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BMW’s 3 Series has long been regarded as the benchmark compact sport coupe, sedan and convertible. Taking this already athletic vehicle to new heights is the M version, known as the BMW M3. In the BMW world, the letter M stands for the company’s Motorsports performance division. These fun-loving engineers tweak a given BMW model’s engine for more output, upgrade the suspension for even more agile handling and add sporty exterior and interior design elements.

Throughout its two decades on the U.S. market, the BMW M3 has been a favorite of enthusiasts looking for sports car performance and handling out of a true four-place car. Although content to smoothly burble around while doing daily driver duty, the M3 transforms into a back-road burner when conditions allow and gives its pilot the opportunity to attack corners with precision and rocket out of them with gusto.

It’s true that other high-end German marques also offer highly tuned compact coupes and sedans in the U.S. to battle the Bimmer. And though they are formidable foes, the BMW M3 continues to be a favorite among enthusiasts, including our staffers, who want the ultimate in car-to-driver communication.

The current BMW M3 debuted in 2001 and is available in coupe and convertible body styles. There is a single trim level for both and it comes loaded with luxury and performance features, such as automatic climate control, multi-adjustable sport seats, a 333-horse inline-six engine and 18-inch wheels. A six-speed manual transmission is standard, while a six-speed sequential manual gearbox (SMG) is offered as an option. The latter allows manual-style shifting (including rev-matching on downshifts) via paddle shifters next to the steering wheel.

Among the various option packages, the most interesting is the Competition Package (coupe only), which provides some of the performance hardware from the European-market M3 CSL, such as 19-inch forged wheels, stiffer shocks and springs, a quicker steering ratio, upgraded brakes and a less intrusive Track mode for the stability control system. Distinguishing the M3 from the standard 3 Series are a number of obvious yet not ostentatious styling tweaks, such as a larger front airdam, a “power dome” hood, chrome-trimmed side vents and discrete rear deck lid spoiler.

Every BMW M3 road test sings the car’s praises in terms of its incredibly balanced handling, prodigious grip and telepathic communication between car and driver. The downsides of this no-compromises performance car are few: a stiff ride, tinny exhaust note and more wind and road noise in the convertible than one might expect. But for die-hard sports-car enthusiasts who need four seats, it doesn’t get much better than a BMW M3.

The second-generation M3 was introduced in 1995 and was a tidy package, with only its subtle rocker panel extensions, tri-color “M” badges and different wheels to separate it from the common 3 Series. Along with a buttery-smooth 240-hp inline six, this generation of the M3 wooed enthusiasts with its ripping performance, finely balanced chassis and everyday livability. For enthusiasts on a budget, these are perhaps the best deal for a used M3, combining a wide choice of body styles (coupe, convertible and sedan), along with plenty of entertaining performance and an affordable price tag.

The first-generation BMW M3 was the most radical. Running from 1988 to 1991, this M3 was essentially a hard-edged, racetrack-ready version of a 3 Series coupe. These M3s featured aggressively blistered fenders fore and aft, slightly thicker C-pillars that allowed a more aggressively canted rear window, and a higher trunk lid fitted with a large spoiler. Under the extroverted bodywork was not an inline six, but a highly-tuned DOHC, 16-valve inline four that cranked out, for its time, a very impressive 195 hp without the help of a turbocharger or supercharger. An unmolested first-generation M3 is a rare find these days and tends to require more maintenance and care than the second-generation car because of its more specialized four-cylinder engine.