BMW 540iA Recommendations...

[th3_blur]

I am currently looking to buy a BMW 540i (E34) and I came across this one (http://www.autotrader.com/fyc/vdp.jsp?ct=p&car_id=242294641&dealer_id=62380061&car_year=1995&model=540I&num_records=25&systime=&make2=&start_year=1981&keywordsfyc=&keywordsfyc=&keywordsrep=&keywordsrep=&engine=&certified=&body_code=0&fuel=&awsp=false&search_type=both&distance=25&marketZipError=false&search_lang=en&make=BMW&keywords_display=&color=&page_location=findacar%3A%3Aispsearchform&min_price=&drive=&default_sort=&max_mileage=&style_flag=1&sort_type=priceDESC&address=06614&advanced=&end_year=1996&doors=&transmission=&max_price=&cardist=13) which is local enough to really consider. There are approximately 98,000 miles on the car. On the outside, the car is beautiful. The paint is in excellent condition, there are no noticeable scratches or dents, and the interior looks like it was never sat in. According to the owner, it has only been used as a backup car mainly for going on longer trips while he owned it and is selling it because he doesn't use it enough. He bought it from a dealer a number of years ago. He seems like a decent man and is willing to come to an agreeable price based on the work the car needs.

The owner agreed to take it to a shop in the area (Europa Motors, Hamden, CT) which specializes in BMWs to have it looked at. Upon completion of the inspection today, this is what they told me. (I have little mechanical knowledge of cars, so bear with my noobiness please).

-There are gaskets on each side of the engine. Both are leaking oil. He also mentioned a problem with the caps related to the oil leak.

-The power steering hose is leaking which results in loss of pressure.

-The brakes are on the way out and will need to be replaced soon (less urgent he said).

-The left rear differential is not in great condition and should be replaced.

I would greatly appreciate your thoughts on the feedback given by the mechanic as well as any other thoughts on the car. Should I still buy it? He told me that to make the necessary repairs, it would cost at least $500 (excluding the brakes I think). Also, the Blue Book value of the car ranges from $8,275 (excellent) to $6,885 (fair). What do you think it is worth? Keep in mind that I live in CT.

Thanks!

[e34.535i.sport]

Hey good choice of car first of all! I'm always on the look out for a 540i upgrade... Awesome car.

I assume you've check if the engine block is Nikasil or Alusil?

Points two and three are trivial really and can be changed easily by yourself if you feel so inclined. Not too much expense there really...

Point one sounds like your talking about the valve cover gaskets... Not a major problem and again, you could do this yourself.

Doing all those things yourself will save you $$$ in the long run, and well worth the experience. It's daunting at first but you'll learn quickly and if your anything like me, you'll enjoy it!

Not sure what you mean by left-rear differential - if a new diff is in order this could cost you a few $?

I will reserve comment on the price because there's such a massive difference between prices in the US and the UK...

[th3_blur]

I'm pretty sure it has the Nikasil engine block. When I looked at it, I asked about it, but as he was unsure of how to know and I am also unsure of how to know which one it has. He said the engine had not been replaced so I guess that means it is Nikasil right?

[healtoeit]

-The left rear differential is not in great condition and should be replaced.

What is that? Do they mean the half shaft?

[e34.535i.sport]

I'm pretty sure it has the Nikasil engine block. When I looked at it, I asked about it, but as he was unsure of how to know and I am also unsure of how to know which one it has. He said the engine had not been replaced so I guess that means it is Nikasil right?

You don't want a Nikasil block really, as they have been known to have issues. However some people are still driving them today without a problem. Depends on the fuel its been given or something. If it hasn't failed by 100k miles then it probably won't, but it's not worth the risk if you ask me. Others may feel differently. Apparently the dealer offers a replacement engine with extended warranty up to 100k miles because of the issue - so its still in warranty I suppose LOL!

If you want to find out what block lining it has then look for a number stamped on the block itself (bottom part of the engine) - and check out this link for more info: http://en.wikipedia.org/wiki/BMW_M60. You will be interested in the m60b40 part.

Take a look, see what you think and ask the guy if you can have a look for the number. If the price is right it could turn out to be a good motor. You would probably find it hard to find an e34 with absolutely nothing wrong with it, and the problems outlined on this car don't seem to be big 'expensive' ones. You done right in getting it checked out, good peace of mind.

[h2oyo]

I am currently looking to buy a BMW 540i (E34) and I came across this one (http://www.autotrader.com/fyc/vdp.jsp?ct=p&car_id=242294641&dealer_id=62380061&car_year=1995&model=540I&num_records=25&systime=&make2=&start_year=1981&keywordsfyc=&keywordsfyc=&keywordsrep=&keywordsrep=&engine=&certified=&body_code=0&fuel=&awsp=false&search_type=both&distance=25&marketZipError=false&search_lang=en&make=BMW&keywords_display=&color=&page_location=findacar%3A%3Aispsearchform&min_price=&drive=&default_sort=&max_mileage=&style_flag=1&sort_type=priceDESC&address=06614&advanced=&end_year=1996&doors=&transmission=&max_price=&cardist=13) which is local enough to really consider. There are approximately 98,000 miles on the car. On the outside, the car is beautiful. The paint is in excellent condition, there are no noticeable scratches or dents, and the interior looks like it was never sat in. According to the owner, it has only been used as a backup car mainly for going on longer trips while he owned it and is selling it because he doesn't use it enough. He bought it from a dealer a number of years ago. He seems like a decent man and is willing to come to an agreeable price based on the work the car needs.

The owner agreed to take it to a shop in the area (Europa Motors, Hamden, CT) which specializes in BMWs to have it looked at. Upon completion of the inspection today, this is what they told me. (I have little mechanical knowledge of cars, so bear with my noobiness please).

-There are gaskets on each side of the engine. Both are leaking oil. He also mentioned a problem with the caps related to the oil leak.

-The power steering hose is leaking which results in loss of pressure.

-The brakes are on the way out and will need to be replaced soon (less urgent he said).

-The left rear differential is not in great condition and should be replaced.

I would greatly appreciate your thoughts on the feedback given by the mechanic as well as any other thoughts on the car. Should I still buy it? He told me that to make the necessary repairs, it would cost at least $500 (excluding the brakes I think). Also, the Blue Book value of the car ranges from $8,275 (excellent) to $6,885 (fair). What do you think it is worth? Keep in mind that I live in CT.

Thanks!

Hello,
If I where you I would have the repair place do a leak down check on each cylinder. If the leak down test comes back good I dont think you will have anything to really worry about. I have a 1995 540i. I just did the auto to manual swap and as I typed this I received my EAT chip. They are wonderful cars and so much to drive. It does seem like OMG when you open that bonnet and think about working on it but its not really as bad as it looks. I'm not really sure about the price. Mine has 180K miles on it and I've put about 3K of that on. I paid 3900 for my car. I did this knowing I would have to change the transmission as it was showing signs of wearing. I really dont have a clue what the car would sell for back east as i'm in Phoenix AZ. The one really nice thing about cars out here is if the car has always been here you will not find any rust and most of the bolts and parts under the car are pretty clean. I'm not sure about the diff being bad and the cost to replace it. I know there are a few really good wreaking yards out here and if you join your local club many people that can help you find parts much cheaper. I love my car and would trade for anything, with that said I wouldn't mind putting another BMW in the drive lol.
Johan

[BMWDriver]

I wonder about the price; sounds like it's really in good shape nevertheless. I'm used to seeing e34 go about 5000$ or less. But given the condition of the car, perhaps it's worth it. It's a 13 year old car.

[th3_blur]

Where do you live? I've never seen any really decent looking E34s go for less than $5000. That also might be because I immediately filter out cars that aren't looking good at a glance.

[Ross]

You need the opinion of someone who is familiar with the breed and examined THIS car. All of our speculation here is based on your description and the sellers "disclosures".
Get it inspected, heed the advice. Expect to spend a few thou to get a neglected car back in shape.