Tap a category to read its complaints. One report may name several components.
When problems were reported
Mileage at the reported incident
Limited mileage data: 13 of 19 reports include usable mileage. There isn’t enough coverage to show a useful chart.
NHTSA’s mileage field refers to the reported incident, not necessarily the filing date. This shows report counts, not the likelihood of a failure.
What to inspect
Issues worth paying extra attention to based on owner reports.
Structure. Review the 7 owner reports in this category and discuss these concerns during a pre-purchase inspection. Read reports →
Air Bags. Review the 3 owner reports in this category and discuss these concerns during a pre-purchase inspection. Read reports →
Power Train. Review the 2 owner reports in this category and discuss these concerns during a pre-purchase inspection. Read reports →
NHTSA owner reports · September 18, 2026 snapshot.
1 crash reports0 fire reports1 injury reports
What owners actually said
19 reports
120,000 miles · Jun 17, 2017
Suspension
A LOUD CLUNKING SOUND COMING FROM REAR END WAS NOTICED. UPON INSPECTION, BY BMW DEALERSHIP IT WAS DETERMINED THE REAR SUBFRAME HOLDING REAR DIFFERENTIAL HAS SEPARATED FROM THE BODY OF THE VEHICLE (SPOT WELD FAILURE). I WAS TOLD IT IS EXTREMELY DANGEROUS TO DRIVE AND TO FIX IMMEDIATELY. UPON FURTHER RESEARCH, THIS APPEARS TO BE A…
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A LOUD CLUNKING SOUND COMING FROM REAR END WAS NOTICED. UPON INSPECTION, BY BMW DEALERSHIP IT WAS DETERMINED THE REAR SUBFRAME HOLDING REAR DIFFERENTIAL HAS SEPARATED FROM THE BODY OF THE VEHICLE (SPOT WELD FAILURE). I WAS TOLD IT IS EXTREMELY DANGEROUS TO DRIVE AND TO FIX IMMEDIATELY. UPON FURTHER RESEARCH, THIS APPEARS TO BE A VERY COMMON PROBLEM WITH THESE VEHICLES. HIGHER DISPLACEMENT MODELS ARE A HIGHER OCCURRENCE DUE TO CREATING MORE TORQUE ON THE REAR DIFFERENTIAL BRACKET. MINE IS THE M VERSION WHICH IS ALMOST A GUARANTEED FAILURE.
NHTSA ODI #10995656
Mileage unknown · Feb 18, 2017
Structure
THE BATTERY COMPARTMENT FILLS WITH WATER WHEN TO RAINS AND DOES NOT EMPTY. THIS PROBLEM ALSO CAUSES RUST AND MOISTURE IN THE TRUNK.
NHTSA ODI #10955460
86,902 miles · Oct 16, 2011
Power Train
AT 86K MILES ON MY 1998 BMW Z3, THE THIN SHEET METAL BRACKET HOLDING THE REAR DIFFERENTIAL UP IN PLACE WELDED TO THE CHASSIS SPLIT IN HALF CAUSING THE REAR END TO HANG. THIS IS THE SECOND TIME IT HAS HAPPENED, ALSO AT 93,500 MILES, JUST 8 MONTHS LATER. THE CLUTCH IS STILL ORIGINAL AND THE CAR HAS NEVER BEEN ABUSED, OR RACED. I A…
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AT 86K MILES ON MY 1998 BMW Z3, THE THIN SHEET METAL BRACKET HOLDING THE REAR DIFFERENTIAL UP IN PLACE WELDED TO THE CHASSIS SPLIT IN HALF CAUSING THE REAR END TO HANG. THIS IS THE SECOND TIME IT HAS HAPPENED, ALSO AT 93,500 MILES, JUST 8 MONTHS LATER. THE CLUTCH IS STILL ORIGINAL AND THE CAR HAS NEVER BEEN ABUSED, OR RACED. I ALWAYS BABY THE CAR BECAUSE GAS IS SO EXPENSIVE, AND THIS SEEMS TO BE A PROBLEM WITH ALOT OF OTHER Z3'S THAT I HAVE SEEN ONLINE. THIS IS CLEARLY A MANUFACTURING FLAW. BMW CLAIMS THE CAR MUST HAVE HAD SOME REAR END IMPACT, EVEN THOUGH THIS IS CLEARLY NOT THE CASE. I WOULD LIKE TO SEE THEM REPLACE THIS PART WITH THICKER, OR STRONGER METAL AS IT CAN BE A VERY SERIOUS PROBLEM IF THE DIFFERENTIAL FALLS OUT AT HIGH SPEEDS. *TR
NHTSA ODI #10430357
50,000 miles · Apr 25, 2011
Structure
TL* THE CONTACT OWNS A 1998 BMW Z3M ROADSTER. THE CONTACT WAS TRAVELING 25 MPH WHEN THE REAR FRAME OF THE VEHICLE FRACTURED COMPLETELY. THE CONTACT TOWED THE VEHICLE TO THE DEALER WHERE THEY ADVISED THAT THE FRAME METAL WAS EXTREMELY WEAK AND CAUSED THE FRAME TO DROP AND THE REAR AXLE TO FRACTURE FROM THE VEHICLE. THE CONTACT WA…
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TL* THE CONTACT OWNS A 1998 BMW Z3M ROADSTER. THE CONTACT WAS TRAVELING 25 MPH WHEN THE REAR FRAME OF THE VEHICLE FRACTURED COMPLETELY. THE CONTACT TOWED THE VEHICLE TO THE DEALER WHERE THEY ADVISED THAT THE FRAME METAL WAS EXTREMELY WEAK AND CAUSED THE FRAME TO DROP AND THE REAR AXLE TO FRACTURE FROM THE VEHICLE. THE CONTACT WAS CONCERNED BECAUSE HE COULD HAVE BEEN INVOLVED IN A CRASH IF HE WERE TRAVELING FASTER IN THE VEHICLE. THE VEHICLE WAS NOT REPAIRED. THE CURRENT AND FAILURE MILEAGE WAS 50,000.
NHTSA ODI #10397393
90,000 miles · Dec 24, 2010
Structure
1998 Z3 SUBFRAME FAILURE. I'M WORRIED MY DIFFERENTIAL OR REAR END WILL FAIL DURING DRIVING AND BMW REFUSES TO FIX IT. THIS IS A SAFETY CONCERN FOR EVERYONE ON THE ROAD. BMW HAS INSPECTED MY CAR, ACKNOWLEDGED THE PROBLEM, AND BLAMED THE FAILURE ON THE MODIFICATIONS I MADE TO THE CAR, HOWEVER, THE PROBLEM IS OCCURRING IN A VERY HI…
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1998 Z3 SUBFRAME FAILURE. I'M WORRIED MY DIFFERENTIAL OR REAR END WILL FAIL DURING DRIVING AND BMW REFUSES TO FIX IT. THIS IS A SAFETY CONCERN FOR EVERYONE ON THE ROAD. BMW HAS INSPECTED MY CAR, ACKNOWLEDGED THE PROBLEM, AND BLAMED THE FAILURE ON THE MODIFICATIONS I MADE TO THE CAR, HOWEVER, THE PROBLEM IS OCCURRING IN A VERY HIGH NUMBER OF UN-MODIFIED Z3 VEHICLES AS WELL. THERE IS ALSO A CLASS ACTION LAWSUIT FOR THE SAME EXACT PROBLEM ON E46 MODELS (Z3 IS NOT AN E46) AND BMW IS FIXING THE E46 BUT NOT THE Z3. THIS IS A VERY DANGEROUS SITUATION AND SOMEONE IS GOING TO BE KILLED EVENTUALLY B/C OF THIS ISSUE. *TR
NHTSA ODI #10372319
75,000 miles · Oct 13, 2010
StructureSuspension
NORMAL DRIVING RESULTED IN FRAME FAILURE AT THE DIFFERENTIAL MOUNTING POINT. THE ENTIRE DIFFERENTIAL MOUNT BROKE LOOSE FROM THE FRAME AND THE CROSS FRAME IS BROKEN IN TWO PLACES.. THE VEHICLE ALSO HAS TRUNK FLOOR PAN SPOT WELDS BREAKING LOOSE. THE PROBLEMS RESULT IN A REAR AXLE ASSEMBLY THAT IS LOOSE AND STEERS THE CAR ERRATICAL…
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NORMAL DRIVING RESULTED IN FRAME FAILURE AT THE DIFFERENTIAL MOUNTING POINT. THE ENTIRE DIFFERENTIAL MOUNT BROKE LOOSE FROM THE FRAME AND THE CROSS FRAME IS BROKEN IN TWO PLACES.. THE VEHICLE ALSO HAS TRUNK FLOOR PAN SPOT WELDS BREAKING LOOSE. THE PROBLEMS RESULT IN A REAR AXLE ASSEMBLY THAT IS LOOSE AND STEERS THE CAR ERRATICALLY. THE CAR IS UNSAFE TO DRIVE AT THIS TIME DUE TO ERRATIC HANDLING. *TR
NHTSA ODI #10360392
90,000 miles · Jul 1, 2010
Power Train
Z3 SUBFRAME PROBLEM. POSSIBLE DETACHMENT OF DIFFERENTIAL FROM CAR. *TR
NHTSA ODI #10341018
15,725 miles · Jun 13, 2010
Air Bags
THE AIRBAG FAULT LIGHT CAME ON IN OUR 1998 BMW Z3 (WITH LESS THAN 16,000 MILES ON THE ODOMETER), INDICATING THE AIRBAG (OR AIRBAGS) AND SEAT BELT TENSIONERS WERE NO LONGER FUNCTIONING. THE DEALER SERVICE REPRESENTATIVE SAID THIS WAS "A COMMON PROBLEM" WITH THIS MODEL AND TOLD US EXACTLY WHAT MOST LIKELY CAUSE OF THE PROBLEM PRI…
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THE AIRBAG FAULT LIGHT CAME ON IN OUR 1998 BMW Z3 (WITH LESS THAN 16,000 MILES ON THE ODOMETER), INDICATING THE AIRBAG (OR AIRBAGS) AND SEAT BELT TENSIONERS WERE NO LONGER FUNCTIONING. THE DEALER SERVICE REPRESENTATIVE SAID THIS WAS "A COMMON PROBLEM" WITH THIS MODEL AND TOLD US EXACTLY WHAT MOST LIKELY CAUSE OF THE PROBLEM PRIOR TO ANY DIAGNOSTICS'THAT THERE WAS A FAULT IN THE SEATBELT LATCH AND WIRING THAT CAUSED 'HIGH RESISTANCE'. THE COST OF REPAIRS WAS $825. A GOOGLE SEARCH SHOWS THIS SAME PROBLEM IS ESSENTIALLY UBIQUITOUS. I SEARCHED FOR 'BMW Z3 AIRBAG LIGHT ON', AND I GOT NEARLY 40,000 HITS. LOOKING RANDOMLY AT SOME OF THESE HITS, I FIND EACH CONTAINS MULTIPLE ACTUAL INSTANCES OF THIS PROBLEM OCCURRING. FOR EXAMPLE, THE FIRST RESULT RETURNED (HTTP://WWW.AUTOMOTIVEFORUMS.COM/T145936-Z3_AIRBAG_SENSORS.HTML) INDICATED AT LEAST 6 VEHICLES WITH THIS EXACT SAME PROBLEM. THUS, I WOULD ESTIMATE FROM THE GOOGLE SEARCH THAT THIS PROBLEM HAS AFFECTED 100,000+ VEHICLES JUST COUNTING THOSE POSTED ON THE INTERNET'PLUS ALL OF THOSE THAT ARE NOT POSTED ON THE INTERNET. THE BMW Z3 WAS A LOW VOLUME VEHICLE, SO IT WOULD APPEAR THIS SIGNIFICANT SAFETY DEFECT AFFECTS A VERY LARGE PERCENTAGE OF THESE VEHICLES. ASIDE FROM THE FINANCIAL BURDEN OF OWNERS REPAIRING THIS VERY DANGEROUS DEFECT, I SUSPECT MANY OWNERS SIMPLY CHOOSE NOT TO HAVE THE POTENTIALLY DEADLY SAFETY DEFECT REPAIRED DUE TO THE COST OF THE REPAIRS. BMW SHOULD BE REQUIRED TO CORRECT THEIR DESIGN DEFECT AND REIMBURSE OWNERS WHO HAVE INCURRED PERHAPS $100,000,000 IN REPAIRS FOR THIS SEVERE AND DEADLY DEFECT. *TR
NHTSA ODI #10336091
Mileage unknown · May 17, 2007
Structure
I HAVE HAD MANY PROBLEMS WITH A KNOCKING SOUND ON THE REAR OF THE CAR, A BMW Z3 , AND I HAVE NOW FOUND THAT IT WAS A COMMON PROBLEM WITH THESE VEHICLES, THE REAR SUBFRAME WAS DAMAGED. BMW ADVISED THAT THERE WAS A DEFECT WITH SOME UNITS WHEN PRODUCED, BUT THEY WILL NOT REPLACE THIS FOR ME ON WARRANTY, ITS APPAULING. *AK
NHTSA ODI #10191028
83,000 miles · Jul 28, 2006
Structure
THE SUBFRAME IS TEARING APART FROM THE FRAME ITSELF IN THE TRUNK. SPOT WELDS HAVE FAILED AND SEPARATION IS OBVIOUS. *JB
NHTSA ODI #10163832
Official recalls
0
No recalls in this snapshot.
Model-level recall history does not show whether a particular VIN is affected or has received a repair. Check a VIN with NHTSA ↗
NHTSA investigations
0
No exact-year investigations in this snapshot.
1998 BMW Z3 Roadster Problems, Complaints & Recalls | Skip That Year