I'll add this:
It is not advisable to mix different types of coolant, as many are not compatible with one another. To eliminate guesswork, and possible coolant related issues, it's advisable to only use BMW coolant in the car.
Many people use a surfactant or wetting agent in their cooling systems such as Redline Water wetter or Royal Purple's Purple Ice to aid in cooling system efficiency. These products are guranteed to be compatible with all types of coolant and will not cause damage to your cooling system.
What brands or types to use:
See above. BMW coolant is recommend for all applications. It should be mixed with distilled water (not tap water) in roughly a 50/50 ratio.
How often should you change it:
The BMW-recommended service interval for coolant replacement is every 20,000 miles. It is advisable that you change your coolant at least as often as this to protect against internal corrosion.
How much do you need and how hard is it to change:
The cooling system capacity for E36 M3's is 11.4 quarts (2.85 gal), 50/50 water/coolant. This equates to roughly 1.4 gallons of each. You'll need to buy 2 gallons of BMW coolant and 2 gallons of distilled water to fill the entire system.
The cooling system is drained through a radiator drain plug, and a plug in the engine block. I can tell you from experience, the coolant flows out of the block with a fair amount of fury behind it. Plan on a decent sized bucket, or a decent sized mess. Bleeding the system is imperative when done refilling it. This is done by running the car with the cooling system topped off, the radiator expansion cap off, and the bleeder screw open to expel any air in the system.
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