Quad headlamps are enclosed in aerodynamic covers. The optional bi-xenon lights include low and high beams; the outer lamps provide high-intensity discharge illumination on low and high beams, while the inner lamps augment the high beams with halogen lighting. Auto-leveling of the bi-xenon lamps is included.

Introduced for model year 1999, the sedan was the first of this latest generation of 3 Series cars; it shares its styling and most of its body work with the sport wagon. Subtle changes to the design of the 3 Series sedans and sport wagons for 2002 freshened their appearance with redesigned front fascias, front and rear bumpers, grilles, headlamps, tail lamps, hoods, and fenders. Similar to the theme set by the new 7 Series, the headlamps now tilt up at the trailing edges of the wraparounds rather than tilting down as they have traditionally. BMW also redesigned the shape of the cutouts below the headlamps. When equipped with the aerodynamic package, the front fascia looks like more of an air dam than before with round integrated fog lamps instead of small, thin rectangular lights. The lower grille is split all the way across. Bumpers, front and rear, have a simpler, cleaner look and redesigned taillight units offer greater illuminated area. The grilles, continuing BMW's dual-kidneys tradition, were widened. The hood's character lines sweep outward and rearward from the grilles' upper outer corners back to the body's A-pillars. Front fenders were also modified, with more prominent wheel-opening flares that interrupt the side character lines for an additional element of design interest.

Coupe and convertible models were introduced for 2000 with updated design cues. Their headlamp cluster wraparounds taper down rather than up.

M3 models are distinguished by the hunkered stance, the deep front airdam with its vast opening, aggressive fender flares, massive low-profile Michelin Pilot Sport tires, the bulging hood (necessary to accommodate the engine), dual twin exhaust tips, even the horizontal air gills just below the windshield pillar. Even in a color as basic as white, the M3 attracts a lot of attention, particularly from men who notice its special styling cues that only hint at its amazing performance potential.

Well-designed exterior door handles are easy to grab.