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The BMW 3-series is the automotive equivalent of Sir Steve Redgrave, having been at the top of its field for the best part of 20 years. But buying a used 3-series is not the “no brainer” that it may at first appear, as the bewildering array of engines and trims can vastly change the car’s character.

The latest incarnation of the 3-series, known as the E46, was introduced to Britain in September 1998 and proved to be the most refined of all. It retained its traditional rear-wheel drive at a time when most rivals were taking the front-drive route.

BMW claims that rear-wheel drive gives better handling, and the 3-series is undeniably an impressive drive. The chassis inspires real confidence, feels perfectly balanced and even gets better as you push it harder. All models come with BMW’s Cornering Brake Control, an extension of the antilock braking system that helps keep the car on track when brakes are applied suddenly in a corner. There’s also ASC+T (Automatic Stability Control plus Traction), a system that helps prevent loss of grip.

You may be surprised to find that the 3-series provides a less than perfect driving position, with offset pedals and poor foot space; the absence of a clutch pedal consequently makes automatics popular. Rear accommodation is also unimpressive (three adults are a squeeze), while boot space is intruded upon by the suspension.

In performance terms the four-cylinder petrol models have little to recommend them. They are a favourite of junior executives who have forsaken better engines in other cars to acquire the kudos of a BMW badge. Many have been pushed too hard to compensate for lacking power, so it’s wise to hunt down a privately owned example.

Stepping up to a six-cylinder model adds refinement and a more pleasing sound, but the 2.2 litre engine affords little advantage over the four-cylinder units and is less eager to rev.

The 170bhp 323i or 192bhp 325i are closer to fulfilling BMW’s claim to creating the “ultimate driving machine”, and the 231bhp 330i motor is an absolute peach.

But the real revelations are the diesel engines. The 2 litre four-cylinder diesel is as fun to drive as the six-cylinder petrol thanks to a large helping of torque and high refinement. And the range-topping 3 litre diesel, the 330d, is nothing short of miraculous. Powering the car to 62mph in less than 8sec it offers the kind of performance that many petrol cars beg, but with genuine 40mpg fuel economy.

Quiet three-box styling gives the 3-series a chameleon quality. With non-metallic paint and steel wheels it’s as exciting as a grey day in Margate, but with a good colour and nice alloys it’s transformed. In this respect it’s one of the most colour and specification-sensitive used cars around, so be prepared to pay extra for the right look. Sport models with larger alloys and lowered suspension are favoured over SE models, but give a harder ride.

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