Someone Swapped an E46 Engine Into a G82 M3 Competition

The presence of a battered Sao Paulo Yellow G82-generation BMW M3 Competition at an insurance auction isn't particularly surprising; with 503 hp and 479 lb-ft of torque from its turbocharged 3.0-liter inline-six, even BMW's xDrive all-wheel-drive system can't stop overzealous drivers from overcooking a corner. But this M3 Competition is getting a second chance at life after enduring enough vandalism to be totaled... and with, let's just sat, a more manageable level of power.

That's because someone engine swapped this special M3 with an M54 engine out of an E46-generation 3 Series. With power levels for the naturally aspirated M54 ranging from 168 to 228 horsepower, it's not immediately clear which model this M54 came out of — but no matter what, we know that this G82 M3 is significantly down on power now.

According to the auction photos, the sellers are well aware of this two-decade-old engine swap, posting a handwritten note that explains that the original engine is missing and that the M3 now boasts the wrong motor. Apparently, the catalytic converter has also flown the coop. Astute readers will see that very few hoses and electrical connections from the M54 are actually hooked up to the M3, indicating this may just be a placeholder until another S58 engine can be sourced.

With 39,445 miles on the clock, this M3 Competition appears to have lived a harder life than most, running on a salvage Georgia title after a collision and subsequent vandalism. While the auction house says the actual cash value of the bright M3 is $91,095 [LOL — Ed.], it also estimates that it will take $36,446 to properly repair the M3 to its Ultimate Driving Machine Glory.

If you're interested in picking up a steal of an M3 with a de-rated engine swap, the auction is live down in Orlando, Florida as of this story's publication. The auction house says that the airbags never went off, meaning your interior troubles should be minimal. And while the thought of an E46-swapped M3 running around the South is a comical one, we suspect this donor motor is simply a holdover plopped in for the auction photos, not meant for real-world running. But hey – you buy it, you do what you like.

You Might Also Like

• You Need a Torque Wrench in Your Toolbox

• Tested: Best Car Interior Cleaners

• The Man Who Signs Every Car