i is the primary variant, any well-maintained E46 chassis offers a similar experience. It's best suited for someone who enjoys hands-on maintenance or has a reliable independent mechanic familiar with German cars, and who is prepared for potentially higher repair costs than a comparable Japanese vehicle.
Eugene S
Eugene is an automotive enthusiast with over 15 years of experience in the used car market. As a writer at VINCheck.info, he brings deep industry insight and a passion for cars, helping readers make smart, informed decisions. Eugene has written hundreds of used car reviews and is known for breaking down complex automotive topics into clear, actionable advice. Over the years, he has driven and worked on a wide range of vehicles—starting with tuning street cars in his early days and eventually focusing on performance upgrades and reliability improvements. Today, he specializes in evaluating used vehicles through the lens of real-world ownership and enthusiast needs. A longtime fan of Porsche, Eugene especially appreciates vehicles that blend durability with driving enjoyment.