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BMW Z3 (1995 to 2002)

By Jon Cosson · Last checked

An independent model review with what to look for and the questions to ask before you bid.

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Overview

The Z3 was BMW's answer to the roadster revival of the 1990s and its first serious two-seat sports car since the 507 of the 1950s. It was also the first BMW built entirely outside Germany, at the then new Spartanburg plant in South Carolina, and it gained early fame as James Bond's car in GoldenEye.

The range ran from modest four-cylinder cars to smooth straight-sixes, plus the M Roadster and the oddball M Coupe with its estate-like rear. Four-cylinder cars are pleasant, relaxed open-top tourers rather than quick machines. The sixes add real pace and a noticeably wider rear track, and the M cars are genuinely fast, using engines from the M3.

Its reputation has shifted over the years. Once dismissed as soft next to rivals and a little plain inside by BMW standards, it is now widely seen as a characterful and usable modern classic. Mechanically it is mostly robust, but it has a few well-documented weak spots, chief among them cracking around the rear differential and subframe mountings on hard-driven cars. Sources agree that condition and history matter far more than the badge on the boot.

Key facts

  • Production: 1995 to June 2002, at Spartanburg, USA. UK sales began in 1996 or 1997 depending on the source; one buying guide gives a UK launch of July 1996, another lists January 1997.
  • Body styles: two-seat roadster (manual or optional power hood, with an aluminium hard top as a rare accessory); two-door coupe from 1998 (the date varies by market and source).
  • Four-cylinder engines: 1.9 M44 twin-cam (140bhp); 1.8 M43 single-cam (around 116 to 118bhp, sources differ).
  • Six-cylinder engines: 2.8 M52 (about 190 to 193bhp); 2.0 M52TU six (150bhp); 2.2 M54 (170bhp); 3.0 M54 (around 228 to 231bhp, sources differ).
  • M Roadster and M Coupe: 3.2-litre S50B32 six (321bhp in UK specification), replaced by the S54B32 from 2001.
  • Gearboxes: Getrag five-speed manual on the 1.8, 1.9 and 2.0; ZF five-speed manual on the larger sixes; four-speed GM automatic on fours, ZF five-speed automatic on sixes.
  • Production numbers: one UK guide puts total sales at about 297,000; Hagerty says over 275,000 non-M roadsters and coupes were built and that fewer than 12,000 coupes of all types were sold worldwide. Treat these as approximate.

Versions and changes to know

  • 1996 to 1997: 1.9 four-cylinder roadster is the UK launch model. Europe also had a 1.8 single-cam.
  • Late 1997: 2.8 six arrives with vented front brakes, wider rear arches and a limited-slip differential.
  • 1998: M Roadster on sale in the UK, with M3-derived engine, wider bodywork and uprated suspension.
  • 1998 to 1999: M Coupe arrives. Auto Express states the coupe was sold in the UK only in M form; other markets had non-M coupes.
  • April 1999: facelift with new rear lights, bumpers and arches. The 1.9 is replaced by the 1.8 and a 2.0 six. On the 2.8, the clutch-type limited-slip differential gives way to a Torsen unit.
  • 2000: 2.8 becomes 3.0 and the 2.0 six is replaced by the 2.2, both with the M54 engine.
  • 2001: sports suspension and 17 inch wheel packs for six-cylinder cars; 1.9 Sport Roadster added; M cars switch to the S54 engine.
  • June 2002: production ends and the Z4 takes over at Spartanburg.

What to look for

Bodywork and structure

  • The headline issue is cracking around the rear differential mounting and the spot welds in the boot floor. It is most common on M cars and lowered or hard-driven examples. Look up under the rear at the diff mounts with a torch and lift the boot carpet to look for split or lifting seams.
  • Rust is generally limited. Check the front of the floor where the sills bolt on, the boot lock area, mirror bases and the bolt-on wings and sills.
  • Crumpled inner wings or a rippled boot floor suggest past accident damage.
  • Hoods: check the seal between the fabric and the plastic rear window, which can lift and let water in, and look for a cloudy screen. Damp carpets point to perished door or header rail seals or poorly adjusted latches.

Engine

  • M43 1.8: head gaskets, crank and cam sensors, idle valve and brittle plastic coolant elbows.
  • M44 1.9: generally strong, but head gaskets can go after coolant loss; look for a blowing exhaust manifold joint and a weeping water pump.
  • Sixes: the plastic water pump and other cooling parts are a known weakness. An overheated alloy six can pull its head bolt threads, so any history of overheating is a serious warning.
  • Early 2.8 engines built before about March 1998 may have Nikasil-lined blocks, which could lose compression on poor fuel. Most were dealt with under warranty, but ask.
  • VANOS wear on later sixes shows as a rattle or grumble and flat power. The M54 2.2 can be heavy on oil.
  • Common oil leaks: oil filter housing gasket and cam cover. A cam sensor fault causes hesitation or stalling when hot.
  • On a cold start, listen for timing chain noise and check the temperature gauge sits centrally once warm.

Gearbox and drivetrain

  • Manual gearboxes are durable. A sloppy lever usually means worn linkage bushes.
  • Small-case differentials on lesser models can whine at high mileage. Listen for clunks from the rear on and off the throttle.
  • A worn dual-mass flywheel on six-cylinder cars rattles at idle.

Suspension, steering and brakes

  • Front dampers and wishbone bushes wear; rusty wishbones are best replaced complete.
  • Rear axle beam bushes and trailing arms suffer on neglected cars.
  • Check for steering rack leaks and torn gaiters.
  • Rusty brake pipes and failing ABS sensors are common MoT points. Four-cylinder cars have solid discs, sixes have vented ones.
  • Oversized or replica wheels on lowered cars harm the ride and may hint at hard use.

Electrics and interior

  • Fuel gauge senders fail; a cut in the carpet behind the passenger seat shows it has been tackled.
  • Rocking seats are caused by worn plastic runner blocks.
  • Slow electric windows, airbag warning lights after seat removal, crumbling third brake light lenses, corroded mirror pivots and milky headlamp lenses are all typical.
  • Central locking faults are often due to an aged aftermarket alarm.

Identity and paperwork

  • M Roadsters and M Coupes should have the wider bodywork, uprated suspension and correct S50 or S54 engine. Check the VIN and engine number against the V5C and confirm the model code with a BMW dealer or club decoding service, because lookalike conversions of six-cylinder cars exist.
  • Confirm there are two working keys; replacements need coding.
  • Ask for evidence of any Nikasil or diff mount repair.

Ownership today

Parts supply is good. Service items and many mechanical parts are plentiful new and used; for example, buying guides note that a used E46 3 Series steering rack is a direct swap. Some body panels, such as original bolt-on wings and sills, are now scarce or expensive. Independent BMW specialists are widespread across the UK and many know the Z3 well. Reinforcement kits for the rear diff mounts are available and are a sensible fit on M cars and any six-cylinder car that is driven hard.

The BMW Car Club of Great Britain (bmwcarclubgb.uk (opens in a new tab)) runs model registers including one for the Z range, and dedicated online Z3 forums are very active.

Questions to ask before you bid

  • Has the rear differential mounting and boot floor been inspected, and has it ever been welded or reinforced?
  • Has the cooling system (water pump, thermostat, expansion tank) been renewed, and has the engine ever overheated?
  • How many keys come with the car, and do they all work?
  • Is there history of head gasket, VANOS or Nikasil work, and is there paperwork to support it?
  • For M cars, can the VIN, engine number and build details be confirmed as genuine M specification?

Sources

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