This 1998 BMW M3 sedan was fitted with a 3.2-liter S54 inline-six, six-speed manual transmission, steering rack, instrument cluster, and other components from an E46 M3 during a custom build that was chronicled in a dedicated thread on Bimmerforums. It was later offered on BaT in August 2024 and acquired by its current owner in 2026. Work since that time involved retrofitting tinted taillights and replacing the tires and drive belts. Riding on BC Racing coilovers as well as 17″ Style 24 alloy wheels, the car is finished in Alpine White and is further equipped with revised chassis bracing, a stability control system, HID headlights, and a GT-style rear wing. Inside, the heated power-adjustable front seats are trimmed in black leather and complemented by dual-zone automatic climate control, a custom steering wheel, and a touchscreen Sony head unit. This modified E36 M3 is now offered on dealer consignment with a clean Carfax report and a California title.

The car is finished in Alpine White (300), and the front bumper cover and hood have been repainted. Tinted European-style taillights have been added, and further details include a GT-style rear wing with a gurney flap as well as a Reiger front lip, HID headlight bulbs, black kidney grilles, and a Canadian-spec running light delay timer.

Silver-finished 17″ Style 24 alloy wheels were wrapped in 225/45 front and 245/45 rear Michelin Pilot Sport 4S tires in preparation for the sale, and the fenders have been rolled. The car rides on BC Racing coilovers and is equipped with an E46 stability control system and ZHP steering rack as well as Powerflex adjustable camber arms, Ground Control sway bar endlinks, and an X-brace. The front subframe, rear sway bar tabs, and rear shock tower mounts have been reinforced. Braking is provided by Hawk HPS pads over StopTech rotors at all four corners, and steel-braided fluid lines are fitted.

The heated and power-adjustable front seats and the rear bench are upholstered in black leather with tri-color accents on the headrests. A touchscreen Sony head unit is installed, and the climate control panel has been relocated to where the onboard computer was. Additional equipment includes a ZHP shift knob, a built-in USB port, MB Quart component front speakers, a PPI amplifier, rear-mounted subwoofers, and HomeLink. An added ASC switch is used to toggle Sport mode.

The steering wheel has been rewrapped in leather with tri-color stitching and multifunction buttons from an E39 5-Series. The retrofitted E46 M3 gauge cluster shows 159k miles on its digital odometer, approximately 2,500 of which have been added under current ownership. Total mileage is unknown, and the fuel-level gauge is inaccurate at readings below half a tank of fuel.

The 3.2-liter S54 inline-six was sourced from a 2003 E46 M3 and was installed approximately ten years ago after the rod bearings were replaced and the VANOS system upgraded. Additional modifications include a Z3M-spec radiator and oil cooler, a Euro-spec E36 M3 radiator shroud, a SPAL radiator fan with an E46 PWM fan controller, a Walbro 255 fuel pump, and a Bimmerworld exhaust system. Service in preparation for the sale included changing the oil, flushing the brake fluid, and replacing the air filter and drive belts.

Power is sent to the rear wheels through a Getrag G420 six-speed manual transmission and a custom driveshaft with serviceable U-joints. The gearbox is supported with a Euro-spec E36 M3 crossmember, and the clutch and flywheel were replaced at the time of the engine swap.

A California BAR label on the car is shown above. The vehicle most recently passed a California emissions test in June 2026.

The Carfax report is free of accidents or other reported damage.