Thanks for all the comments. A lot of horror stories. Maybe I'll just pick up a 350Z or G35 and put the funds I would have spent on the M3''s upkeep and upgrade it with a turbo or something.

 

I used to love the E46 M3 when it first came out. Off the top of my head, the known & common issues were:

-SMG pump failure & eventual clutch replacement
-Subframe cracking
-Vanos failure
-Rod bearings (there was a recall)

And then you would need a entire cooling system overhaul around 90k miles for all E46s regardless if it was a M or not, but it looks like you've made your decision already.

 

I have been looking as well, and I want the SMG I deal with rush hour traffic and just don't like manuals any more. 10yrs ago I wouldn't touch an auto sports car...things change when you get older. I had two BMWs before my F and I said never again but the 46M3s are a car on my list to own before I die.

 

Just ran into my buddy with the e46 m3, he said his car is in the shop cause his fuel pump just went.... -___-