1994 540iA E34 - Need Info - Opinions

[Jimmy535i]

I looked at a 1994 540iA with 149K miles on it today.
Car has had 2 owners; appears to be well maintained;
Color is Oxford Green with parchment interior.

I was curious as to what problems can be expected
from this engine? I have owned several E34s with the
3.5L I6. but never one with the V8.

Next question: What is this car worth?
I have access to Galves, Edmunds, and KBB but would
like to know the boards opinion.

Thanks all and Happy Easter and Passover to all.

[Super90]

This is one of the early V-8's that came with a Nikasil block. If it hasn't already been replaced, you don't want it. If it has the documentation for the new block, then you might consider it.

As far as problems with the M60 motor, this has been discussed recently, but the list is something like this: valve cover gaskets, PCV plate, intake seals, power steering hoses, cyclonic oil sepator, galley cover gaskets. If the first three are good, the engine will probably be OK. The next couple are real issues too, but not seen so much yet, but the higher milage engines are seeing them.

It's not a "bad" motor, but has more idiosyncracies than the I6's

Ping me if you want more info.

[Jimmy535i]

Thanks for the info. I will check if this has had a new block installed.
I had heard something about this issue with this motor, but you clarified the issue for me. Thanks again.

[l8apex]

I am the original owner of a 1994 Oxford Green/Parchment 540iA. It has about 180,000 miles on the original Nikasil block, and I love it. Mine may be an exception, but it still runs strong and hard. I track it regularly and don't baby it. I had a leakdown test done at about 150,000 miles, and it passed on all cylinders. I attrbute this to always using AMOCO Gold (low sulphur). I am located in the midwest (low sulphur). Most of the miles are 2 or 3 hour trips at highway speeds (the engine reached operating temperature and maintained it for long periods of time=burns off more sulphur, as apposed to short trips in stop-and-go traffic in which the engine is at idle for a good amount of time).
If you really like the car, insist on a leakdown test, your nickel if it passes and you buy it, the current owners nickel if it fails.
Of course, if it fails, you don't want it unless he'll sell for a substantial discount, as the engine block replacement can easily exceed $5000. Keep in mind that thhere here are good used Alusil M60 engines available at recycling yards.
The only issue I've ever had with the engine is some valve cover gasket leaks which resolved with tightening down the valve cover bolts.
Let me know what you decide....
Dave Brennan

[Jimmy535i]

Thank you for your input and advice. I have emailed my friend at a dealership to find out if it has had the block replaced already. The seller is the second owner who has had it 2 years and does not know weather this work was done or not.

[Jimmy535i]

Here is answer from the dealer.

DEAR JIM,
HOW ARE YOU? GREAT HEARING FROM YOU. I HAVE NO INFORMATION THAT THIS M60 MOTOR WAS EVER REPLACED. THE KICKEL BLOCK JUST LOOSES COMPRESSION FROM THE BORE WARPING DUE TO THE FUEL USED. IT STARTS WITH A ROUGH IDLE CONDITION AND THEN IS HARD TO START AND KEEP RUNNING. A COMPRESSION TEST WILL ALWAYS DETERMINE THAT A BLOCK IS FAILED. IT HAD A 6YR 100,000 MILE WARRANTY ON THE BLOCK PARTS AND LABOR. OTHERWISE NO RECALLS ARE DUE AND THE CAR HAD NO WARRANTY REPAIRS DONE THAT WERE LISTED. ANY OTHER QUESTIONS CALL ME . SEE BELOW FOR VIN INFO.

Vehicle Information
VIN: WBAHE6327R GF29745
Model Code: 9458 HE63
Model Desc: 540iA
Engineering Series: E34
Motor Type: M60
Color Code: 324 (OXFORD GREEN METALLIC)
Trim Code: 0453 (PARCH. LTH/WOOD)
Production Date: 1994/01


Retail Dealer: 30900
Retail Date: 06/23/1994
Wholesale Dealer: 30900
Wholesale Date: 03/15/1994

NEW VEHICLE WARRANTY

Expiration Date: 06/23/1998
Expiration Miles: 50,000

Comments:

Vehicle Options
Code Description Code Description
0057 540IA GROUP 0088 FULL VPC - 535 & 7SERIES
0494 heated front seats 0205 automatic transmission
0214 ASC+T
Open Campaign Information

[Bill H.]

Nobody knows the real number of failures...seems everyone knows of many examples of these ~still~ very strong running V8's. "The sky is falling."

[Super90]

No, Nikasil is not a death sentence, but, all things held equal, you would want a car with the Alusil replacement block! I also have a strong running Nik block, but, having a Nik block M60 is like a hot potato, no one wants it when you are tired of holding it! All things equal, I would rather not be the "custodian" of this car.

If you decide to buy the car, realize that you would really want a discount on it relative to the exact same car with the Alu block, because you are purchasing an asset with a lower level of salability. There is a smaller number of people willing to buy that Nik blocked car, relatively speaking.

The best way to get your value out of that car is to drive it so long that the price difference would be inconsequential. In other words, neither car is worth much, the Nik blocked car or the Alusil blocked car. While driving a car until it isn't worth anything is always a good idea, it is especially true in this case.

All these are reasons for my previous post.

[Super90]

No myth, one of the techs at my indy has personally replaced several dozen Nik blocks back when he worked at a BMW dealership. He will tell you loads of stories of them failing. He used to love it when the weather would drop cold here in South Texas, then a couple of days later, there would be half a dozen M60's on the door step of the service center because they didn't run worth a damn in the mornings.

Truth of the matter is, the cars that are still on the road with Nik blocks are the survivors and probably OK. Natural selection and all that. But one never knows!

[Jimmy535i]

Thanks for your opinions, information and advice. This car has not had a
replacement block. At least not that the dealer knows about. I did notice
a new behr radiator. I hope it did not overheat recently. The guy selling it has owned 2 years and he appears very maticulous. His asking price is under $6K.