What do you know about E34 BMWs?

[Sarc]

My wife and I have been entertaining the idea of adding a sedan for the spring-fall months. Although we've been primarily considered various new japanese/german models in the 15-17K price range, there is an allure of purchasing an older E39 or E46 BMW. Since it appears that both these used bimmers still command a premium, even with higher miles, we've also looked at a few E34s.
We never really considered an E34 before since most of the versions we see around here are a little long in the teeth, with a bazillion miles on them and in overall poor condition. That is until recently we've come across what appears to be an exceptional 540i 6 speed. To describe it a bit:

It's a 3 owner 1995 with 92K with the only modification being updated BBS 17s. Asking price is $9,500. All service up to date and other than an occasional rear window misalignment, the car is described as garge kept, babied, etc. The car looks exceptional in the pictures.

The reason I ask is my knowledge extends primarily to E30s and E28s, so I admit I'm not up on the E34, which I'm aware is more advanced than the E28. When considering an E34, we were initially looking for a 535 to have reliable 3.5 six, but there appears to be a bulk of 540s on the market. The only thing I'm somewhat aware of is the Nikasil/Alusil issue. Was this a problem on all 540s (M60)? Could any of you shed some more light on the E34 540? Any pelican-like websites with a wealth of knowledge? If I go through with it, I will be sure to get a PPI

I imagine it's a bit more complex of a vehicle and not as trouble free as my E30 daily driver, but it seems like a lot of car for the money, especially in the condition this one appears to be.

Thanks in advance for the .02.

[onewhippedpuppy]

I previously owned an E34 540/6, and it was an exceptional car. Excellent build quality, absolutely night and day compared to my E36 (crap). One of the last overbuilt BMWs. Great to drive, great power, great handling. Can you tell I loved it?

That's a good price, if it is as nice as described. A friend of mine just sold a nearly perfect E34 540/6 for a bit over 10k, I think it had about 110k on it, and the newer Alusil motor. Here's a good run-down on the Nikasil issue:

http://www.koalamotorsport.com/article-m60v8.asp

The entire problem was excessive sulfur in SOME US fuels eating the Nikasil liners in the M60. This problem affects ALL M60s, the newer Alusil blocks weren't introduced until 1997. If the car still has a Nikasil block, and passes leak-down, it will be fine. Newer fuel standards mandate lower sulfur, so it's a non-issue today. In 1995, sulfur levels varied from fuel to fuel and state to state, so many cars were not affected. My 540 had 135k on the original Nikasil, and it ran like new. Many M60s with rough idles were mis-diagnosed as Nikasil problems when they really were suffering from intake leaks, so the problem seemed worse than it really was.

Bimmer.info is E34 heaven, there are some real tech gurus on there. Bimmerforums has some good information, but you have to wade through the 16 yr old BS. Big issues are suspension bushings wearing out (shimmy at 55 MPH), requiring a total rebuild ($500-$1000 parts), intake gaskets and PCV plate leaking and causing a rough idle ($100 DIY), seat cable leading to uneven power seat adjustment (free), and misc interior issues. Overall they are great, rare cars, if you find a good one you won't be sorry.

[Sarc]

[QUOTE Overall they are great, rare cars, if you find a good one you won't be sorry.[/QUOTE]

So it sounds like you liked your old 540 . Thanks, Matt, for the advice and links. I've been researching the Nikasil/Alusil debate quite a bit, and I've come across similar points to the one you bring up about it. I admit it still concerns me, but we'll see what the PPI does for that.
The seller has also mentioned that in addition to a new clutch, the oil pump has also been replaced and the bolts secure with loctite (per his mechanics recom.). I've found some information on this as well and it seems like a worthy procedure, yes?

I'm glad to hear your experience was a positive one, and I plan to live on the E34 info site for the next few days.

Thanks again for the advice!

[onewhippedpuppy]

Yeah, the oil pump bolts are another worthy repair. There were multiple people on the BMW forums that found oil pump bolts in their oil pan. The fact that he went to the extra trouble to fix that potential problem says a lot about the owner, as that is money he did not HAVE to spend. I'd take that as a very good sign.

Also bear in mind, the 540/6 is a fairly rare car. It's estimated that they only brought about 3,000 to the USA. Not saying that it will ever be a collector's item, but it probably won't depreciate much either. Among BMW enthusiasts, they're a pretty special car.

One final note, if you buy the car, it requires a cat-back exhaust. I had a B&B, and it sounded incredible.

[onewhippedpuppy]

Another good E34 site:

http://www.bmw4life.com/

[Sarc]

Originally Posted by onewhippedpuppy

One final note, if you buy the car, it requires a cat-back exhaust. I had a B&B, and it sounded incredible.

I'll have to remember that!

[rammstein]

Growing up, my friend's dad had that exact car. I think the style is timeless. Assuming good PPI, I'd go for it.

[deathpunk dan]

E34s are the best 5 series ever built and the last ones not to be designed with CAD. I am a big fan of the 535i 5 spd. Chip and 3.64 ltd slip diff wake it up nicely, plenty of toque...not the greatest fuel economy though.

The M20 525i is a bit breathless due to the peaky sohc m20 motor, but the vanos M50 engine for 93-94 fixes that, as does a chipped 91-92 m50 non vanos.

I don't know much about the big 8 cylinder...was always scared off by the nikasil drama. I do know this: BMW intentionally underrated the 540i's bhp rating to protect the M5. A friend of mine had the next generation 540 (same engine), and put down 260 at the wheels with only a k&n filter....for a car that's rated 282 at the flywheel...

[Dixie]

Ahh.. The joys of self-delaminating door panels and shrinking console and dash vinyl...

Aside form the interior, I really liked my humble '94 525i. At 168,000 miles, I sold it to a co-worker. At 188,000 it's still going strong.

[TerryBPP]

For reliability you can't go wrong with the m30 3.5 that came in the 90 & 91 models. 300k miles is a drop in the bucket.

They also love turbo charging!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!

[gprsh924]

Rob my dad's 93 525 has the same problem with the doors. They are getting really bad at this point, he has already stopped driving it and given it to me to have while I am away at college. In fact I think we are getting rid of ti next summer just because its start to look terrible. However, the interior looks just about brand new. It is damn near perfect after 14 years and 118,000 miles.

[onewhippedpuppy]

There are door panel issues, though not as bad as the E36. Seems like many people have good luck repairing the E34 ones. Also the occasional headliner that is coming unglued. Bolster wear on the driver's side outside upper seat bolster is also common on the sport seats. I miss mine, and would love to have another.

Sarc, that looks like a stunning example. Go for it, you won't regret it! If it's an original Cali car, you have far less Nikasil worries. CA's smog nazis mandated low sulfur fuel before the rest of the nation, so very few CA cars had any problems.

[onewhippedpuppy]

[the]

$9500 seems high for a 13 year old E34. That's several generations old now. I'd imagine you could get a V8 E39 with similar, or less, miles in that price range.

[onewhippedpuppy]

Originally Posted by the

$9500 seems high for a 13 year old E34. That's several generations old now. I'd imagine you could get a V8 E39 with similar, or less, miles in that price range.

For an E34 540/6?! If you can find them, you're doing well to get one under $10k. A friend of mine just sold an excellent condition one for $10.5k. Mine sold for $8500, and was not nearly as nice. For the condition, I'd say that is an excellent deal. Even a good condition 535/5 will pretty easily sell for $6k.

I think some people would really prefer an E34 to an E39. Last of the "real", and overbuild BMWs. Plus, it would be a real challenge to find a good condition E39 540/6 for $10k.

[the]

Here's a couple I found in a quick search of AutoTrader, as examples. These are all E39 540i's with 6 speed manuals, and similar mileage. This is literally from a 3 minute search, I'm sure you'd find much better deals with some real searching.

The one you are looking at is priced too high.

http://www.autotrader.com/fyc/vdp.jsp?car_id=225820325&dealer_id=60566911&car_year=1999&num_records=25&model=540I&make2=&start_year=1981&engine=&keywordsrep=&keywordsfyc=&certified=&fuel=&body_code=0&search_type=both&distance=0&marketZipError=false&search_lang=en&first_record=26&make=BMW&color=&page_location=findacar%3A%3Aispsearchform&min_price=&drive=&default_sort=priceDESC&max_mileage=&style_flag=1&sort_type=priceDESC&address=92614&advanced=y&end_year=2008&pager.offset=25&transmission=Manual&doors=&max_price=12000&cardist=580

http://www.autotrader.com/fyc/vdp.jsp?car_id=221352663&dealer_id=47139190&car_year=1997&model=540I&num_records=25&make2=&start_year=1981&keywordsfyc=&keywordsrep=&engine=&certified=&body_code=0&fuel=&search_type=both&distance=0&marketZipError=false&search_lang=en&first_record=1&make=BMW&color=&page_location=findacar%3A%3Aispsearchform&min_price=&drive=&default_sort=priceDESC&max_mileage=&style_flag=1&sort_type=priceDESC&address=92614&advanced=y&end_year=2008&pager.offset=0&doors=&transmission=Manual&max_price=12000&cardist=2454

http://www.autotrader.com/fyc/vdp.jsp?car_id=230642531&dealer_id=61152955&car_year=1997&model=540I&num_records=25&make2=&start_year=1981&keywordsfyc=&keywordsrep=&engine=&certified=&body_code=0&fuel=&search_type=both&distance=0&marketZipError=false&search_lang=en&first_record=1&make=BMW&color=&page_location=findacar%3A%3Aispsearchform&min_price=&drive=&default_sort=priceDESC&max_mileage=&style_flag=1&sort_type=priceDESC&address=92614&advanced=y&end_year=2008&pager.offset=0&doors=&transmission=Manual&max_price=12000&cardist=847

[alf]

I love the classic looks or the E34s. What does the M version of those cost these days?

[TerryBPP]

FYI, the 540 6spd is going form $10k-$15k.

[onewhippedpuppy]

Originally Posted by the

Here's a couple I found in a quick search of AutoTrader, as examples. These are all E39 540i's with 6 speed manuals, and similar mileage. This is literally from a 3 minute search, I'm sure you'd find much better deals with some real searching.

The one you are looking at is priced too high.

http://www.autotrader.com/fyc/vdp.jsp?car_id=225820325&dealer_id=60566911&car_year=1999&num_records=25&model=540I&make2=&start_year=1981&engine=&keywordsrep=&keywordsfyc=&certified=&fuel=&body_code=0&search_type=both&distance=0&marketZipError=false&search_lang=en&first_record=26&make=BMW&color=&page_location=findacar%3A%3Aispsearchform&min_price=&drive=&default_sort=priceDESC&max_mileage=&style_flag=1&sort_type=priceDESC&address=92614&advanced=y&end_year=2008&pager.offset=25&transmission=Manual&doors=&max_price=12000&cardist=580

http://www.autotrader.com/fyc/vdp.jsp?car_id=221352663&dealer_id=47139190&car_year=1997&model=540I&num_records=25&make2=&start_year=1981&keywordsfyc=&keywordsrep=&engine=&certified=&body_code=0&fuel=&search_type=both&distance=0&marketZipError=false&search_lang=en&first_record=1&make=BMW&color=&page_location=findacar%3A%3Aispsearchform&min_price=&drive=&default_sort=priceDESC&max_mileage=&style_flag=1&sort_type=priceDESC&address=92614&advanced=y&end_year=2008&pager.offset=0&doors=&transmission=Manual&max_price=12000&cardist=2454

http://www.autotrader.com/fyc/vdp.jsp?car_id=230642531&dealer_id=61152955&car_year=1997&model=540I&num_records=25&make2=&start_year=1981&keywordsfyc=&keywordsrep=&engine=&certified=&body_code=0&fuel=&search_type=both&distance=0&marketZipError=false&search_lang=en&first_record=1&make=BMW&color=&page_location=findacar%3A%3Aispsearchform&min_price=&drive=&default_sort=priceDESC&max_mileage=&style_flag=1&sort_type=priceDESC&address=92614&advanced=y&end_year=2008&pager.offset=0&doors=&transmission=Manual&max_price=12000&cardist=847

Fair enough, though I seriously doubt those are mint condition examples. The better question, find some excellent condition E34 540/6 for under $10k. You're assuming that the E39 is preferred because it is newer, but many people prefer the E34.

[SoCal911T]

Originally Posted by alf

I love the classic looks or the E34s. What does the M version of those cost these days?

$10-$20K depending on mileage and condition.