Well a cold air intake pulls air from a source from outside the engine bay. It can be ducted to an inlet from the front grill or below the car or air can be routed to it from other areas. A regular intake usually just replaces the stock filter bax and pulls air from that point. There is also another type a Ram Air intake it is a cold air type, air is funneled in from outside and run through the system. a ram air forces air into the air system once you are going not at idle. there are some good systems out there BUT f you are to get a cone filter systen get one that has a boxed in set-up, or receives air from a cold air source If you suck in hot air from the engine bay you will actually lose hp...there is a factory Ram Air system for the E36 it is used on the euro spec M3.....Good luck email me if you have questions where to get these