I am currently looking to buy a BMW 540i (E34) and I came across
this one 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!