The BMW 323 sedan got complete redesigns in the 1999 model year, offering a roomier driving experience. Upgrades to coupes and convertibles came in the following model year.

The 323 retained its powerful, precision-engineered 2.5 liter engine that produced 170 horsepower. Other changes, outside of styling, were minor and included upgrades to the optional sport package.

Surprisingly, the biggest complaints around the car which were just "o.k." according to one driver and "lame" according to another. Some users reported maintenance problems after the car had been on the road for a few years, but few quibbled over the 323's handling, power and appearance.