If Detroit could get the prices that the Germans do for options, they’d have billions in extra profits per year. Take the Ford Contour I drive. It was available with a 125 horsepower 2.0 liter four and a 170 horsepower 2.5 liter V6. How much extra did Ford charge for the six, which flat out transformed the car? $500. And still most Americans opted for the four.

Now consider the BMW 3-Series. Except for the really big bucks (instead of just big bucks) M3, every 3-Series comes with one of two sixes, a 184 horsepower 2.5 liter or a 225 horsepower 3.0 liter. These two engines share a basic design, and probably many parts as well. So in terms of manufacturing cost they’re probably closer than the two Contour engines, and you might expect the extra cost of the 3.0 to be fairly low. But remember, prices are based on what people are willing to pay, not manufacturing cost. Do the math, and it turns out that even after adjusting for the extra standard equipment on the 3.0 models BMW charges a bit over $5,000 for the 3.0. Ten times what Ford charged for a six over a four, and yet I bet a larger percentage of 3-Series are purchased with the larger engine.

Better marketing? No doubt. But there must be more to it than that. I’ve driven the 3 with both engines a number of times. Here’s how it shakes out in my mind.

BMW 3-Series Reliability

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Styling

For this review I drove the sedan. People tend to love how this car looks. That said, I’m not sure the same look would fly on an American or Japanese car. Take away the large wheels—large wheels can make all but the most hopeless designs look special—and you’ve got a nicely proportioned yet fairly bland car, at least with the sedan. (The coupe has subtly different proportions and they lend the car a much more aggressive stance.) The previous 3-series had very distinctive exterior styling, with an appealing amount of edginess to it. The current 3 sedan looks like the previous car after some serious weight gain. When people gain weight their facial features tend to disappear. That’s what seems to have happened here. And guess what? The new car is about 150 lbs. heavier than the last generation car. Maybe just truth in styling? I’m not saying the 3 is ugly. Far from it, it carries the extra weight well, like some athletes when they add a few. I just miss the lean edginess of the old car.

Inside the current 3 traded the hard-edged hard plastics of the previous generation car for a truly luxurious interior. It’s less sporty, but the additional luxury is hard to say “No” to. For good or bad, the optional wood suits it better than the standard metallic finish.

What does the 3.0 offer over the 2.5 here? Not much. Both received one-inch larger standard wheels for 2001, so that the 325 now has 16s and the 330 17s. This is a very wheel-oriented design, so it looks better the larger the wheel, but 16s are certainly sufficient, unlike the old 15s. With the Sport Package, which I highly recommend, even this difference goes away. Both the 325 and 330 then have 17s, the only difference being that the 330’s rear wheels are 20mm wider. Only someone with very sharp eyes is going to tell the two apart without looking at the badge on the trunk.

Accommodations

As I’ve said many times before, I’m not a huge fan of the driving position in BMW sedans. In the current 3, the steering column and instrument binnacle are an inch or two too high for my taste. I’d appreciate a less obstructed view forward, and the wheel just feels a bit high to me, even with the power seat up an inch or so. (Tilting the wheel down is not a solution, for then the column angle feels strange.) I’m not saying I couldn’t live with it, just that I prefer the driving position in the Japanese competition (Lexus IS 300, Acura TL-S, Infiniti G35). Also puzzling: with such a large instrument binnacle, why are the gauges so small? (Click on the hyperlinks to read my reviews of related vehicles.)

I recommend the sport package to get the sport seats. The standard seats, though equally comfortable, have small side bolsters, and do not hold you in place in turns.

Many people charge that the rear seat of the 3 is cramped. I personally don’t see it. Maybe they’re larger than me—I’m 5ֽ”—but with the front seat adjusted where I like it (as far back as I can put it and still depress the clutch) I still have plenty of legroom, and adequate headroom. The cushion could be a bit higher for proper thigh support, but this is a common flaw even in larger sedans, and the 3 is certainly better than average here. The stats bear me out. In terms of headroom and legroom, the 3 is within fractions of an inch of the 5-Series. The G35 has more rear seat room, but the Audi A4’s rear seat isn’t quite as good, and that in the Lexus IS is downright cramped. Bottom line: I find the rear seat surprisingly roomy considering the size of the car.

The trunk is usefully shaped but tight on space. For about $500 BMW will sell you a fold-down rear seat for additional cargo room. I personally place a great deal of value in this feature. But how can BMW charge so much, when it’s standard in cheap Korean sedans? I guess for the same reason they can charge $5,000 for the 3.0 over the 2.5. Magic.

On the Road

The 2.5 is plenty of fun. (My review of the 325i can be found here.) That said, the 3.0 transforms the character of the car. There’s the additional torque. Where the 2.5 must rev to make good power, the 3.0 kicks you in the small of the back at tip-in. But it’s not just this extra kick; the larger six is also more visceral. Though the 3.0 cruises quietly, every time you tip into the throttle, even just a bit, you hear the somewhat boomy snarl of the exhaust. The overall effect is to make the driving experience more involving and thus more fun, if less refined.

The stick attached to this engine shifts easily enough, with low effort and a pleasantly mechanical feel. That said, throws could be shorter, and I personally wouldn’t mind a little more effort. Given the luxurious character of the current car, I won’t give anyone trouble for going for the automatic, even if this is a BMW. While I suspect the 2.5 might feel weak with the automatic (I haven’t driven this combination), the 3.0 is torquey enough to have plenty of fun even without the direct connection a manual provides. In my mind, you can have fun two ways in a car: by skillfully working a high-revving engine with a stick, or by enjoying the sheer grunt of a torquey engine. While the latter can be done with either transmission, with an automatic this is the only way. And there’s something to be said for the total concentration on the throttle an automatic allows with a torquey engine—just stab the throttle and hang on. The transmission kicks down readily, and shifts smoothly.

Supposedly steering effort was firmed up for 2002 in response to criticism that it was previously also a bit much like that of a Lexus. Maybe it has been. I didn’t drive the old and new car back-to-back, so I honestly can’t say whether the changes make a difference. What I can say is that it needs to be firmer still. The steering is precise, and feels better the harder the car is pushed. The only problem is I'd also like it to feel entertaining when I'm not pushing the car all that hard. As it is, I received more informative communication of what was going on where the rubber meets the road through the seat of my pants than through my fingertips.

I vastly prefer the quicker, firmer, simply more alive steering, shifting, and braking of the M3. Perhaps BMW feels the 3 must compete with the Japanese, or must be relaxed enough for long distances at high speed on the autobahn. But I look to BMW for excitement, not relaxation, and I don’t drive on the autobahn. Sportier tuning of the major controls should at least be an option, perhaps part of a true sport package. Maybe this is what the M3 is for? I haven’t driven one, so I cannot say whether its controls better suit my tastes. But I honestly see little need for more power than the base engine offers. With properly engaging controls, less power can actually be more fun in typical driving conditions (i.e. at legal speeds). Even for those who must have the greater grunt of the 3.0, and I can see the attraction here, the option of sharper, more alive controls would be welcome.

At least the basics are here. The chassis is extremely well balanced, and can be precisely placed with both the steering and throttle. With the 3.0, you can just about do all of your steering with the latter. (The Infiniti G35 could learn something here.)

Even with the sport package, the ride is composed on just about any surface. Noise levels are not as low as in the larger, more expensive 5-series, but are still quite low for this size car. As I’ve been saying, the 3 is now at least as luxurious as it is sporty.

Pricing

Well, I began with the issue of pricing, and now the time has come to render judgment. If only I could. Rationally, five grand is way too much money considering the incremental manufacturing cost. Push reason aside, though, and the 3.0 transforms the car. So it really does depend on what you’re looking for. If you strongly prefer a solid push in the lower back, then try to find that extra five grand, and do whatever it takes to forget how much less expensive the 325i is.

Either way, the 3 costs more than any competitor except the Mercedes C-Class. In the case of Japanese and American competitors, a lot more. Even without a few of the options on the car I drove, a 330i with sport package, leather, and sunroof runs right at $40k even after the usual (fairly small) dealer discount. Is it worth it? Though I’d prefer more animated controls in the 3, the others are even worse in this regard (with the exception of the boy-racerish Lexus IS 300). So for a combination of luxury and dynamic performance, the 3 remains the leader of the field. Me, I’m cash constrained, so I’d probably go for the Infiniti G35 even though it’s less fun to drive. But for those with the cash this is still the car to have.

Last Words

The 325, as great as it is, leaves me wishing for a more engaging car. Something with more Z3 character in the steering, shifter, and brakes. The luxury-sport balance has gotten out of whack from my pespective. The 330 doesn’t alter the feel of the controls, but does include a more engaging engine, and thus partly redresses the imbalance. As it stands, and I hate to say this as a die-hard manual driver, the automatic with 3.0 liter might be best suited to the luxurious character of the car.

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Amount Paid (US$): 42,570
Model Year: 2002
Model and Options: 330i with nearly everything