Faults:

Gearbox failure at 110000.

Second gearbox failure again at 120000.

Both front lower arms failed.

Airbag warning light kept coming on. 3 trips to the dealer to fix. Finally soldering a joint.

Boot/trunk switch failed.

Transmission noise like driving over a cattle grid at 70mph. Dealer unable to fix.

Rear tyres replaced too often.

Windows failing.

Alarm gremlins. When activated lights flash but alarm doesn't sound.

General Comments:

Yes, a super car if only it was better made...

Watch out for front suspension wearing out.

Differential noises.

Brakes and pads wearing out super quickly.

Airbag wiring incorrectly fitted under seat, causing the airbag light to come on.

But worst of all, small plastic flaps in the inlet manifold braking off and being sucked into the cylinder and destroying the engine AND...

If you have a steptronic gearbox, start saving up for a bill of at least £1500 when the gearbox fails.. this isn't a maybe but a definite for most diesel autos.. I know cos it has happened to me... twice. If you don't believe me, just research on the Internet. Search BMW owners forums and these are common and expensive faults occurring to not just higher mileage cars like mine, but newish and low mileage cars..

RESEARCH BEFORE YOU BUY AND BE PREPARED FOR A LOVE - HATE RELATIONSHIP.

YOU HAVE BEEN WARNED.

Faults:

Starter motor (under guarantee).

Rear wheel or differential bearing (~20,000 miles).

Ignition coils all changed by dealer free of charge (~30,000 miles).

Coil failure, (45,000 miles).

Interior mirror fell off windscreen, only fix is a new windscreen (60,000 miles).

Vacuum pump, resulting in no brakes (65,000 miles).

Drivers side electric window switch (70,000 miles).

Coil failure, (77,000 miles).

Coil failure, (78,000 miles).

Front suspension bushes, car failed National Car Test, (78,700 miles).

Bump stop rubbers front need to be replaced + gaiters over shock absorber rods front and rear.

Air-bag light on, seems to be a problem with the "wiring or sensor" on the passenger seat.

General Comments:

Excellent handling and comfortable to drive.

Not too bad on fuel on long journeys.

Jerky and hesitant on acceleration almost all the time.

Traction control too enthusiastic, this cuts the power just when you need it, i.e. pulling away

Reliability and cost of repair very disappointing.

My previous car, a Volvo S40 turbo, was a lot quicker and gave NO trouble over 90,000 miles, other than the battery, which was replaced under guarantee.

Faults:

Nothing has gone wrong (touch wood)

General Comments:

It's easy to understand why these cars are so commonplace on the road, as they do pretty much everything you could ever want.

Performance: Superb. 0-60 in around 6 seconds and pulls like a jumbo past the ton. Sounds fabulous, totally smooth and astonishingly frugal. My best average on a tankful was 33 mpg, although average is more like 28-30. For the performance on tap, that is amazing. The engine's metallic rasp ad induction howl at high revs makes the hairs stand up on my neck.

Handling: Again, brilliant. Near zero body roll, sharp steering, great brakes and lovely controllable oversteer at the limit if you disable the electronics. Can feel a little large and cumbersome in the really twisty stuff, but for most A and B roads it's entertaining enough to warrant turning around and doing it all again (and I've done so)

Build quality: Peerless. Tiny, millimetre precise panel gaps, deep lustrous paint, quality plastics and a precise, machined feel to all the controls. Still looks, feels and drives like a brand new car.

Practicality: Okay for what it is, although adults complain about the lack of rear space. Comfortable for whole tanks of fuel at a time, hard wearing materials and low noise levels.

Equipment: Everything I need. A cracking Harmon Kardon hi-fi, electric windows, electric mirrors, climate control and a set of gorgeous 18" alloys.

Costs: Becoming more affordable now. Had a budget of UKP 15,000 and this came in just under it. There was a huge choice too. Good economy for what it is. BMW servicing a rip off, but independents charge less and in my experience do a better job (more personalised service). Insurance very reasonable - UKP 600 for a 30 yr old doing 30k PA with business use, car not garaged in low/mid risk area.

Unless you transport adults in the back regularly or need acres of boot space, this car does pretty much everything. Above all that however it's great fun to drive, searingly quick, well made and it looks utterly gorgeous. The E46 is the first 3 series to my mind that hasn't dated the instant its replacement arrived. The only thing I don't like is the naff image and the lack of exclusivity, but I can live with both.

Buy one. You won't regret it.