Drive a well-preserved example of the fourth-generation 3-Series (‘E46’ in BMW speak) and you might be surprised to discover it was actually launched back in 1998, so modern are the basic elements of the driving experience. Sure, newer models may have more tech and gadgetry but in the fundamentals of handling, performance and driving feel the game really hasn’t moved on in any meaningful way.

Following BMW’s philosophy of evolution followed by revolution, the E46 was essentially an extensive overhaul of the previous ‘E36’ generation, itself a state-of-the-art production which left the competition scrabbling to catch up. At the UK launch in 1998, the range was limited to the four-door saloon, available as with four-cylinder power as the 1.9-litre 318i rated at 117bhp, plus six-cylinder engines in the 148bhp 2-litre 320i, the 169bhp 2.5-litre 323i and the 190bhp 328i. The sole diesel in the range was the 134bhp four-cylinder 320d.

Shortly after launch, the 316i was added at the bottom of the range, a detuned version of the 318i engine offering 103bhp while a new market niche was created with the 3-litre straight six diesel powerplant in the 181bhp 330d.

In late 2000 the petrol engines were rejigged, the 323i replaced by a new 189bhp 325i and the 328i eclipsed by the 231bhp of the 330i. For 2001, the four-cylinder petrol units were revised with the new Valvetronic technology, the 316i now rated at 115bhp and the 318i at 141bhp. Meanwhile, a new (2-litre) 114bhp 318d was added to the range, the 320d gained common rail injection to bump output to 150bhp and the 320i was stretched to 2.2 litres and 170bhp.

For 2003 the engine range was revised again, the 318i uprated to 150bhp and the 330d boosted to 201bhp.

The two-door coupe arrived in late 1998 and the Touring estate in early 1999, followed by the convertible in late 1999 and the Compact from mid 2000. The saloon and estate were facelifted in 2001 with revised headlights, reshaped bumper, wings and grille and revised rear lights, while the coupe and convertible were facelifted in 2003 with similarly revised lights, grille, bonnet and front bumper.

In May 2005 the saloon and estate were replaced by the new ‘E90’ model (technically the saloon was E90, the Touring E91), with the E46 coupe and convertible produced until May 2006. The Compact was discontinued at the end of 2004, effectively replaced by the 1 Series.