Among BMW aficionados, the letters ZHP remain somewhat legendary, representing what many believe could be the last affordable, analog product from Bavarian Motor Works. The ZHP options package was available on later model-year 3 Series cars from the E46 generation of the late-1990s and early-2000s. While not as powerful or aggressive as the vaunted E46 M3, an E46 ZHP will nonetheless claim a slight premium on the used market these days, as enthusiasts have come to appreciate all that the ZHP has to offer.
But these are cars that range from 15 to 20 years old these days, so how has that package managed to keep up with the times?
I recently got the chance to get behind the wheel of a four-door, six-speed stick-shift 2004 BMW 330i with just over 151,000 miles on the odometer. And it's hard to say which was more enjoyable on the test drive: the long straights where the E46's refined luxury emerged or, more importantly, the tight curves where the ZHP package's upgrades truly shine?
The ZHP Package Still Adds Value
Overall, the drive was eye-opening, clearly revealing why ZHP-equipped cars command such a presence in the BMW community. Acceleration won't ever blow anyone out of the water, but the car almost feels like it prefers to be slammed into and out of corners aggressively, allowing the E46 gen's perfect balance and the ZHP's taut suspension setup to mesh at the point where the rear tires just barely begin to break free. Punch the throttle right then and the low-end grunt of BMW's famous naturally aspirated inline-six all of a sudden feels like plenty of power.
So what is it about the ZHP package that combines to create so many smiles per gallon? And how can a car with over 151,000 miles on the clock still feel solid, not to mention relevant, all these years later?
The E46 is the last 3 Series to stick with the combination of silky-smooth straight-sixes and near 50:50 weight distribution
Driving a modern BMW provides a clue—the company began experimenting with twin-turbos (and later, twin-scroll turbos) for the E46's successor, the E92 generation, which also featured a V8 in the M3 for the first time (to many a Bimmer fan's dismay). These days, BMW has lost track of the nimble dynamics that made earlier models so successful, instead going with beastly torque-monsters under the hood and overly complex features like adaptive sway bars, adding weight at the cost of the driver's connection to the road.
That makes the E46 the last 3 Series to stick with BMW's tried-and-true combination of silky-smooth straight-sixes and near 50:50 weight distribution. Meanwhile, the interior remains a marvel. Compared to BMWs of today, which feel cramped, synthetic, overly electronic, and dark on the inside, the E46 has plenty of leg and elbow room, a low beltline allowing for plenty of visibility and an airy interior feel, plus quality materials that have withstood the test of time.
BMW Codes The Performance Package As "ZHP"
Enter BMW's official E46 Performance Package, coded as option ZHP, which was available on both coupes (330ci) and four-doors (330i) but not station wagons, and could be had with either a six-speed manual transmission or a five-speed Steptronic automatic.
Obviously, the stick-shift cars are more desirable today, since the whole point of finding a ZHP is driver engagement in a daily-driver bundle (that six-speed was a big upgrade over lower-spec 3 Series models in the lineup, which used five forward gears, and placed the ZHP one step closer to its M3 big brother).
This ZHP came equipped with carbon-fiber trim, leather seats, and a wide-rimmed, Alcantara-stitched steering wheel—all of which contribute to the feeling that this sedan is actually a sports car at heart.
Engine And Handling Enhancements
Other than options like carbon fiber or the choice of transmissions, every ZHP left the factory with tauter suspension thanks to revised geometry, a close-ratio steering rack, and a slight power bump compared to the "base" 330i. The package as a whole cost $3,900 when new, which covered suspension revisions including firmer springs, stiffer dampers, worked-over control arms, an underbody brace, and more aggressive front-wheel camber.
Under the hood, the 330i's 3.0-liter M54 inline-six also received high-performance camshafts and tuned engine management software to boost output from 225 horsepower to 235, largely thanks to a higher redline set at 6,900 RPM. But peak horsepower wasn't necessarily the only goal, and the ZHP's power bump does feel very noticeable throughout the rev range. The increased grunt resulted in BMW claiming ZHP-equipped cars would run a full half-second faster to 60 miles per hour at 5.6 seconds.
In the real world, the ZHP package's stats on paper just make driving more fun. Around town, the low-end power is sufficient to keep the engine revved low and upshift at about 2,500 RPM (though, honestly, I couldn't help but rev up to and above 4,000 just to feel BMW's double Vanos camshaft timing in action). Once the road opens up, the ZHP becomes a true sports car, with playful characteristics that beg to be pushed to their limits despite the fact that this is, after all, a four-door luxury sedan.
Sporty But With Four Doors And A Comfortable Backseat
And that's where the ZHP has added another layer of shine to its legendary status: where the E36-generation M3 could be had in both coupe and four-door form, the E46 gen kept things two-door. So anyone with a family or who just wanted to be able to seat five people relatively comfortably could choose a 330i with the ZHP package and get the best of both worlds (short of commissioning a full-on engine swap, which isn't unheard of but also isn't particularly cost-effective).
The car I got a chance to drive is owned by an enthusiast named Zach, who discovered the ZHP package after his dad bought an automatic coupe when the cars were still near-new. Zach bought this four-door almost five years ago, from its second owner, who just happened to be any buyer's dream seller. An aerospace engineer, the second owner had done most of the work on the car himself, kept records in both a spreadsheet and a three-ring binder, and was only selling it to recoup costs from his recent purchase of a brand-new, well-optioned M235i six-speed.
Zach bought the car with 128,000 miles and, to be fair, had to perform some upkeep. Big-ticket items have included a new radiator (to be expected with any BMW given the company's inability to figure out cooling systems that don't degrade quickly) and an oiling issue that required a few unsuccessful trips to the mechanic but eventually resolved itself after steady, frequent oil changes (Zach's daily three-mile round-trip commute probably didn't help).
This Car's Suspension Setup
The seller, thinking he'd never actually receive an allotted M235i with the options he wanted, had also replaced the front shocks but was holding off on the rears, so Zach went ahead and finished that job, replacing the factory shock mounts at the same time with aftermarket polyurethane units.
The result is that the rear end definitely had a bit of a firmer feel during my test drive—Zach might have a go at replacing the front control arms next to help tighten things up evenly—but even now, the sensation isn't necessarily a bad thing given the ZHP's highly aggressive front camber specs. Even with an alignment performed under five hundred miles ago, the car felt happier turning than tracking straight.
Brake feel, meanwhile, was a huge plus, which could be partially attributed to the ZHP's specific staggered wheel setup with 18-inchers and rubber measuring a healthy 255 at the rear. And the Bridgestone Potenza Sport tires Zach installed about 15,000 miles ago still look nearly new, despite having been largely used in stop and go traffic since then.
The Famous ZHP Shift Knob
If the ZHP has any flaws, it might be that the clutch action is, if anything, too smooth and could get lost among the sensory inputs during spirited driving. Another gripe would be that the famous ZHP weighted shift knob, a favorite mod even for M3 owners, helps the gearbox overcome a springy, inaccurate throw without getting too notchy—in this case, the sensation could be attributed to age and wear, but more notchiness might be achieved with a short-shift kit or a shifter bushing refresh. Those ZHP-specific wheels, meanwhile, are the heaviest of any factory wheel on any E46 BMW, so perhaps a set of lighter aftermarket units could help reduce unsprung weight and speed-bump clunkiness.
Still, from an overall perspective, Zach still thinks he got a great deal and it's hard to argue with him. The car looks great, with a timeless exterior despite a few nicks and dents. The interior still feels just about new, with little wear on the high-touch surfaces and the only flaws limited to headliner delamination on the A-pillars and a tiny bit of bolster wear on the driver's seat. And despite the car's age and mileage, the ride quality can best be described as dialed-in.
Overall Thoughts On The ZHP
Comparing the car to newer BMWs, which have become notorious for reliability and quality-control issues, buying an E46 ZHP seems like an especially solid financial decision. It sits well below the value of an E46 M3 and offers more comfort (and almost as much power) as an E36 M3, which will still run buyers about twice as much.
Even with the modest increase to 235 horsepower, no E46 ZHP will come close to dominating anyone in a newer BMW off the line. But 0-60 and quarter-mile times aren't the point here, no matter what today's mainstream automotive media might think—the point is that for well under $10,000, the E46 ZHP offers an analog driving experience that's quickly vanishing in the modern marketplace. This is a car that begs the driver to hone their own skills at every turn. And behind the wheel of a ZHP, even one with over 151,000 miles on the clock, nobody can resist doing just that.
Sources: Carbuzz, BMW Blog, and Car and Driver