The 1998 BMW M, referring to the high-performance E36 M3, emerged from BMW's motorsport division as the ultimate evolution of the 3 Series. Available in Coupe, Sedan, and Convertible body styles, it was part of the US E36 M3 generation spanning 1995-1999. Key trims were simply the M3 itself. New, prices ranged approximately from $38,000 to $45,000. It stands out for its exceptional driving dynamics, balanced chassis, and rev-happy inline-six engine, offering a blend of track capability and daily usability that solidified its "driver's car" reputation.
The Good
The 1998 BMW M3 offers superb performance with its engaging chassis, precise steering, and responsive 240-hp engine, appealing to emotional drivers. Its timeless design and motorsport heritage are also strong draws. Practically, it boasts decent fuel efficiency for its class, comfortable and supportive seating, and, with diligent maintenance, a robust drivetrain. Its strong resale value and appreciating classic status provide excellent long-term value.
The Bad
Known weaknesses for the 1998 BMW M3 primarily involve the aging cooling system (plastic components), potential VANOS unit issues, and wear on suspension bushings and rear shock mounts. Owners should watch out for neglected maintenance, subframe cracking in high-stress areas, and electrical gremlins typical of older vehicles, all of which can lead to costly repairs.
1998 BMW M: Quick Overview
- Engine Options: For the US market, the 1998 BMW M3 was equipped with one primary engine: the 3.2-liter S52B32 inline-six. This naturally aspirated engine was renowned for its smooth power delivery and rev-happy nature.
- Horsepower: The S52 engine produced 240 horsepower at 6,000 rpm and 236 lb-ft of torque at 3,800 rpm, providing strong acceleration and a broad powerband.
- Fuel Economy: EPA estimates for the 1998 M3 with a manual transmission were typically around 17 MPG in the city and 25 MPG on the highway, averaging approximately 20 MPG combined. Automatic transmission variants might see slightly lower figures.
- 0-60 Times: The manual transmission equipped M3 could achieve 0-60 mph in approximately 5.5 to 5.9 seconds, a highly competitive figure for its era.
- Towing Capacity: The BMW M3 was not officially rated or recommended for towing due to its performance-oriented design and focus.
- Trim-Level Features: The "M3" itself represented the highest performance trim level of the 3 Series. Standard features included:
- M-tuned sport suspension with stiffer springs, shocks, and anti-roll bars.
- Larger, M-specific four-wheel disc brakes for superior stopping power.
- Unique aerodynamic body kit, including distinctive front and rear bumpers and side skirts.
- 17-inch alloy wheels (often "Contour" or "Double Spoke" designs).
- Sport seats with enhanced bolstering, often in cloth or optional leather upholstery.
- M-badged steering wheel, shift knob, and door sills.
- Limited-slip differential for improved traction and handling.
- Automatic Climate Control or manual HVAC.
- Power windows, power door locks, and power mirrors.
- AM/FM stereo with CD or cassette player.
- On-board computer providing various vehicle data.
1998 BMW M Specifications
Vehicle Information
| Year | 1998 |
| Make | BMW |
| Model | M |
| Trim | - |
| Style | 2-Door Convertible |
| Type | Convertible |
| Category | Sports Car |
Manufacturing Details
| Made In | United States |
| Manufacturing City | - |
Dimensions
| Doors | 2-Door |
| Curb Weight | 3086 pounds |
| Gross Vehicle Weight Rating | - |
| Overall Height | - |
| Overall Length | - |
| Overall Width | - |
| Wheelbase Length | - |
| Standard Seating | - |
Engine & Performance
| Engine | 3.2 6 |
| Engine Size | 3.2L |
| Engine Cylinders | 6 |
| Transmission | - |
| Transmission Type | Manual |
| Transmission Speeds | - |
| Drivetrain | Rear-Wheel Drive |
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 M Have?
The 1998 BMW M3, while generally robust, does have several frequently reported problems and long-term reliability concerns, largely due to the age of the vehicle and the materials used. The most notorious issue centers around the cooling system. Plastic components, such as the water pump impeller, thermostat housing, and radiator end tanks, are prone to cracking and failure over time, leading to overheating if not proactively replaced. Owners commonly upgrade these to more durable aluminum or brass components.
Another significant concern is the VANOS system (Variable Valve Timing). The seals within the VANOS unit can degrade, leading to a noticeable rattle, reduced low-end torque, and overall diminished engine performance. Rebuilding the VANOS unit with updated seals is a common and recommended maintenance item.
Suspension components also require attention. The rear shock mounts are known to fail frequently, especially with spirited driving. Likewise, control arm bushings and other rubber components throughout the suspension and drivetrain perish with age and mileage, leading to vague handling and clunks. The rear subframe mounts and the sheet metal they attach to can also crack, particularly in cars used for track driving or with very stiff suspension setups, requiring reinforcement.
Other common issues include window regulators failing, power steering pump leaks, and general electrical gremlins, such as a failing HVAC blower motor resistor (the "final stage unit"). Rust can occur, particularly in northern climates, around wheel arches, sills, and jacking points.
Regarding recalls, the 1998 BMW M3 had very few specific safety recalls unique to its model year. General recalls for components like airbag inflators (e.g., Takata airbags) have affected many vehicles of this era, but significant, widespread mechanical recalls for the 1998 M3 are rare. Many of the listed "problems" are more accurately described as common wear-and-tear items that require diligent maintenance for a vehicle of this age rather than inherent design flaws covered by recalls. While some issues, like VANOS, were more prevalent in later S52 engines, these are generally issues common to the E36 M3 platform across its production run rather than isolated to the 1998 model year.
Another significant concern is the VANOS system (Variable Valve Timing). The seals within the VANOS unit can degrade, leading to a noticeable rattle, reduced low-end torque, and overall diminished engine performance. Rebuilding the VANOS unit with updated seals is a common and recommended maintenance item.
Suspension components also require attention. The rear shock mounts are known to fail frequently, especially with spirited driving. Likewise, control arm bushings and other rubber components throughout the suspension and drivetrain perish with age and mileage, leading to vague handling and clunks. The rear subframe mounts and the sheet metal they attach to can also crack, particularly in cars used for track driving or with very stiff suspension setups, requiring reinforcement.
Other common issues include window regulators failing, power steering pump leaks, and general electrical gremlins, such as a failing HVAC blower motor resistor (the "final stage unit"). Rust can occur, particularly in northern climates, around wheel arches, sills, and jacking points.
Regarding recalls, the 1998 BMW M3 had very few specific safety recalls unique to its model year. General recalls for components like airbag inflators (e.g., Takata airbags) have affected many vehicles of this era, but significant, widespread mechanical recalls for the 1998 M3 are rare. Many of the listed "problems" are more accurately described as common wear-and-tear items that require diligent maintenance for a vehicle of this age rather than inherent design flaws covered by recalls. While some issues, like VANOS, were more prevalent in later S52 engines, these are generally issues common to the E36 M3 platform across its production run rather than isolated to the 1998 model year.
How long will the 1998 BMW M last?
Well-maintained 1998 BMW M3s commonly exceed 150,000 to 200,000 miles, with many reaching 250,000+ miles. Given proper care, these vehicles can easily provide over 20-25 years of service. The long-term durability of the S52 engine block and core drivetrain components is excellent, provided the critical cooling system is proactively maintained and upgraded. However, weaknesses over time predominantly involve age-related degradation of rubber and plastic components. Suspension bushings, engine mounts, and critical cooling system parts will require replacement every 60,000-100,000 miles or every 10-15 years, regardless of mileage. Electrical connections can also corrode, and interior plastics and upholstery can show significant wear. Overall, it's a durable platform, but ongoing vigilance for wear items is key to its longevity.
What Technology & Safety Features are Included?
The 1998 BMW M3, being a product of its era, featured technology that was advanced for the late 1990s but is considerably more basic than modern vehicles. The built-in tech included an on-board computer (OBC) capable of displaying real-time fuel consumption, range, outside temperature, and rudimentary service interval information. Climate control was either manual or an automatic system, allowing for temperature regulation. Power accessories such as windows, door locks, and side mirrors were standard.
For entertainment, the M3 typically came with a BMW Business CD player or a cassette deck with an AM/FM radio. Many models featured a standard six-speaker sound system, with an optional premium Harman Kardon audio system offering enhanced sound quality. A trunk-mounted 6-disc CD changer was also available as an option.
Driver-assistance features were minimal by today's standards. The M3 was equipped with Anti-lock Braking System (ABS) as standard, crucial for controlled stopping. Additionally, Automatic Stability Control + Traction (ASC+T) was standard, helping to prevent wheel spin and maintain vehicle stability under challenging conditions. Cruise control was typically an optional feature, not standard across all trims. Modern driver aids like lane-keeping assist, adaptive cruise control, or blind-spot monitoring were non-existent.
In terms of safety features, the 1998 M3 included dual front airbags for the driver and front passenger. Side airbags became standard across the E36 M3 range towards the later production years, so most 1998 models would have included them. Three-point seatbelts with pre-tensioners were standard for all outboard occupants. The vehicle's rigid body structure provided a good level of passive safety for its time. Regarding crash-test ratings, specific NHTSA or IIHS ratings for the 1998 M3 are not readily available or comparable to modern tests. While Euro NCAP began conducting tests in 1997, explicit M3 data from that period is scarce. Generally, the E36 platform performed adequately for its generation, but it lacks the comprehensive multi-star ratings we see today. Optional safety features were limited, primarily encompassing advanced alarm systems.
For entertainment, the M3 typically came with a BMW Business CD player or a cassette deck with an AM/FM radio. Many models featured a standard six-speaker sound system, with an optional premium Harman Kardon audio system offering enhanced sound quality. A trunk-mounted 6-disc CD changer was also available as an option.
Driver-assistance features were minimal by today's standards. The M3 was equipped with Anti-lock Braking System (ABS) as standard, crucial for controlled stopping. Additionally, Automatic Stability Control + Traction (ASC+T) was standard, helping to prevent wheel spin and maintain vehicle stability under challenging conditions. Cruise control was typically an optional feature, not standard across all trims. Modern driver aids like lane-keeping assist, adaptive cruise control, or blind-spot monitoring were non-existent.
In terms of safety features, the 1998 M3 included dual front airbags for the driver and front passenger. Side airbags became standard across the E36 M3 range towards the later production years, so most 1998 models would have included them. Three-point seatbelts with pre-tensioners were standard for all outboard occupants. The vehicle's rigid body structure provided a good level of passive safety for its time. Regarding crash-test ratings, specific NHTSA or IIHS ratings for the 1998 M3 are not readily available or comparable to modern tests. While Euro NCAP began conducting tests in 1997, explicit M3 data from that period is scarce. Generally, the E36 platform performed adequately for its generation, but it lacks the comprehensive multi-star ratings we see today. Optional safety features were limited, primarily encompassing advanced alarm systems.
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 M Prices and Market Value
When new in 1998, the BMW M3 Coupe started around $38,900, the Sedan around $39,700, and the Convertible approximately $44,900. Unlike typical cars that continually depreciate, the E36 M3 has entered a phase of appreciation. Current used market prices vary wildly based on condition, mileage, and originality. Rough examples might fetch $8,000-$12,000, while clean, well-maintained cars with service records typically sell for $15,000-$25,000. Pristine, low-mileage examples, especially Coupes with manual transmissions, can command $30,000 or more. Factors affecting resale value include impeccable maintenance history, original condition (unmodified cars often fetch more), lower mileage, desirable color combinations, and manual transmissions. Body style also plays a role, with Coupes often holding the highest value, followed by Sedans and Convertibles.
1998 BMW M Cost of Ownership
Ownership costs for a 1998 BMW M3 reflect its performance-car status and age. Insurance premiums are typically higher than a standard 3 Series due to its performance capabilities. It requires premium fuel (91+ octane), and while its 19-20 MPG combined is decent for its class, it's not "economical." Maintenance is critical and often expensive; M-specific parts cost more, and aging components (cooling system, suspension bushings, VANOS) require proactive replacement. Repair costs can be high, especially for specialized M parts or if professional labor is needed. Long-term, it's a costly vehicle to own if not diligently maintained. It's a passion purchase for enthusiasts, not a budget-conscious daily driver.
1998 BMW M Fuel Efficiency
Fuel Type
Gasoline
Fuel Capacity
13.5 gallons
City Mileage
18 miles/gallon
Highway Mileage
26 miles/gallon
1998 BMW M Safety Rating
NHTSA
IIHS
1998 BMW M Insurance
Insurance for a 1998 BMW M is moderately priced, reflecting its status as a Convertible with strong safety ratings and
reasonable repair costs.
reasonable repair costs.
How Does the 1998 BMW M Compare to Other Convertible?
The 1998 BMW M3 faced competition from several notable rivals, each offering a distinct flavor of performance and luxury. Key competitors included the Mercedes-Benz C36 AMG (and later C43 AMG), the Audi S4 (B5 generation), and domestically, the Ford Mustang Cobra and Chevrolet Corvette C5.
In terms of performance, the M3 was lauded for its exceptional balance, communicative steering, and sublime chassis. It offered a more engaging and nimble driving experience than the heavier, more luxury-oriented C36 AMG, which prioritized effortless power. The M3's 240-hp S52 engine, while less powerful than some V8 rivals, offered a linear power delivery and a higher redline, making it incredibly rewarding on twisty roads. The Audi S4, with its twin-turbo V6, offered strong straight-line acceleration and quattro all-wheel drive, but often felt less connected than the M3. The Mustang Cobra offered raw V8 power, while the C5 Corvette delivered even greater straight-line speed and a more dedicated sports car feel, but with less emphasis on luxury and practicality.
Features-wise, the M3 struck a strong balance between performance necessities and luxury amenities for its time. AMG models often boasted more opulent interiors and features, while the Mustang and Corvette were typically more spartan, focusing purely on performance.
Reliability for the E36 M3 is generally good if proactive maintenance is observed, though it has known "weak spots" like the cooling system and VANOS. AMG models from this era can be complex and expensive to repair when issues arise. The B5 S4 is known for its own set of expensive turbo and engine-out service challenges.
Price new, these vehicles were often competitive. In the used market today, the M3 has shown remarkable appreciation, especially clean manual coupes, often fetching higher prices than its period rivals. AMG models and B5 S4s can be found cheaper but often carry significant deferred maintenance burdens.
Similar Alternatives: For a purely visceral driving experience, a Porsche Boxster (986) of the same vintage offers mid-engine balance and open-top thrills. For a slightly more modern take on the M3 formula, a clean E46 M3 (early 2000s) is a natural upgrade if the budget allows. If raw power and a distinctly American sports car feel are paramount, a C5 Corvette remains an outstanding value. For those seeking more luxury with performance, a C43 AMG provides a different, albeit potentially more costly to maintain, experience.
In terms of performance, the M3 was lauded for its exceptional balance, communicative steering, and sublime chassis. It offered a more engaging and nimble driving experience than the heavier, more luxury-oriented C36 AMG, which prioritized effortless power. The M3's 240-hp S52 engine, while less powerful than some V8 rivals, offered a linear power delivery and a higher redline, making it incredibly rewarding on twisty roads. The Audi S4, with its twin-turbo V6, offered strong straight-line acceleration and quattro all-wheel drive, but often felt less connected than the M3. The Mustang Cobra offered raw V8 power, while the C5 Corvette delivered even greater straight-line speed and a more dedicated sports car feel, but with less emphasis on luxury and practicality.
Features-wise, the M3 struck a strong balance between performance necessities and luxury amenities for its time. AMG models often boasted more opulent interiors and features, while the Mustang and Corvette were typically more spartan, focusing purely on performance.
Reliability for the E36 M3 is generally good if proactive maintenance is observed, though it has known "weak spots" like the cooling system and VANOS. AMG models from this era can be complex and expensive to repair when issues arise. The B5 S4 is known for its own set of expensive turbo and engine-out service challenges.
Price new, these vehicles were often competitive. In the used market today, the M3 has shown remarkable appreciation, especially clean manual coupes, often fetching higher prices than its period rivals. AMG models and B5 S4s can be found cheaper but often carry significant deferred maintenance burdens.
Similar Alternatives: For a purely visceral driving experience, a Porsche Boxster (986) of the same vintage offers mid-engine balance and open-top thrills. For a slightly more modern take on the M3 formula, a clean E46 M3 (early 2000s) is a natural upgrade if the budget allows. If raw power and a distinctly American sports car feel are paramount, a C5 Corvette remains an outstanding value. For those seeking more luxury with performance, a C43 AMG provides a different, albeit potentially more costly to maintain, experience.
Final Verdict: Is the 1998 BMW M a Good Convertible?
The 1998 BMW M3 is ideal for driving enthusiasts, BMW purists, and collectors seeking a genuine "driver's car" with a rich motorsport heritage and an analog feel. It's perfect for someone who appreciates balanced performance, precise handling, and a rewarding manual transmission experience. It is absolutely worth buying for the right individual, but under very specific conditions. Since it's only available used, a comprehensive pre-purchase inspection (PPI) by an independent BMW specialist is non-negotiable. Look for examples with meticulous service records, as deferred maintenance can quickly turn a good deal into a money pit. The Coupe often commands the highest value and is preferred by many for its classic proportions, but the Sedan offers similar performance with added practicality, while the Convertible provides open-air enjoyment. This isn't a vehicle for those seeking modern creature comforts, ultimate fuel efficiency, or minimal ownership costs. It requires an owner committed to proactive maintenance and who understands its unique appeal as an appreciating modern classic, rather than a cheap daily driver.
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.