Not trying to be a purist or anything out here, but none of the LED options i saw for the E46 were appealing to me. The good ol' stuff seems to look best.
Would jump on a set of the 'angel wing' types (E60 style), if anyone ever comes up with one for the E46, but dont think that's possible.

 

I hear you… i think I’m just going to go fishing on eBay for a good used OEM led tail lights. People seem to use the eagle eye brand a lot but the review has not been great at all

 

All of the aftermarket ones have like a darker shade around the housing, and it really is noticeable that it is not OE. I would opt to just get the OE LED ones and be done. There are some requirements for it. I believe your lighting module needs to be a certain version for LEDs to work. Search the forum, there should be tons of threads on it.

 

Honestly, I never knew this. Until one of my friend brought it up.

 

Yup. I agree. I have an 03 M3 vert. I believe my LSZ/LCM is good since my car was manufactured on 11/2002 (fingers crossed), purchased the bulb sockets already and just need the retro fit wiring harnesses.

 

Having bought many different brands of LED bulbs and had experience with several different LED tail light assemblies, I personally prefer LED bulb replacement in factory housings. Obviously some work with on the computer is required but with after market assemblies it seems like one LED always goes bad and it instantly makes even the best looking assembly instantly tacky. Then they aren't serviceable. In the rest of my fleet I run Sylvania Zevo leds in everything. I haven't yet had one fail either but if they do they have a lifetime warranty.