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In my experience the only time you need a LOC is if you are adding a sub. Without it the radio maxes out around have volume. I usually do not add one and I have no issues. I haven ever installed that radio into a E46 so I'm not 100% sure if it would need it since I know older Pioneers needed it. You have the correct dash kit. Our Harness wit steering wheel controls is $60 and then another $20 to make it plug directly into the radio. Here's a link just in case you have problems with what you ordered.
 

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Another option is to contact the poster ([email protected]) in post number 2 above. They might be able to set you up with a package solution. One comment about receiver brands - I like the non glare screen on the Pioneer 2330 that I have. I recommend you check several units out for features (screen quality, HD radio, single vs. dual camera inputs, single vs. dual USB’s, laggyness to inputs) etc. in general, I don’t think you can go wrong with Sony, Pioneer, Alpine, JVC/KENWOOD brands.
Thanks! We also sell the parts separately since many people find us after they try other companies products.

The install looks good. You're a brave man cutting into your car like that 👍
 
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