BMW M240i vs M2 Competition: Is the Premium Worth It?

content: The Ultimate BMW Performance Dilemma

Imagine standing at a crossroads: one path leads to the celebrated BMW M2 Competition at over $60,000, the other to the M240i at roughly $10,000 less. Both promise thrilling drives, but which truly satisfies? After extensive backroad testing and ownership research, we've uncovered surprising truths that challenge conventional wisdom. The M240i's B58 engine—shared with the Toyota Supra—delivers 335 horsepower and 369 lb-ft of torque, while the M2 Competition's S55 produces 405 horsepower. Yet real-world performance gaps shrink dramatically thanks to the M240i's intelligent xDrive system and razor-sharp tuning.

Performance Showdown: Specs vs Reality

Straight-line acceleration reveals minimal differences in daily driving. The M240i's 8-speed automatic transmission executes lightning-fast shifts that rival the M2's DCT, with near-instantaneous torque delivery from its turbocharged inline-six. Where the M2 Competition pulls ahead is track-focused scenarios: its mechanical limited-slip differential enables more controlled power slides, while the higher-revving engine rewards aggressive driving. However, BMW dealers can install an M Sport differential in the M240i for under $2,000—narrowing this gap significantly.

Independent testing by Throttle House shows the M240i achieves 0-60 mph in 4.1 seconds versus the M2 Competition's 3.9 seconds. For street use, this difference becomes academic. What matters more is the B58's broad torque curve that hits peak twist at just 1,520 RPM, making it feel explosively responsive in real-world conditions.

Handling Dynamics: xDrive Surprises

Critically, the M240i's xDrive system defies expectations. Power distribution defaults to rear bias, delivering 90% to the back wheels until traction demands intervention. Through winding roads, this setup creates playful rotation that mimics rear-drive character while offering winter capability the M2 lacks. Steering feedback, though electrically assisted, transmits clear road textures through the wheel.

Chassis balance deserves particular praise. The shorter wheelbase (105.9 inches vs 106 inches in M2) creates nimble turn-in, with adaptive M suspension keeping body roll in check. Our test drives confirmed that Sport+ mode firms damping excessively for rough roads, but Comfort mode strikes an ideal balance for daily use.

Value Proposition: Beyond the Badges

Financially, the M240i presents a compelling case. Depreciation hits it harder than the M2 Competition—used M235i models (predecessor with N55 engine) now sell near $28,000 CAD. Yet feature-for-feature, the M240i includes:

• Adaptive suspension (standard)
• Heated steering wheel
• Apple CarPlay integration
• Identical interior materials to base M2

The M2 counters with exclusive styling: aggressive front kidney grilles, fender vents, and M-specific mirrors. Performance seats and blue brake calipers further distinguish it, but these aesthetic upgrades hardly justify the premium alone.

Modification Potential: Closing the Gap

For enthusiasts, the M240i responds exceptionally to upgrades. Beyond the factory differential option, aftermarket coilovers improve body control, while ECU tuning unlocks 400+ horsepower from the robust B58 block. Crucially, these modifications preserve warranty coverage when installed through BMW's dealer network.

The M2 Competition's S55 engine offers higher ceiling for track builds, but requires significant investment to reach its limits. As BMW Blog notes, "The B58 represents one of Munich's most overbuilt engines, with closed-deck construction handling 600+ horsepower reliably."

Daily Driving Realities

Inside the cabin, both models share the same functional layout with intuitive iDrive controls. The M240i's traditional analog gauges provide clearer information than BMW's newer digital clusters, while supportive sport seats handle long drives comfortably. Noise insulation is identical, allowing the M240i's sport exhaust to deliver a rich six-cylinder soundtrack nearly matching the M2's drama.

Practicality tilts toward the M240i. Its xDrive system enables year-round usability without winter tire swaps, and rear seats offer identical space to the M2. Trunk capacity (13.8 cu ft) matches the M2 precisely, swallowing weekend luggage easily.

The Verdict: Who Needs Which?

Choose the M2 Competition if:

• You frequent racetracks
• Resale value is critical
• Badge prestige matters

The M240i makes more sense if:

• Daily driving dominates use
• Budget constraints exist
• All-weather capability is needed

Ultimately, the M240i delivers 90% of the M2 Competition experience for 75% of the cost. For non-track users, its xDrive system and tunable engine create a more versatile package. As test driver Thomas from Throttle House concluded after living with both: "The M2 is the car you want, but the M240i is the car you need."

Action Plan: Your Next Steps

1. Test drive both back-to-back: Focus on low-speed steering feel and real-world acceleration.
2. Research CPO options: Certified Pre-Owned M240i models offer significant savings.
3. Evaluate climate needs: xDrive justifies itself in snowy regions.
4. Budget for differential: Factor $2,200 for the M Sport LSD if pursuing performance parity.
5. Consider wraps: Match the M2's Long Beach Blue with a $3,000 vinyl wrap.

Ready to experience the difference? Book a test drive through the BMW Ultimate Driving Experience program, which provides professional-led comparisons. For modification guidance, join the B58 Enthusiasts Facebook group—home to 50k+ members sharing proven build recipes.

Which factor—performance gaps or financial savings—would most influence your decision? Share your weighting in the comments below.