BMW Differential and Gearing Upgrades for BMW 3 Series E46 (1999-2005)

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:

Turner Titanium Magnetic Differential Drain Plug - M22x1.5
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Turner Motorsport - Corporate Logo
T#:593924
Part#: 027030TMS01
In Stock
Sale - Save 25% $ 89.99

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

$ 67.49 USD
Free Shipping on orders $49 and up
Sale - Save 25%
$ 89.99

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

$ 67.49 USD
Free Shipping on orders $49 and up
When both extreme-duty protection and saving every gram matters: the Turner Magnetic Differential Drain Plug.
Rear Differential Mounts - Turner Solid Aluminum - E46 M3
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Turner Motorsport - Corporate Logo
T#:337
Part#: TDR4680035
Ships on Aug 31, 2026
Sale - Save 25% $ 232.99

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

$ 174.74 USD
Free Shipping
Sale - Save 25%
$ 232.99

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

$ 174.74 USD
Free Shipping
Made in the USA For our Grand-Am Cup E46 M3s we wanted a fully solid differential mount setup. The advantages of a fully-solid aluminum set is that they last forever, quickens response in the suspension, and frees up horsepower to the wheels. These fully solid aluminum diff mounts are CNC machined and lightened for a direct replacement of the original rubber pieces.

By substituting aluminum for rubber we can take out all of the deflection and 'wind up' inherent to the original rubber pieces. The high deflection rate of the stock rubber means the suspension reacts slower as the bushing is compressed. The power used to compress that bushing is instead passed straight to the axles and wheels. And since there is no time lost to deflection, response is greatly improved. These diff mounts are only recommended for racecars since the aluminum transfers more noise and vibration.

This is a 3-piece set with a single front bushing and two rear bushings to press into the cover. They mount with the stock BMW hardware.

This item fits the following BMWs:
2001-2006 E46 BMW M3
Show More Show Less
E46 M3 Turner Motorsport Solid Aluminum Differential Race Mounts - Pr...
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Turner Motorsport - Corporate Logo
T#:555025
Part#: TDR4680035-01
Ships on Sep 4, 2026
Sale - Save 28% $ 597.46

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

$ 432.64 USD
Free Shipping
Sale - Save 28%
$ 597.46

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

$ 432.64 USD
Free Shipping
For our Grand-Am Cup E46 M3s we wanted a fully solid differential mount setup. The advantages of a fully-solid aluminum set is that they last forever, quickens response in the suspension, and frees up horsepower to the wheels. These fully solid aluminum diff mounts are CNC machined and lightened for a direct replacement of the original rubber pieces.

By substituting aluminum for rubber we can take out all of the deflection and 'wind up' inherent to the original rubber pieces. The high deflection rate of the stock rubber means the suspension reacts slower as the bushing is compressed. The power used to compress that bushing is instead passed straight to the axles and wheels. And since there is no time lost to deflection, response is greatly improved. These diff mounts are only recommended for racecars since the aluminum transfers more noise and vibration.

This is a 3-piece set with a single front bushing to be pressed in and two rear bushings pre-pressed into the cover. They mount with the stock BMW hardware.

This item fits the following BMWs:
2001-2006  E46 BMW  M3
Show More Show Less

Rear Differential Mounts - OEM/Meyle HD Rubber - E46, X3, Z4 ...
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Packaged by Turner - Corporate Logo
T#:339943
Part#: E46-MY-DIFF
Ships in 1 Business Day
$ 88.99

This product was last offered at the strikethrough price on
02-26-2026

Starting at $ 55.99 USD
Free Shipping on orders $49 and up
Starting at $ 55.99 USD
Free Shipping on orders $49 and up
These rubber bushings from Meyle are a direct replacement for the stock differential bushings in the E46 3-series, E83 X3 SAV, and Z4 Roadster. If your original bushings are worn (likely around 100,000 miles) these are a great replacement upgrade. The front bushings are the stock OEM type rubber bushings. The rear bushing is a Meyle HD upgrade over stock - about 15% stiffer than the originals. This means the bushing will not flex and twist as much. This puts more power to the wheels since power is no longer used up for 'torquing' the bushing. These are not race bushings; the rubber material is perfectly suitable for street use.

The non-M E46/E83/Z4 models use three differential mounts - two front bushings in the subframe and one rear mount in the diff cover. This set of bushings covers all three. You can opt to include new mounting hardware in the Options list below.

This item fits the following BMWs:
1999-2005 E46 BMW 323i 323ci 325i 325ci 325xi 328i 328ci 330i 330ci 330xi
2004-2010 E83 BMW X3 2.5i X3 3.0i X3 3.0si
2003-2008 Z4 BMW Z4 2.5i Z4 3.0i Z4 3.0si Roadster
Show More Show Less

Premium Differential Service Kit - E46 M3, E9X M3, E82 1 M Coupe ...
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Includes BMW SAF-XJ limited slip differential fluid with FM booster
Packaged by Turner - Corporate Logo
T#:598688
Part#: E46M3DIFSERTMSKT
In Stock
Sale - Save 8% $ 301.99

This product was last offered at the strikethrough price on
05-03-2026

$ 277.83 USD
Free Shipping
Sale - Save 8%
$ 301.99

This product was last offered at the strikethrough price on
05-03-2026

$ 277.83 USD
Free Shipping
Servicing your differential is an important job and should only be completed using high quality components! To ensure our customers are getting exactly what they need, we have put together this limited-slip differential service kit that includes all new fluid from BMW, a new BMW drain plug, and one of our new Titanium Magnetic Differential Drain Plugs!
Show More Show Less
Rear Differential Service Kit for various BMW Models
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Packaged by Turner - Corporate Logo
T#:42133544
Part#: 835225790TKT
In Stock
$ 59.72 USD
Free Shipping on orders $49 and up
The kit includes 2 Quarts of Red line 75w90 - 57904 and brand new Rein rear diff oil drain plug M22x1.5

E46 Finned Differential Cover Upgrade Kit
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Packaged by Turner - Corporate Logo
T#:401688
Part#: 33117512980KT
Ships in 2 Business Days
$ 366.99 USD
Free Shipping
$ 366.99 USD
Free Shipping

The perfect upgrade for any E46, this finned differential cover increases cooling to the rear differential to prevent over heating and possible damage. This is a complete kit including fluid and drain plugs.

Includes the following

  • Aluminum finned differential cover
  • Drain & fill plug with sealing o-ring
  • 2 Quarts of Redline 75w90
Show More Show Less
Performance Differential Cover install kit
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Packaged by Turner - Corporate Logo
T#:556968
Part#: 33112282482KT3
Ships on Sep 4, 2026
Sale - Save 7% $ 676.14

This product was last offered at the strikethrough price on
05-03-2026

$ 627.61 USD
Free Shipping
Sale - Save 7%
$ 676.14

This product was last offered at the strikethrough price on
05-03-2026

$ 627.61 USD
Free Shipping

This kit includes Turner Motorsport solid aluminum differential race mounts pre installed in the differential cover for a quick install. These mounts where developed by Turner Motorsport for their Grand-Am Cup E46 M3 race cars, the advantages of solid aluminum mounts is increased suspension & drivetrain response, less drivetrain loss resulting in more wheel horsepower, and longevity - they effectively last forever. These CNC-machined mounts are a direct replacement for the stock rubber pieces, and have been lightened to remove excess weight. 

 

Show More Show Less

Front Differential Input Seal Kit - E46, E53, E60, E61, F30
affirm Starting At 0% APR - Subject To Eligibility. See Lending Terms
Packaged by Turner - Corporate Logo
T#:41289766
Part#: 31521428678TKT
Back Ordered
$ 52.99

This product was last offered at the strikethrough price on
07-06-2026

$ 50.99 USD
Free Shipping on orders $49 and up
$ 50.99 USD
Free Shipping on orders $49 and up
This kit comes with the seal and both dust covers needed to re-seal your vehicles input shaft on the front differential.