Overview & Reviews

BMW swaps out the four-cylinder engine in the 318 coupe and convertible for a 168-horsepower 2.5-liter inline six -- these cars become the 323is coupe and 323i convertible (why it's "323" and not "325," we'll never know). Meanwhile, the 318i sedan and 318ti hatchback continue on unchanged. All cars get standard side airbags this year, except the 318ti, on which they are optional.

• One of our all-time favorite cars. Carves turns faster than your dad carves Thanksgiving turkey.

• Price is a bit steep. Interior is a bit cramped.

User Reviews:

Showing 1 through 10 of 65.00

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  I will keep this car for many years. - 1998 BMW 3-Series
  By soltnutz - August 17 - 11:57 am

  I bought the car 2 years ago from someone who had it for 11 years and never drove it in the winter. The car is near perfect condition with a few modifications ( the previous owner liked to go fast ). M3 cam, header, M50 intake, AA chip and 3 inch exhaust, full locking diff plus new adjustable suspension. The ride plus handling is tight.

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  Great - 1998 BMW 3-Series
  By zapban - March 1 - 9:34 pm

  This is actually my first car, and I love it. Its fun, and has been reliable. The car is quick, and can corner great. The only bad thing is the cup holder, which is the only thing in suggested improvements. The bits are a bit expensive, such as the dash lights. This isnt just great because its my first car, one of the cars in the house is much faster and is for wheel drive. Not a whole not of trunk space, but I can fit my guitar in it, and really anything I need to fit in it. The back seats also lack a bit of leg room. Nothing I can say is bad about this car, so I do recommend this.

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  Very Reliable Owner Must Have Basic Mechanic Skills - 1998 BMW 3-Series
  By skydog526 - March 16 - 8:32 pm

  With out a doubt the BMW e36 M40 engines are a very reliable engine. These cars require routine maintenance such as oil changes with synthetic oil, oxygen sensor replacement every 30,000 - 60,000 miles for best fuel air mixture ratio and mpg performance. The cooling systems are prone to wear due to plastic BMW OEM parts however, replacing the thermostat, water pump and radiator with full metal parts is highly suggested. BMW parts for the E36 series are relatively inexpensive and can be found on the internet comparable to the price of Honda, or Toyota parts. I bought my 1998 BMW 318I in August of 2012 with 176,000 miles. I have not had any mechanical issues with it. I do my own maintainence

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  First 90 days - 1998 BMW 3-Series
  By jkoopman - November 24 - 9:54 pm

  I bought my 98 323is in September of 11 with 55,400 original miles. It has been about 90 days and the car has been a pure joy to drive and own. The M52 is the least powerful of the 2.5 I6 engines available but is still reasonably quick with a wonderful smooth character and a good amount of torque. The balanced feel and handling put a huge smile on my face in every corner. It is also comfortable and reasonably quiet on the highway inspite of its tight, sporty character. This car was well maintained by its previous two owners and it shows. I now understand why BMW calls their cars the "Ultimate Driving Machine".

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  Beware of the convertible top! - 1998 BMW 3-Series
  By domermom - October 12 - 8:01 pm

  I just bought this car a couple of months ago. The previous owner spent over one thousand dollars at a BMW dealer attempting to fix the convertible-after all-that is why you buy this model. Although it does go up and down, it doesnt do it anywhere near as smooth as you would expect from a BMW. I am still going back and forth with the dealer I bought it from to get it right. Dont get me wrong-I LOVE the car_but I bought it for the convertible aspect and it is a very expensive and difficult thing to deal with.

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  1998 BMW 328i sedan manual - 1998 BMW 3-Series
  By Twotone - August 26 - 4:14 pm

  The BMW 3 Series is the best balance of luxury, sport, comfort, fun to drive and style. No other small sedan comes close. No other front engine, manual transmission RWD sedans are currently available. I get 21 MPG around town and two road trips of 33 MPG driving 80+ MPH. Other have mentioned reliability issues. In the 4+ years I have owned it, all I have done is oil changes, brake pads and tires. This has been the most reliable car I have owned (Ive had 20+ cars). It still looks and drives like a new car after 11 years and 95k miles.

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  1998 BMW 3 Series - 1998 BMW 3-Series
  By THE "G" - May 9 - 1:30 pm

  Bought my Black 328i in 2000. 2nd owner it was a lease vehicle. I have been a naughty owner and have only changed the oil, rotors, brake pads, brake sensors & tires for the most part. I put TVs in the head rests, Chrome 18" rims w/z-rate tires and a kicking stereo system in addition to the HK system that included a tv in the radio as well. Ive driven this car through out Germany, Belgium, Luxemburg, the Netherlands, and from coast to coast (in the US. The tint came in handy) plenty of times and never has it stranded me. I had a problem with the acceleration in auto and would have to drop down to manual but it still never starnded me and continued to out perform other vehicles.

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  Fun car but watch out for maintenance - 1998 BMW 3-Series
  By B-Man68 - January 6 - 4:13 pm

  A lot of fun to drive but maintenance costs are very high. When my transmission went out I learned that BMW claims the earlier 328s have a "lifetime transmission" with a "lifetime fill" of fluid and do not recommend a tranny service. I followed the recommended maintenance to a T and never had the tranny serviced. Replacing it cost me over $4k. Had I had it serviced it would not have failed when it did. BMW now recommends a tranny service on newer models but still not on the older ones. Even the fluid mfgs recommend changing the fluid. Where BMW came up with the "lifetime" claim is beyond me. I ended up getting the money I spent on the new tranny back through small claims court.

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  I love it!! - 1998 BMW 3-Series
  By k1llahbabe - February 2 - 2:00 am

  I love my 318ti, the only thing about it that i dont like is how you cant move the steering wheel, i can never get confortable but other then that its a pretty nice little car!!

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  1998 318ti with Sport Suspension - 1998 BMW 3-Series
  By jobu - October 1 - 2:00 am

  Handles and looks great. Has been very reliable except for some bizarre problems for considering the age of the car. Catalytic converter went at 50k mark and we also found out that it was loosely connected so there was constant rattling from early on which no one could diagnose. Drivers window assembly collapsed at 40k mark. Gas cap has been a problem since early on...doesnt seem to fit well after a while causing a check engine light to appear as a result of a poor vaccuum.