The BMW E36 M3 is considered to be one of the better-handling cars of all time, and was awarded "Best-Handling Car" award by Car and Driver magazine in 1997. Available as a saloon, a coupe or a convertible it flags the BMW Motorsport badge as a statement of it’s high performance.

Visually the M3s were similar to the regular E36 3-Series with only a few distinctions. M3 had a prominent front air dam, aerodynamic side mirrors, and deeper side valance panels. Lightweight alloy wheels were equipping high speed rated tires. An M-Technic rear wing could be purchased as a dealer option, giving the vehicle a very sporty look.

In 1997 BMW released their SMG (Sequential Manual Gearbox) option as changing gears like a motorbike seemed appealing to many. Unfortunately the SMG was considered very aggressive in response and hard to use in every day driving and although more than 50% of totally new E36 M3’s were fitted with the device it is surprisingly unpopular today.

Production of the original E36 M3 ended in early 1999.