BMW Differential and Gearing Upgrades for BMW 3 Series E36 (1992-1998)

Clear BMW chassis

Please ensure your correct model is selected

Upgrading various parts of the differential can have tremendous benefits in your car's performance. It's easy to forget that the differential is a source for making your car faster and handle better so it's often overlooked. The engine is not the only place to make the car faster. Our differential options vary from gearing upgrades to limited slip conversions. You can purchase the ring & pinion gear sets on their own (professional installation required) or have us build a diff around your own specifcations. The options are almost endless! Every custom-built diff is fully rebuilt with seals and bearings. We also design and supply bushing options to reduce driveline wind-up, finned differential covers for better cooling, and more!

Ratio Changes - Changing the differential gearing is one of the best and most-effective upgrades you can make on any BMW (old or new). By using a shorter (numerically higher) final drive ratio you are increasing your RPM relative to road speed - this puts you in a more powerful RPM range than before! Since you're in a 'meatier' part of the power band you're now putting down more power/torque to the ground. If you can trade outright top speed for faster acceleration at daily speeds then this is the perfect upgrade for you.

Limited Slip Upgrades - Sadly, many BMWs today are not equipped with a limited slip (posi-traction) differential. BMW has tried to compensate by using traction control that cuts power at the engine or applies the brakes to retard wheel spin (or a combination of both). But nothing beats the function and feel of a a true LSD which may be why BMW continues to use them in M cars. Our LSD upgrades can be done a number of different ways - a factory-type limited slip unit with either 2 or 3 clutch packs, helical type, OS Giken unit, or something truly custom. We can also vary ramp angles and setup to change the limited-slip behavior under acceleration, deceleration, and cornering. Need a custom diff? Call or e-mail to have a quote.

Sub-Categories

Sort By:

E36 Reinforced Billet Differential Cover Kit - 188mm
For upgraded cars with 188mm differentials.
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Turner Motorsport - Corporate Logo
T#:30497159
Part#: 049424LA
Ships on Sep 9, 2026
Sale - Save 3% $ 1,144.99

This product was last offered at the strikethrough price on
06-14-2026

Starting at $ 1,110.64 USD
Free Shipping
Sale - Save 3%
$ 1,144.99

This product was last offered at the strikethrough price on
06-14-2026

Starting at $ 1,110.64 USD
Free Shipping

Single piece 6061 construction, optimized cooling, provisions for temp sensor, and external cooler with removable air duct.

Built to last, made from a single piece of 6061 billet aluminum with a rugged and good-looking hard-coat anodizing our diff cover can handle anything you throw at it. Not only is it an absolute masterpiece to look at but the billet diff cover checks all the boxes for features needed. Reinforced mounting ears for strength and stability, never again will you break an ear off your diff cover like the factory units are known to do. Each ear is not only unified with the one-piece billet cover but also feature added material for the highest durability possible. This diff cover is cool, literally, the entire construction was designed with optimized cooling in mind. External fins are strategically placed on the rear face, bottom, and between the mounting ears of the cover, serving as effective heat sinks for optimal heat dissipation. This ensures stable temperatures, promoting longevity for both the fluid and your differential. Additionally, the internal design ensures continuous oiling and lubrication to the ring gear, maintaining its stability and preventing fatigue by controlling heat more effectively. An internal baffle at the cover's corner helps maintain proper pressure and prevents cavitation.

All of the OEM features were retained along with the upgrades. The mounting surface was designed to be compatible with both the OEM gasket or RTV of your choosing, some people don't trust the gaskets and we get it. You can transfer your speed sensor directly to your upgraded billet cover and it even features a provision for the sensor wire mounting. Factory bushing geometry allows you to use any E36 diff busing including rubber, poly, and even solid mounts. The drain and fill plugs on the diff cover are upgraded to -6AN using the provided high-pressure fittings with replaceable o-rings. The drain and fill plugs can now also be used for expanding to an external oil cooler allowing you to further expand the fluid capacity for optimized cooling and service intervals. To keep an eye on things from the driver seat is 1/8 NPT provision for temp sensors, this product from Turner has you covered at every turn.

Why the upgrade?

If you're new to differential covers used in earlier generations like the E30, you'll find significant improvements in the OEM E36 cover. Unlike the E30's single mount design, the E36 features a dual mount design, which was introduced to address common issues such as broken mounts due to worn-out bushings and aggressive driving. This upgrade significantly enhanced durability and reliability.

While the factory E36 differential cover was a significant improvement with its dual mounts compared to the previous generation, there are still some shortcomings that the original cover doesn't address. Most factory differential covers, including those on the E36, are cast from aluminum. However, due to the porous nature of cast aluminum, the mounting ears on these covers cannot withstand the intense shocks typical in motorsport or in vehicles with significantly increased power.

Upgrading to our Reinforced Billet Differential cover gives you the strength you need to push your car to its limits without worrying about snapping a diff mount from clutch kicking or other shocks to the drivetrain. In addition to its enhanced strength, this differential cover includes numerous other upgrades and conveniences. These include improved cooling and lubrication for the ring gear, upgraded fill and drain plugs, and the option to expand an external oil cooler for extreme motorsport usage. Designed to complement both upgraded daily drivers and extensively modified track cars, it also boasts a visually appealing design.

Key Benefits:

Reinforced mounting ears for strength and stability - never again will you break an ear off during an aggressive drive or track event
External fins on the back side, bottom, and mounting ears on the casing for maximum cooling and consistent fluid temps
Removeable air duct to direct air across the cooling fins for even more temperature control
Optimized internal design to keep fluid consistently on the ring gear
Integrated breather to prevent cavitation by venting the appropriate amount of pressure being built up in the diff housing
-6AN ports to incorporate the use of a differential cooler - this increases capacity and lowers temps allowing for extended fluid change intervals
1/8 NPT fitting for the use of a temp sensor to monitor fluid temperature
Design:

Single piece 6061 Billet aluminum construction
T6 Black hard coat anodizing for superior corrosion resistance and aesthetics
Compatible with most differential coolers(-6AN) and temp sensors(1/8 NPT)
Designed to accommodate oversized rear sway bars
Retains OEM mounting features including the use of the OEM gasket
Factory geometry bushing size for use with OEM and aftermarket poly bushings
Removeable air duct for easy access to sensors and drain/fill plug
Retains OEM speed sensor and wire mount location
Product development:

Our Reinforced Billet Diff Cover was designed, engineered, tested, and quality inspected by our Research and Development team at Turner. Nothing but the highest level of precision and quality through leading-edge product development technology including FARO laser scanning for reverse engineering and quality inspection, SolidWorks 3D CAD modeling, rapid prototyping utilizing our in-house 3D printer, and rigorous long-term product testing.

Show More Show Less
Performance Polyurethane Differential Bushing Set - E36
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
ECS - Corporate Logo
T#:341288
Part#: 002447ECS01KT
In Stock
Sale - Save 25% $ 203.99

This product was last offered at the strikethrough price on
06-13-2026

$ 152.99 USD
Free Shipping
Sale - Save 25%
$ 203.99

This product was last offered at the strikethrough price on
06-13-2026

$ 152.99 USD
Free Shipping

Urethane mounts keep the differential from twisting under load. As torque is put through the driveline it causes anything to twist and move. The differential is mounted to the subframe and the twisting and deflection can be transferred to the rest of the chassis. With a stiffer mount the differential will not deflect as much. This improves seat-of-the-pants feeling to the driver, giving more feedback for smoother power delivery. In theory, there's also more torque being sent to the drive wheels since it's not being used up shifting the diff weight around.

These are tough 88A durometer urethane bushings with a anodized almunum center sleeve, engineered by ECS. This is a set of E36 diff bushings - 1 for the front and 2 for the rear cover. New high-grade hardware is included (the front bolt has a tendency to snap from all that torque twisting!).

Show More Show Less
Powerflex Performance Polyurethane Differential Bushings - E36 ...
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Powerflex - Corporate Logo
T#:378980
Part#: PFR5-326X2
Ships in 1 Business Day
$ 139.99 USD
Free Shipping
$ 139.99 USD
Free Shipping

Differential bushings are responsible for keeping the differential in solid alignment while dampening drivetrain vibration. While OE rubber bushings are fine when they are new from the factory, aged and worn out rubber bushings create a multitude of issues that can range from annoying to dangerous. As a factory bushing ages, it begins to harden and become brittle. When this happens the bushing will actually shrink and allow for movement at the differential mounting point. At this point, the differential is free to shift under load causing a noticeable clunking noise under acceleration and deceleration and massively increasing the stress on the driveshaft and axles. Manual transmissions suffer the worst from this as it can make shifting difficult since the differential will shift when the clutch is engaged and disengaged.

By replacing these bushings with full polyurethane, the movement is eliminated since the mounting point is supported by a much stiffer material that will not harden or shrink over time. This means less stress on the driveshaft and axles and greater longevity of supporting components. 

Engineered to perform, Powerflex performance polyurethane differential bushings offer a supreme level of control, while still providing enough comfort for the street, with advanced polyurethane that reduces NVH that often accompanies lesser bushings. Expect improved acceleration response, more direct shifting feel and overall improved drivetrain composure with Powerflex performance polyurethane bushings.

Poweflex is a leading manufacturer of aftermarket suspension bushings. Using state of the art design and manufacturing, all replacement bushings are engineered to out-perform and out-last the ones that came in the car. Each line of bushings is meticulously tested and then re-tested to ensure perfect fitment and enduring quality through the life of the vehicle. A full lifetime warranty backs every one of their products and demonstrates the level of confidence and commitment Powerflex has to their customers. 

Show More Show Less

Active Autowerke Differential Support Bracket (DSB) - E36
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Active Autowerke - Corporate Logo
T#:397248
Part#: 13-004
Ships in 3 Business Days
5% off MSRP $ 429.00

MSRP stands for Manufacturer's Suggested Retail Price. This is the suggested retail price provided by the manufacturer, supplier or seller.

$ 408.00 USD
Free Shipping
5% off MSRP
$ 429.00

MSRP stands for Manufacturer's Suggested Retail Price. This is the suggested retail price provided by the manufacturer, supplier or seller.

$ 408.00 USD
Free Shipping

The main mounting bolt for the differential in the E36 is susceptible to shearing off during extreme driving conditions. This can cause internal damage to your diff, leaving you stranded at the track or on the side of the road. Active Autowerke's differential support bracket eliminates this issue forever in under an hour installation.

 

Previously used Active Autowerke Part Number AA-DSB-E36

This product fits the following BMWs:
1992-1999 E36 323i 325i 328i M3

Show More Show Less

Genuine BMW Rear Differential Bushing - E36 318ti, Z3 1.9 2.8 2.5i ...
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Genuine BMW - Corporate Logo
T#:178422
Part#: 33171090950
Ships in 1-2 days
1% off MSRP $ 71.99

MSRP stands for Manufacturer's Suggested Retail Price. This is the suggested retail price provided by the manufacturer, supplier or seller.

$ 70.99 USD
Free Shipping
1% off MSRP
$ 71.99

MSRP stands for Manufacturer's Suggested Retail Price. This is the suggested retail price provided by the manufacturer, supplier or seller.

$ 70.99 USD
Free Shipping
Genuine BMW RUBBER MOUNTING
Polyurethane Differential Bushings - E36
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Revshift - Corporate Logo
T#:1105907
Part#: PDB-E3695A
Ships in 10 Business Days
$ 109.99 USD
Free Shipping
$ 109.99 USD
Free Shipping
Utilizing high-precision machining technologies and their very own Polyurethane Manufacturing Department, every Revshift product is designed, manufactured, and tested in-house at their Detroit, Michigan facility.
Show More Show Less

Genuine BMW Rear Pinion Bearing
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Genuine BMW - Corporate Logo
T#:214508
Part#: 33131204568
Ships in 1-2 days
3% off MSRP $ 108.99

MSRP stands for Manufacturer's Suggested Retail Price. This is the suggested retail price provided by the manufacturer, supplier or seller.

$ 105.99 USD
Free Shipping
3% off MSRP
$ 108.99

MSRP stands for Manufacturer's Suggested Retail Price. This is the suggested retail price provided by the manufacturer, supplier or seller.

$ 105.99 USD
Free Shipping


Genuine BMW Tapered Roller Bearing -

This item fits the following BMW Chassis:
E36

>
Differential Flange Cover - E23, E24, E28, E30, E32, E34, E36, Z3 ...
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Genuine BMW - Corporate Logo
T#:59180
Part#: 33111208047
Ships in 7 Business Days
3% off MSRP $ 165.99

MSRP stands for Manufacturer's Suggested Retail Price. This is the suggested retail price provided by the manufacturer, supplier or seller.

$ 160.99 USD
Free Shipping
3% off MSRP
$ 165.99

MSRP stands for Manufacturer's Suggested Retail Price. This is the suggested retail price provided by the manufacturer, supplier or seller.

$ 160.99 USD
Free Shipping


Genuine BMW Transmission Cover
This item fits the following BMW Chassis:
E30 M3,E36 M3,E30,E34,E36


BMW E36 Performance Polyurethane Differential Bushing Set - Rear Posi...
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
ECS - Corporate Logo
T#:384597
Part#: 002447ECS01KT1
In Stock
Sale - Save 25% $ 148.99

This product was last offered at the strikethrough price on
06-13-2026

$ 111.74 USD
Free Shipping
Sale - Save 25%
$ 148.99

This product was last offered at the strikethrough price on
06-13-2026

$ 111.74 USD
Free Shipping
Your E36's rear differential is indirectly connected to your right foot through the engine and driveline, and connected to the seat of your pants through the chassis. Soft factory rubber differential bushings absorb vibrations between chassis and differential, providing comfort and softness in both of these connections. ECS Tuning's In-House Engineered Performance Polyurethane Differential Bushing eliminate deflection permitted by factory bushings, improving the connection you feel to your differential. Removal of this slop allows for crisper power transfer from differential to wheels, which means better throttle control while carving a canyon road, drag racing, sliding the rear end out, or just driving to work. This is achieved without the harshness or vibration associated with delrin or solid differential mounts. Featuring a tough 88A durometer polyurethane and Black anodized 6061-T6 aluminum Sleeve, our Performance Polyurethane Differential Bushings are more resistant to chemicals, ozone degradation, road salt, and general wear and tear than factory rubber bushings, resulting in a longer service life.
Show More Show Less

BMW E30 E36 Z3 Helical Limited Slip Differential
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Team MFactory - Corporate Logo
T#:379405
Part#: MF-TRS-05E36
Ships in 6 Business Days
$ 999.99 USD
Free Shipping
$ 999.99 USD
Free Shipping
The best way to gain a prominent advantage over the competition is to do it with the MFactory Helical Limited Slip Differential. The smooth consistent distribution of power to the wheels with the MFactory Helical LSD puts the power-to-the-ground and maximises your vehicle's traction. A must for any car be it stree, strip, or track. What exactly does an LSD do you ask? well without an LSD your car is actually 1 wheel drive, in that it can't supply torque to both wheels at the same time and will only supply torque to the wheel with less grip, which is what the shortfall is to an open differential (what most vehicles have). An LSD only lets the wheels spin at different speeds by a limited amount (typically this is a percentage difference) which is when the differential locks and both wheels get power. This is not how locked differentials work such as in off road trucks which supply equal torque and rotational speed to both rear wheels at the same time, which can cause issues with handling. Features: Industry first, 30-day Feel the Torque™ money back guarantee, and a Limited-Lifetime Warranty! Forged and Cryo-tempered Advanced Shot Peening technology for increased surface hardness Designed to withstand the extreme shock loads of competition-level drag racing Maintenance-free gears eliminate the need for special fluid or rebuilds associate with typical plate LSDs. Lock-free operation ensures no adverse steering response. **As a break-in procedure, we recommend changing the fluid after the first 3-400 miles of use.**
Show More Show Less
Wavetrac BMW Limited Slip Differential
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Wavetrac - Corporate Logo
T#:383303
Part#: 30309150WKWVT
Ships in 2 Business Days
$ 1,245.99 USD
Free Shipping
$ 1,245.99 USD
Free Shipping
Wavetrac® Torque Biasing Differential - Innovative: Patented Wavetrac® design automatically improves grip in low traction conditions. This feature is truly innovative and unlike and other torque biasing differential design. - Superior Materials: High strength 9310 steel gears are used in case-hardened billet or forged steel bodies. ARP® fasteners are used throughout the differential. - Maintenance Free: As supplied new, the Wavetrac® differential will perform a lifetime of service without maintenance or rebuilds. - Limited LIFETME Warranty: All Wavetrac® differntials include a transferable, limited lifetime warranty. *Additional technical information on the Wavetrac® Differential can be found at the following link: http://www.wavetrac.net/technical.htm
Show More Show Less
14mm Front Differential Bushing Upgrade
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
You will need to drill the diff casing & tap to M14x1.5
Condor Speed Shop - Corporate Logo
T#:597385
Part#: 14MME36DIFFBU
Ships in 2 Business Days
$ 130.00 USD
Free Shipping
$ 130.00 USD
Free Shipping
These E36 & E36 M3 Differential Bushings from Condor Speed Shop are designed for the street and the track. You won't have to worry about any more rubbery flex in your diff mounts during hard acceleration. They use UHMW in all their suspension bushings because they are stiff, and have almost zero deflection while also absorbing vibration. It will outlast other types of rubber and polyurethane bushings.
Show More Show Less


Genuine BMW Differential Shim Set
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Genuine BMW - Corporate Logo
T#:59558
Part#: 33139065735
Ships in 1-2 days
2% off MSRP $ 231.99

MSRP stands for Manufacturer's Suggested Retail Price. This is the suggested retail price provided by the manufacturer, supplier or seller.

$ 226.99 USD
Free Shipping
2% off MSRP
$ 231.99

MSRP stands for Manufacturer's Suggested Retail Price. This is the suggested retail price provided by the manufacturer, supplier or seller.

$ 226.99 USD
Free Shipping


Genuine BMW Spacer Rings Set - 1,72Mm-1,96Mm
This item fits the following BMW Chassis:
E30 M3,E36 M3,E30,E34,E36

Genuine BMW Vibration Absorber - 33316770851 - E36,E38,E39
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Genuine BMW - Corporate Logo
T#:20837
Part#: 33316770851
Special Order: No Guaranteed ETA
2% off MSRP $ 260.99

MSRP stands for Manufacturer's Suggested Retail Price. This is the suggested retail price provided by the manufacturer, supplier or seller.

$ 255.99 USD
Free Shipping
2% off MSRP
$ 260.99

MSRP stands for Manufacturer's Suggested Retail Price. This is the suggested retail price provided by the manufacturer, supplier or seller.

$ 255.99 USD
Free Shipping

Absorbs vibration in the drive-train to help dampen noise that would be transferred to the cabin of the vehicle.

Genuine BMW Vibration Absorber -
This item fits the following BMW Chassis:
E36,E38,E39
 

 

Show More Show Less
OEM Lemforder Vibration Absorber - 33316770851 - E36,E38,E39 ...
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
2X Entries For Our G87 M2 Sweepstakes! We Price Match - Give Us A Call or Chat!
Lemforder - Corporate Logo
T#:399252
Part#: 33316770851
Special Order: No Guaranteed ETA
$ 107.99 USD
Free Shipping
$ 107.99 USD
Free Shipping

Absorbs vibration in the drive-train to help dampen noise that would be transferred to the cabin of the vehicle.

This item fits the following BMW Chassis:
E36,E38,E39

Show More Show Less