BMW 325ti Compact (E46) | PH Fleet
Thoroughly modern Mazda lasted a while, then...

There’s always a danger, when your job involves a lot of scouring the PH classifieds, that something will crop up that you might want. Or rather, something crops up that you might want - and can actually sort of afford. As so often tends to be the case, I really wasn’t looking (much) for a car when this Japan Red 325ti was listed. It was about the time the new, even less appealing M135 was shown; while the E46 was a nice reminder of when weird looking BMW hatches were at least kind of interesting, it wasn’t for me. My Mazda 3 was fulfilling its duties perfectly, offering exactly the kind of fuss free, easygoing transport I’d bought it for. The last thing I needed was a 150,000-mile BMW…
It would sell, anyway, what with the recently fitted Bilstein B12 suspension, Apple CarPlay, new brakes, water pump, thermostat and so on. The MOT was advisory free until Feb, E46s are still loved, and manuals remain the most desirable (even the five-speeds). I told myself to just let it go. We were going on holiday soon after, then there was Goodwood Festival of Speed, then there was also the small concern of not actually having the money to buy any kind of car.
We got back from holiday and the Compact was still around, now with an even more tempting price. People still really don’t like 3 Series hatchbacks, it would seem. Perhaps that should have put me off. The bank would all too readily lend the money, albeit at about four times the interest of the last time (thanks very much, Liz Truss). The more I thought about keeping the Mazda, the more the prospect of changing appealed - it’s just a bit too sensible (and slow) for something that doesn’t have to be used every day. The idea of having a car I liked more and a few thousand pounds appealed a lot more as well. Even if the jeopardy of an old BMW didn’t.
I had to enquire. Jon, the seller, could not have been better to deal with. As well as his very detailed ad (plus a great collection that includes a Giulia Quadrifoglio and Caterham Seven), he was always willing to chat over message and phone. I was all prepared to view the Compact (about 90 minutes away) on a Sunday, when Jon said someone was very keen to view it the day before - drat. It was going to go then, surely. But it didn’t. Perhaps that should have put me off, too. Undeterred, I picked up where we’d left off and within a couple of days the BMW was on my drive.


To say I’m thrilled would be a considerable understatement. Despite the detail of the ad, I was fully prepared for an eight-owner, 150,000-mile, £3k 3 Series to be a bit rough around the edges, but it very much isn’t. The paint is still really red everywhere, there aren’t many scratches at all, the diddy 16-inch wheels look ace, everything works inside and it starts on the button. A great wad of history, including the original invoice, was great to see, too. The driver’s seat will need a bit of attention soon, but other than that it seems in remarkably good condition.
Where the Mazda could sit outside and never really be thought about, I’m finding every excuse possible to poke around the Compact. It’s the new car excitement that never materialised before, and it feels fantastic. I hadn’t realised how rare this 3 Series was now, either, with HowManyLeft suggesting just 14 SE-spec 325tis are out there. I enjoy having something less common, for sure. No doubt the appeal of a much more modern and popular car will come to the fore right after the Mazda is sold...
There aren’t any great BMW plans, other than to keep it looking as red as possible, take it to all the car places I’d feel a bit embarrassed to take the Mazda (starting with PH26) and get charging on towards 200k. I’ll have it inspected properly, just to see what will need doing in time, and a bit more noise probably wouldn’t go amiss either, however for now I’m overjoyed to have a different red hatchback outside. More on actually driving it next time - see you at Bicester!
FACT SHEET
Car: 2003 BMW 325ti Compact
Run by: Matt Bird
On fleet since: July 2024
Bought for: £2,999
Mileage: 150,598
Last month at a glance: Fortune favours the brave, doesn’t it?






Anything that is roughly 1200kg and has near on 200hp (fitted with a shorter final drive too) is going to be fun!
I remember driving one and thinking the performance stats were way off - felt every bit as quick as a E46 330ci
I put an M54b30 in it with S50B30 exhaust manifold, Gaz Gold coilovers, bigger brakes and Nangkang NS2R's, stripped out some weight and had a decent enough track car for not much money. I've also got an LSD for it but haven't got round to fitting it.
I also fitted a Hopwood Motorsport uprated oil pump as the normal one tends to sheer bolts on track and can cause all sorts of bother to your engine.
At the time I had an E46 320d, my mates car reliability wise hands down a better car mine was an early car on an S reg bought at 2 years old ex company car with 90,000 miles on it , in 18 months it went & I've never bought another BMW.
Both compacts my mate had were good cars sadly both were Autos & the 325 Ti a horrible light mint metallic green.
£3 grand for a 150,000 miles E46 325Ti seems strong money at least 5 on Autotrader sorry , with a lot less miles for that money.
The straight six is a brilliant engine & still sound great.
Anything that is roughly 1200kg and has near on 200hp (fitted with a shorter final drive too) is going to be fun!
I remember driving one and thinking the performance stats were way off - felt every bit as quick as a E46 330ci
https://www.pistonheads.com/gassing/topic.asp?h=0&...

Yours is a later car with the red rear lights which are a massive improvement on the clear ones that mine had; they looked s
t back then and haven’t got any better. I really liked mine; it drove well and returned a smidge under 32mpg no matter how I drove it. Unfortunately it was quite needy and at that point I didn’t tackle anything myself so it had to go.
325ti is a comparatively amazing purchase. Any BMW with Ti on the badge ( bar the latest FWD monstrosity BMW released ) is a good start. However E46 based compact was so blooming ugly. but its still a justifiable purchase.
Although 2995 is 130i money and that would have been the infinitely better choice, from engine and looks and reliability / rust.
but its not a Mazda potato so that's the best bit, oh and its Red which is still a surprisingly rare colour in E46 let alone BMW world.
Even back in the late 2000s, truly good ones were rare. Early ones became tatty very quickly; even then, rear arches were beginning to go crusty - and that was only what you could see. The early interiors were lairy colours that wore badly, and (as stated above) a lot became donor receiver vehicles for 6 cylinder transplants - particularly as RHD countries were denied the 323ti.
Any I've looked at in the last few years have been advertised as good, but in reality they've been average. The last of the E36s - 1999-on are probably the best, but buy carefully.
The E46 Compact was less of a parts bin car than the E36, but even so, BMW did some strange things with colours and specs. Full length fabric sunroof anyone? OK, that was a special edition, but the occasional blue dashboard & seats?
In E46 Compact guise, I've only ever sampled my friend's 2001 325ti; it drove well (very well), and felt much like my brother's early E46 328i power-wise (both had 192 bhp on paper IIRC).
My heart says I'd prefer an E36, but find me a truly good (yet affordable) one.
The E46 Compact has never grabbed me like the E36 Compact, but maybe that's my rose tinted glasses.
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