Looking at 1989 525i M20 - Advice Needed

[BlueMonday]

Hi all,

I'm a brand new member, but if I buy the 525i I'm about to view, I'll be back often.

The car is a 1989 525i manual, with the M20 engine. Mileage has 100k, full service history, one owner, black on black. New timing belt and water pump at 75k. Garaged, 4 new tyres, original spare used once.

Located in MD, private seller wants $5k, while the KBB value is listed as $3,800. I might be able to negotiate to $4,500, but it depends on the results of the test drive and pre-purchase inspection that I would have done if the car looks and drives as well as the seller claims.

I had been researching E30s, so don't have much knowledge of the E34s. With a baby on the way, the extra room in the 5er is a big plus.

I'd appreciate as much advice on buying, running, and maintaining an early E34 as you can all provide.

Is the M20 engine strong and bullet proof? Can I expect a 200k+ life?

Does the car handle well? What kinds of issues should I be on the look out for, especially if there's anything the inspection might not pick up on.

What kinds of maintenance issues can I expect?

The car would be a daily driver, although perhaps not every day at first.

Performance is less important than reliability, but I would look at adding a chip and exhaust in the future.

Would I be better spending a little more on a slightly younger E34 with the M50 24v?

If you need more info, please let me know. Hoping for as much info as you can all provide.

Many thanks,

Neil.

[632 Regal]

full maint history is worth at least a grand in my oppinion. If it passes inspection with nothing more than minor issues it may be worth the money.
Maintenence is paramount on these cars, if it moves of flexes you will be replacing it, along with flushin fluids: brake/power steering/trans/axle/antifreeze etc.
If you want to know more on what to expect check out Brunos site.
Good luck!

[Alan_525i]

How is it cosmetically and mechanically? At 100K miles lots of stuff starts to go in the suspension. If it is in good shape, 4500 is a fair price. Manual or automatic?

[632 Regal]

wasnt going to mention it but it got to me this time...lol

[Alan_525i]

wasnt going to mention it but it got to me this time...lol

Thank you!!!

[Garlic Breath]

KBB value is a joke. 100k on a 15-16 year old car is quite low. Full service records+one owner+manual transmission+clean body+original paint=~$5000

What will break Are you a DIY shadetree mechanic? If so, go for it without hesitation, this car is quite easy to work on.