I Bought A BMW E46 M3 For $6,000 And It's Worse Than You Can Imagine
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"A mechanical nightmare to own" he says unironically, standing 15 feet away from an Esprit...
And Hoovies R8... AND a home made McLaren..
@@sigen7053 it's an 'artisan' McLaren😁
This is top tier comedy right here☝🏽
@@joshuakwayiba7603 indeed
P
Honestly, I expected a LOT worse when Freddie told us it cost $6k. The fact it drives, has no major rust issues and as a 10 foot car looks cosmetically ok, that's a decent bargain. Obviously that may change once you get into the woods, and the big risk is the cheap manual conversion, but so far, it looks an ok buy.
Yes, need to see the status of the engine once it’s out.
@@SasquatchChief No need to take it out. As the previous owner (not the one who stanced it, the one who corrected that awful decision) I can tell you it has had a full rebuild with a new oil pump, rod bearings, a head fresh out of the machine shop, rebuilt and upgraded vanos components across the board, and many other things I can't think of currently. The oil leak was the last thing I was chasing down before I was forced to sell the car, though I believe it's coming from the high pressure line that feeds into the top of the vanos unit. The clutch and flywheel are brand new as well, but the set I chose was a single mass flywheel which explains some of the vibration. The center support bearing was definitely on it's way out though, so that's most likely what he's talking about in the video. The cheap manual conversion is because doing it properly is $1500+, and in college I simply couldn't afford that yet. I did have plans to eventually switch out this shifter because even I wasn't aware of how bad it was when I bought it.
@@GeekyGamer167 I like the honesty! I hope he does it justice
@@GeekyGamer167 With all that work, why so cheap? I woulda expected a sub $10k price because it's so clean.
@@alexandermckay8594 He didn't show this in the video but the cluster was swapped. So the actual mileage (which is accurate) is 165k miles. But the odometer shows 110k. Also, it's a rebuilt title that leaks oil, needs all new suspension (the control arms are bent all over because New York roads don't treat cars well), and also needs a LOT of cosmetic work. In general, it was hard to find someone actually willing to buy the car in it's state because everyone wants the "mint condition only driven on the highway" blah blah blah, and even with everything I had fixed, it was hard to sell the car.
hello iam a 33 years old guy and iam currently fighting the cancer, the BMW e46 is my dream car and iam living in Iran, we dont have the m3 variation in our country and we just have the 4 door sedan with n46 inline 4 engine, Tavarish my man you are riding my dream car, i would give anything to be at your place reving this car and be able to work on it, i hope some day i would be able to have one and have the same feeling as you reving it in second gear like the video. hope i would be alive till you start working on it and seeing it restored and it getting the attention it deserves. if i were you i would install a m3 GTR500 body kit on it and make it a NFS most wanted m3 GTR replica. much love for you guys.❤
I hope you’re doing well man
I swear Samcrac and Tavarish are competing on how many junkers they can pick up without actually finishing anything, must be a Florida Man thing 😅
I could smell the interior as soon as you opened the door.
Yup they make a habbit of it. Mostly i ignore it but it gets annoying.
It's an Idiots With Money and a camera thing. If he wasn't fat he'd look like a homeless dude. "That's not slow" 🦥🦥🦥
Definitely an exaggeration of condition. Very good for 6k. Worth exactly what you paid for considering the market right now. Bought mine back in 2018 for 9k with none of these minor issues outside of rock chipped paint. This is going to be one of your better builds tbh. Looking forward to seeing the end result.
Lucky I want one and I want it to look like the iconic need for speed m3
You really expect him to actually finish a car and not just make 2 vids on it and let it rot?
I would love to be able to find another good e46 m3 , it was my most reliable m3 I’ve ever had and I had the e92 and I currently have the f80 . I miss my e46 m3.
this aged very well@@sandtanmaroon
I've daily driven my e46 m3 for 2 years now; bought it at 109k, and it has 142k on it now and hasn't skipped a beat. Yes they are more expensive to maintain than a something like a Honda, but if you do your research, buy the right car, and do preventative maintenance, they really aren't too bad. I spent more money maintaining my MK6 GTI (even with a warranty intact for some of my ownership) than i have on the m3.
I ran my M3 at Nurburgring for 3 years. And BEAT the snot out of it. My biggest expenses were tires and brakes. Car never gave problems and loved to be hit hard. Only major expense was when I money shifted and blew the clutch. Oh Wel. Still love that car I miss it
@@yagesz what happened to it ?
my buddy and i are big time e46 guys and we would buy this instantly and make it a proper manual. Then just enjoy the car
30k isn't much tbh. That should be expected. 200k is where you'll start to see things go down. At least once you start creeping up on it
I love my mk6 gti so much, but it's currently sitting in my parking lot with a nice new window installed right into the block! So I get you lmao
that car is quite honestly a steal for 6k. as long you know what you’re doing. shifter needs adjustment but should work fine
E46s are great overall (granted I owned one for 14yrs), and I actually think this was well bought for $6k. Parts availability and cost is pretty good, eBay Motors or otherwise, and they're not a nightmare to work on. I suspect this will turn out pretty well.
But after getting rear subframe intact - in higher power levels... it just breaks from car, because floorpan was designed poorly. In 316i i doubt You would lose rear subframe :D
@@mmllmmll22 The car designed for the 333hp in came with, most cars from this area break when you overpower them
Definitely not a bad starting point! It’s good that there are still parts readily available to bring this M3 back to life. Can’t wait to see you build it better!!
I hope he builds it better than the Z06 in Car Trek! Ha ha just kidding…sort of…
You'll never see it again.
Hey! As the previous owner, I thought I'd clear up a few things here. First off, the engine is a fresh rebuild with new rod bearings, oil pump, a freshly reworked head, rebuilt and upgraded vanos (exhaust hub had the tab snapped off when I pulled the motor apart) so the motor itself is solid. The oil leak I believe is from the vanos high pressure line, it was something I had been tracking down for a long time but wasn't ever able to fix. I did the manual swap with the RTD shifter due to cost reasons, and wasn't aware of how difficult it would make it to find 1st and 2nd, otherwise I wouldn't have done it. The clutch and flywheel are brand new, but it's a single mass setup which explains part of the vibration. The center support bearing on the driveshaft is most likely bad, and this was also something I didn't get around to. The rear subframe was reinforced, so that's not a concern anymore either. There's many more things that I fixed/worked on over the years, so this car is actually in a really good state outside of the oil leak, suspension, and driveshaft. Also the oil temperature does work, I reprogrammed the range so it made more sense compared to how it is factory.
@@GeekyGamer167 wish you had sold it to me lol!
@@ShopLifeTV I was also considering selling to M539 Restorations... Should have gotten all of you into a bidding war
Would love to see this remade in a similar way that the Mclaren was done. Possibly convert it to the M3 CS spec. That would be amazing.
Fully agree specially since are plenty people who build NFS Most Wanted GTR replicas out of these..
Yess do it like the mclaren
@@poplaurentiu4148 Plenty? Or not enough?… I’ve only found like 2-3😂
@@poplaurentiu4148 No need for another NFS MW build. I want to see it OEM, factory spec but built to the same standards of the McLaren.
@@Otosama420 oem factory is the only way to go for m3s, i hate that rice burner shit
My 02 M3 has 329,583k miles on it right now as I drive to work and I never have any problems with it and still runs like a champ and never had to replace anything big on it and hardly anything small except normal wear and tear. I drive it everyday and from the northern most part of Tennessee to Atlanta, Georgia at least once a month. I did make sure that it had been taken care of before I bought it. You bought the wrong tree E46 brother. I won't ever sale my M3 I love it!
This is going to be fun to watch haha!
You look like you work on cars to help others hmmm
Big fan Chris
I could smell the interior as soon as you opened the door.
mmm. crayons...
Agreed,bloody awful!🤯🤔👍👌🙈👿
11h ago wut?
Smells like bro dude.
@@MobbDizzle smells like dude bro
The e36, e46, e39 of these years were some of the best bmw’s ever made. Very reliable if maintained well. This e46 M3 being the most legendary M (in my opinion) of all time changed the game and shifted the whole industry when it came out. I’m an Ex Audi Master Tech but I’m very familiar with these cars and looking forward to this build 🙏
I agree! They have got more ugly ever since.
e30 m3 really changed the whole industry, E46 was just perfected formula of E30.
Your very wrong.. E30 M3 is the most legendary BMW ever.. if say a sharknose is second to that
@@ETH85 its all opinions, nobody is wrong.
@@gladdy6412 The E30 M3 was a terrible seller. Terrible. They grew legendary over years with racing results and eventual classic status. But no owners are exactly complimentary of how powerful or smooth or luxurious they are. “But raw feel” !! 🤔😜
Long time e46 owner, I looking forward to this build. First thing first is the big 3, rod bearings, vanos, and rear subframe reinforcement. As far as the expansion tank I believe the M3 cooling system is more stout than the non-m counterpart, not as a big of an issue, but as preventative maintenance I would re do the cooling system I hope you do a sick NA build with CSL airbox, cams, exhaust, and full custom tune.
M cars have a lower temperature thermostat so the plastic parts don’t get baked as fast.
Should definitely watch Mat Armstrong e46 M3 rebuild.
VANOS is a bit blown out of proportion. Same with rod bearings. Odds are it needs them at that mileage, but it's effectively a wear item that can generously be done every 100k for total peace of mind. Karbonius airbox and Schrick 288/280 cams are the way. Ask me how I know 😉
@@alexbrown916 i know the e92 bearing issue well...but whats causes the premature wear on the e46 ?
@@BETNCORT The same issue. As with many other BMWs that suffer the same problem
I'm glad you talked about the rear subframe body cracking. Every E46 (and E36) needs the re-enforcement so you don't drive around a corner and wonder why the back of the car is going away and the wheels and tires are going the other way.
"Build it better....." Remember when modifying, dont forget the rear axle 😉😅
Yep that means we’ll see the follow up episode in 18-24 months 🤣🤣🤣
I work at an euro shop. We usually send the transmission bellhousing for machining for smg to manuel swap. If you already haven’t done it. They also sell it on eBay just the bell housing. I’d recommend for maintenance .water pump, thermostats, valve cover gasket. Coils, plugs, rear and front main seal. Oil pan with gasket. Belts and tensioners and servicing the rod bearings.
So pumped for this project!!!
Was waiting for this conversation; Tavarish: How much will it cost to build it better? Jack: 10 to $15,000 😃👌🏾
Build it back better?
@@adamt3332 haha most certainly
@@adamt3332 you sound like boris Johnson n the WEF build back better!
@@br4d101 boris, even king charles or joe Biden... or Claus Schwab... yeah thats where this sh*t came from...
Same
The problem with these cars are the owners. When they got cheaper the people that bought them barely had the money to put fuel in them let alone maintain them properly. That said, find a nice one with the 6 speed (with no pointless mods) and its a wonderful car and is definitely an appreciating classic. A dog like this one needs to be turned into a drift car or just parted out.
Lol not really. A BMW will break down overtime no matter the model. I had a 2012 8 series and that was biggest pos you could ever buy, issues from mechanical to every electrical issue you could think of. Got an Audi A8 and 0 issues for 3 years.
LOL me with my Z3
@@HashMaster1776 I have been around these cars for years and the one's that have been abused tend to repay in kind with blown diffs, roasted clutch etc etc, the ones treated nice tend to be reliable.
@@HashMaster1776 have owned 6 plus bmws driven from 100k to over 300k with zero issues on original engines and more. Same with plenty of people I know. It is more about where the person takes it and owner than the car 98% of the time.
@@wrz4581 yeah people who are biased tend to say things like that.
The plastics in cooling systems, Vanos unreliability etc etc are BMW problems but a straight six manual BMW is a joy to drive. They're great cars.
Met an owner today of the same exact m3 in the video . Color,wheels, and a manual. Owner said it was his baby and it only has 60k but has kept up with it at every moment. Made my day
This is going to be a great build series the e46 M is a gorgeous rocket ship, it’s cool that this one is going to have a new life!
In my opinion BMW's reliability issues are really overblown. Some of the M series and others are definitely unreliable, but e36-e46 inline sixes are awesome, very reliable with proper mantainence A lot of people buy the older ones and complain about prices for parts and forgot that they are paying for parts for a car that originally sold for 80k but now has lost 70k of value. They are expecting prices for an economy car.
As a 17 year old that just bought an e90 328i I hope you're right.
@@spicysnowman8886 youre better off than the 335i guys lol
@@joesephjostar8288 it's a manual, and plenty of power for me so I'm very happy with it.
@@spicysnowman8886 The N53 is bulletproof, but the HPFP is a failure point, though not a common one.
@@Krozhin I did just have to replace the radiator and it was $600, the plastic cracked. But the previous owner never had any major issues over 120k miles.
Go over the transmission, and the way it was swapped including the wiring if you can. It would really help a lot to see a swap done right!
tans is a simple fix since i assume they are getting a new clutch
always loved these E46 M3 looking forward to the series.
Heck yeah watching love that clay crayon interior smell of the older bmws
Freddy, you could not of bought a better platform I am so excited to see what you do with this thank you for the E 46 content! This is absolutely a dream car of mine ! One day when my kids grow up I hope to get one somehow .You got and excellent deal.
Excited for this build. Loved my e46
I daily my 2004 e46 M3 and its been solid for 6 years. Yes, I spend a lot on preventative maintenance, and there's the occasional big bill(rear diffs go out on these!), but it's just a killer car to own and drive!
I'm not a BMW fan at all, but this generation of M3 and the late 90s/early 2000s 7 series (like Hoovie had) are beautiful cars I would love to drive.
Agree, I'm a bit biased since I have a 98 740, and I love the hell out of it
Daily drove an 05 745li with 120k i picked up in ‘13 for 9k. Drove it for 4 years with two kids and it was amazing. Only issue i ran into was an ignition coil went out on the way home from work. Stopped at an autozone and scanned it. Grabbed a coil and plug at oreillys. 20 minutes later it was fine. Best car I’ve ever owned. But i was probably lucky Maintenence wise tho
Tavarish, for the love of god plz finish ur other cars!!
Actual dream car. The E46 M3 is one of the cars that got me into cars.
Fred I know you will make it a true gem by the time you are done. You do great work.
Thanks Freddy, us e46 owners can now enjoy a rebuild that’s close to our hearts. I know you guys will do an amazing job. 👍
I unno about that, us SC guys have been waiting over half a year for any new content smh.
3 years from now, maybe?
Thats an amazing deal for $6k. You got a running and driving E46 hardtop with a decrnt body for that money. Definitely exaggerated its condition too, car has a lot of potential.
Thank you for speaking the truth. A good paint job is better than any wrap job.
Totally agree on the point about wraps vs good paint
I have that shifter in an M3 that was manual originally (so the transmission has the proper detents). I have stock engine mounts and e21 (thicker rubber) trans mounts. It has none of the issues that you describe; I always know what gear I'm in, and it makes the 2-3 shift effortless. Looks like installer error.
So it's not a dog leg shifting pattern? That was the first thought that crossed my mind when first gear made the car go into reverse.
If you guys want to actually see a e46 M3 project get completed, Mat Armstrong has a bunch of videos of him fixing a Laguna Seca Blue. I highly doubt Tavarish is going to make more than a few videos on this.
No Freddy always finishes up his projects before he starts another. Seriously I think this will get done but only because Jack will do most of the work just like the Ferrari Jack did such a good job on and the Mercedes that needed so much body work and all Freddy really did was put a new steering wheel in and a few other pieces.
He never finished a project. He outsourced all the work.
@@Timberland1963 that's actually true, Jack is pretty competent. I just suggested the other guy because he does like 90% of the work himself, and the project is mostly complete so it's a really good watch.
I remember seeing a Laguna Seca blue convertible in auto trader yrs ago,one of the coolest looking cars ever.
Armstrong ADDED wheel spacers to his restoration, LOL! That guy is not all there IMO.
Finally Freddy…welcome to the club bro…excited about this build!! YESSSS!!!!
I was trying to work out where I’ve seen Jack before and then it came to me as he’s Red’ Sgt Joseph Hartsock from the computer game franchise brothers in arms lol The last good 3 series BMW was the E36 and an E46 is basically an E36 designed by an accountant rather than an engineer.
Make it the most wanted BMW
Can't wait for the follow up vids. I love the E46 M3's
Looks great for 6k - have to talk it down so it can look better later. Extra parts are the originals
I will always love this car specifically because it was the main car from Need For Speed Most Wanted, one of favorite racing games of all time
I've wanted a E46 since I got into cars and have had mine for w years now and I still love it. Problem with alot of them is that they get neglected and the problems are fixed for the time being not properly. Can't wait to see what you do with it
@Sly Rax I'm curious too
I bet 2
E46 M3’s are GOAT status 🤟🏻 Had mine since 2011, love it. Do a CSL plus conversion S54’s with carbon plenums sound glorious.
This is probably going to sound like an ad (which it isn’t), but I have to thank guys like Tavarish for introducing a non-car guy like me to eBay motors because without it my car would have been in the shop for weeks waiting for a backordered part to come in.
Yes, mechanically it's very messy, but the interior is still in good shape. Exterior items can all be addressed. But the car itself is great looking. This was the pinnacle of BMW design IMO.
I had an '02 M3 for a little while IMO best M3 awesome car to drive. Enjoy Tavarish! I think this is going to be a great build! Dont forget to check the lifter shims!
I had a E46 325 Touring. Loved the sound, interior quality and superb handling. Nice addition!
I just bought an E46 M3 and I have a lot to learn, haha. I also have a similar shifter from RTD. I'm not sure how I like it yet, but I'm looking into CoolerWorkz and CAE.
a bmw never disappoints hope you enjoy it
as a bmw owner, it absolutely has disappointed me a couple times, but that hasn't been enough to get rid of it! (e34 owner for 18 yrs)
My first interaction with a E46 M3 was the Swedish built "loaded", that thing was a beautiful masterpiece.
The bmw hate is hilarious lol man 1995-2004 gotta be some of the most reliable models ever made. I drove my 1998 7 series up and down the east coast for years, my dad has a 5 speed 89 5 series … driving to work, idk 🤷🏽♂️
My brother loved BMW. Fell in love when he was in Germany. Here is the one thing I can say about a BMW, I loved the driving experience. The first BMW I drove was my cousin’s car and it was AMAZING! Then my brother came down and he was driving this BMW that was literally in pieces, however I drove it and it handled just like my cousin’s new one. I mean I get the appeal. However I agree about the unreliability. I’ve heard too many stories from wannabe yuppies.
The M car isn’t as reliable as the m division, but just more expensive in general maintenance if you get a good one. The brand as a whole is not a good way to look. E30’s, e36’s, e46’s, and e92 non m m50/m52/m54 are very reliable and with proper work and maintenance more reliable then most cars My e46’s ‘05 330ci coupe zhp 6 speed 114k ‘02 330ci auto vert :( 162k
I own a 2008 328i with 120k miles and it drives and handles like new.
To be fair, I got an '00 328i manual with the BBS sport package for $2k wrecked when I turned 21 (super low speed, mostly cosmetic damage), rebuilt it myself in about a month with $2k in parts, a lot of which were upgrades, and it was reliable to drive but it randomly fried the steering wheel slip ring (no more wheel buttons) and had a saggy headliner and I learned how to replace window regulators with that car. I put about 50k on the ODO then sold it for $4500. Guy was so stoked for it too even with the issues. I showed the guy who bought it all of my work as well as receipts for everything indicating they were genuine parts, so he knew it was rebuilt despite having a clean title (airbags never deployed and both parties elected to not report the collision). He said it was the cleanest one he had seen at that price point. Perfect subframe, upgrades pre-done, and the entire cooling system was already rebuilt. I even wrote up a whole post on Bimmerforums way back documenting my progress, parts and price lists. $6k for one of these really is a steal...you can hardly get a ZHP for that price anymore. I just personally prefer working on Japanese over German. Fun fact: the MAF sensor from a Hyundai XG300 ended up being a direct fit for the 99-00 E46. So I used a genuine Hyundai part for that because it was cheaper to source and a closer dealership to bike to.
Looking forward to this series love the e46 m3
Your so wrong about BMW I have owned an E92 M3 6 years and 2 X5s over 8 years neither has ever had any issues. They are also great looking cars 😂
I’ve had 8 BMW’s .. he’s not wrong . Your just lucky. The x5 are the worst cars BMW ever made so you got very lucky 😂
Jack is the best. Make sure he's on your channel for a very long time
I recently found Hoovies Garage through a youtube algorithm. So I immediately became a fan. Then I consumed all the Car Trek series and became a fan of Ed and Tavarish. Fred has quickly become my favorite. Still love Tyler and Ed, but Tavarish is a real dude! I can't get enough!
awsome to see a e46 m3 on your channel. if you ever can get yourself a zhp/zam. even more rare than a m3 and just as fun with less issues
Update about the m3???
I love that car!
As painter I totally agree with your stance on wraps.
You’re looking good Freddie. You had mentioned a while back that you’re going to be working on your health and it’s showing. Keep it up!
Is this another one of Freddie’s unfinished projects?
Does this guy ever finish any project? Asking for me…
Can't wait to see this beast finish. Only tavarish can do this project.
Never been so excited for a video as I am for this one!!!
Where is the next episode?
I really wanna see this get turned into an M3 GTR…not because of Need For Speed nostalgia, definitely not.
yes!!! cant wait for the next in this series!!!
My friend in college had a White M3 with black interior. I guess it was the previous generation M3, early or mid 90's. It was a beautiful car, fun to drive and he didn't have any mechanical issues with it. It did cost a fortune to replace the front bumper when a raccoon ran across the road in front of him (a bit too slowly) and smashed up the bumper. Of course, it didn't do the racoon any good either....
I totally agree with Jack on the paint and wrap thing, I hate wrapping cars, it's just like budget cover up of things that are wrong with the car. And you are right about it too freddy
6k for a E46…I’d pay that all day long👌🤙
And after putting in another $15k you'll finally have a decent running M3
I like to think what he is actually doing here is what they refer to as “high level market research.” Taking a product that everyone says is great and actually, proving or disproving whether it is as great as they say or not. I feel like he's done this time and time again but for whatever reason I'm not sick of the format I still love it. Tavarish keep doing what you're doing and I'll keep watching.
Mini trucks are dope. That should be your next build!
Hey Tavarish, I can’t wait to see the progress on the the e46 m3!! Since the paint job is horrible please please repaint it OEM Laguna Seca Blue!!! because that silver needs to go, it seems to me like 80% of m3s on the the road are in that silver color, just my personal opinion.
Color is Titanium Silver and it was the base base color is my understanding. But agree I hate this color. Had a silver grey. Did some carbon fiber parts and room wrap for a sleek look.
Laguna Seca Blue would be soooo nice. I would settle for Alpine White on some CSLs tho ;)
Freddy, you need a Smart ForTwo 450 in your garage 😂
I’ve owned an E46 M3. Truly nothing like it as far as driving dynamics and linear power delivery. That said it was a maintenance nightmare for an average garage mechanic like myself. Always seemed worth the pain when you were driving it but when wrenching on it that feeling was gone. All that said I wish I had it back.
I agree, wrapping is just putting band aid over crap. That´s my first thought whenever i see a wrapped car.
Do more BMW's
I have a 2004 BMW 330Ci and similar issues, engine runs pretty good besides it eating oil and the engine mount are shot. The body however has had a harsher time in her lifetime. Still fun to drive even tho it has 150k miles.
I own a 2004 bmw e46 m3 and I’ve replaced my rob bearings and vanos. Car hasn’t had any issues other than a thermostat. these cars are reliable if you fix the major fail points right away. Don’t be afraid to buy one. They are great daily’s, and can even handle Las Vegas heat
I owned a 2004 E46 M3 (manual trans) that I absolutely loved. I bought it with 25k miles on the clock and sold it three years later with 65k because it just became too expensive to maintain. No major high dollar repairs but small issues here and there plus routine maintenance caused me to put just over $3k into it during that time.
One of the best looking cars ever produced.
no clickbait here, this is definitely the worst!
agree
yep
Good starting point. These cars look great in Laguna seca blue
The car does not seem that bad for the price. . These E46 have gone up in value. Was this the car that was on the car rack for some time ?. Real good project Tavarish.
Andrew got a nice job, Jared got the the Wrech channel. Let's what Jack gets when he graduates.
whatever happened to this car
I have a 2001 325ci convertible 137k mi in excellent condition. So reliable. Love this car!
For the love of all things holy. PLEASE make this into the one from Need for Speed Most Wanted. That M3 GTR is so iconic and it would make everyone happy.
Getting that BMW might be your gateway into overtaking Tyler Hoover as the Dumbest Automotive Channel on KZhead.
Lol
stopped watching you almost a year ago, but came back for the m3 content - @ 9:50 - have to disagree with you, the aftermarket shifters like that on this M3 actually provide the most direct feeling shifting of any shifter on any manual tranny ride. you need to try it first before you disagree. Also that particular shifter looks like it was installed incorrectly. Shouldn't be impossible to correct. Also, your gut instinct on the test drive is correct. Likely a mis installed or bad drive axle and possibly bad rear wheel axle bearings.
Makes me so sad every time I see an e46. I had bought a silver mint e46 (not an m3, I'm not Jay Leno) 330ci coupe last year with insanely low miles and every single option possible. I owned that car for 2 weeks before the garbage plastic impeller water pump went out. As I was on the shoulder of the interstate waiting on a tow truck, a random Kia SUV plows into me at 80 mph. I was still rocking the temp tag. LUCKILY, he seemed to swerve at the last second and only took the drivers side corner, but I kept visioning if I just so happened to be stepping out at that moment. Everyone stay humble and expect the worst; it may save your life.