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We have a 94 525i with the straight 6 which is a virtually bullet proof engine if properly maintained. I have no experience with the eight cylinder which is in the 530i of the same year, but I have heard it is also capable of extreme longevity if properly maintained. The cost of maintenance on both is not cheap and the eight his more to deal with and more complex. If the car is for your daughter (ours is used by our daughter as well), it is a safe, solid, and reliable vehicle. If you are going to pay for the repair/upkeep, locate a good independent BMW shop for servicing. As on any old car, little things break. Power seat problems are very expensive to repair and probably not worth fixing given the market value of the car. There's not much you can easily repair yourself either unless you have the time, space, and often special tools to do the job.

Personally, I have always gone with the six cylinder engine, especially after talking with my mechanic who we've dealt with for over 30 years. We've had very little problem with our 94, and none with the engine outside of wear items like water pump bearing. Other parts, after 21 years, do break down. The power head rest doesn't work and is not worth the cost to fix. We did fix some other seat adjustment that had failed--worn/broken cables--and that was not cheap. Bottom line, IMO, the 530i would be a solid safe car for your daughter but do check that all important items work and if there is a service history, all the better. Be prepared for expensive repairs, however, even at a good independent shop. These cars were not built to be disposable so keeping them running and driving well will be more expensive than your typical sedan.