While the E46 M3 was one of the best all-time performance cars of its generation, there are still those who would consider its 338 horses to be insufficient in today’s era.

Luckily, there are people like Tyler from Technica Motorsports who can do something about that. He even let Matt Farah drive this E46 M3 project car, powered by the S65 V8 unit from the newer E92-generation model.

It also features the E92 M3’s 6-speed manual gearbox to help control the 414+ HP now running through its veins. We do learn that they’ve managed to get a little bit more power from the 4.0-liter V8, but otherwise the engine remained stock, as did the rest of the car – mostly.

During his drive, Farah found the V8-powered E46 M3 to be very smooth and extremely fast in a straight line. He did have a slight issue with the steering, but we’ll let you find out why that was by hearing Tyler explain the problems they ran into while modding this car.

The cost of jamming an S65 V8 into an E46 M3? Around $50,000, and you have to provide the engine.

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