If your M46 came from a non-turbo 1984 car, that car had a 3.31 axle. Turbos had 3.73 with the M46.
A 3MPH error is a little more than one would expect (at what speed, tho'?), but the real test for proper speedo gearing is the odometer. What does it read compared to a known accurate distance? If it is accurate, then the speedo head magnet/spring combo needs to be calibrated.
I sent my 1983 Speedometer head to Palo Alto Speedometer who did a nice job. It came back dead accurate and looking like new. (www.paspeedo.com)
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Bob: Son's XC70, my 83 240, 89 745 (V8) and S90. Also '77 MGB and some old motorcycles
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