Welcome to Bimmerfest. Awesome first post and really nice looking car too!I added a Curt 111741-59146 hitch to my 2002 330i (it's a manual with the M package). I used it and a foldable Harbor Freight utility trailer to pull a portable cement mixer and other construction tools from San Francisco to Lake Tahoe and then again to pick up a bunch of lumber (about 800lbs worth). In both cases the car pulled the trailer and load effortlessly (twisty mountain roads and on the freeway).
The hitch was $200 on ebay (with wiring for lighting) and bolts directly to sheet metal under the spare tire, but seems extremely solid
The trailer was $300 shipped at Harbor freight (the 1,200 capacity model)
For $500, the setup is pretty great value and gives the car vastly improved utility.
Towing with these cars is SOP in rest of world, so kudos for using the E46 as a tow vehicle. I've towed on that route, with the X5 though... Not sure if you're North or South Tahoe but I'm doing the SF East Bay to Reno and back trek several times a month. I always take an extra close look when I see an E46 and will look for a hitch on all the blue Sport package sedans from now on. :thumbup: