Words: Andrew Everett, Paul WagerP H O T O G R A P H Y: D A V ID W I G MO R E

B U Y I N GGUIDE

EXPERT GUIDE: 1988-1991 E34A revelation after the square-rigged E28, the E34 still

looks modern today. We help you avoid the nails.

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Can you remember the launch of the

BMW E34 5-Series? Thought not.

How those 12 years have shot by. Born

into the heady days of Thatcher’s Britain,

the E34 mirrored its time, bristling with

sleek confidence and the stunning good

looks of a millionaire City trader bellow-

ing into an outsized mobile phone.

Mercedes had well and truly stuffed the

E28 when it launched the W124 range of

cars in 1986 but now it was BMW’s turn.

In its eight-year life, the E34 raised

BMW’s profile to greater heights and set

its sights at a simple goal: to be the finest

executive saloon available. It’s a crown the

5-Series hasn’t relinquished since.

HISTORYThe E34 was launched at every UK dealer

on the evening of Thursday 2nd June

1988 and was the result of almost five

years’ development work. Very much a

scaled-down version of the

E32 7-Series

launched in 1986, the E34 not only made

the outgoing square-rigged E28 look pre-

historic but it also made the replacement

of the E30 3-Series more urgent and the

Six look very old indeed.

Handling and ride were light years

ahead of the E28 and everyone agreed

the new car was a superb drive with great

vice-free handling, a supple ride and a

confidence about it that the old E28 some-

times lacked. Apart from unremarkable

rear legroom and very average 520i per-

formance, the E34 was just about perfect.

Base model was the 520i, again with

the 130 bhp M20 12-valve straight six,

now featuring Bosch Motronic engine

management. Next up was the 525i, and

rather than use the M30 engine from the

old 525i, the new car used the 2494cc M20

unit straight from the 325i — lighter than

the older engine and with 20 bhp more.

Next in the line up came the ill-fated

530i. Ill-fated not because its design was

lacking but because it proved a bit of a

sales lemon. With little extra performance

from the old-school M30 188 bhp engine

and a £3000 higher purchase price, the

poor 530i was doomed from the start.

Sat proudly above these three though

was the mighty 535i, a 218 bhp mis-

sile with 140 mph performance

and suitable acceleration.

BMWs from this era

weren’t equipped as

standard to an

overly high

specification but power steering, central

locking and electric windows were stan-

dard, with optional SE versions of all cars

except the 520i offering alloy wheels,

electric sunroof and fog lamps as well as a

leather-rimmed steering wheel. For some

strange reason, the SE version of the 520i

was held back until September.

February 1989 saw the launch of the

classic 535i Sport. With M-Tech body

styling, five-speed sports gearbox or a

switchable four-speed automatic, standard

ABS, limited-slip differential and sports

suspension, the new car filled some of the

void left by the old E28 M5 and remains a

very popular and sought-after car — espe-

cially in rare manual form.

Major change and consolidation for the

E34 happened in 1990 with the relaunch

of the 518i. Launched in May 1990, this

company car tax-break special used the

M40 1796cc engine and proved another

big success for BMW — just look how many

you see around. It was no M5 but it wasn’ t

that much slower than the 520i and quiet

100 mph cruising was no problem.

Our story ends in September 1990 with

the launch of the new M50 24-valve

engines, which meant the temporary end

of the 530i and we’ll be shopping for one

of these in a later issue.

BUYING THEMBMW built shiploads of E34s and the

model was a big seller. Although it was a

superbly made car, it can suffer from

terrible neglect in uncaring hands and

the quality image seems to imply

that the car doesn’t need

much maintenance. > >

However, the relatively high values of

even the oldest E34 mean that unless it’s

been built from two write-offs or used as a

minicab, no E34 is beyond saving. That

£2000 520i could, with a bit of time and

money, be a really good car again.

BODYNo worries here — almost 50 per cent of

the E34’s shell was galvanised with the

result that rust just isn’t an issue. Even the

earliest cars survive in great shape

although you’ll find stone chipping on the

bonnet and maybe the front of the wheel-

arches on high-mileage cars.

Any rust will be due to a poor repair

and even after 250,000 miles the doors

should still ‘thunk’ shut solidly. Electric

sunroofs don’t seem to fail as long as

they’ve been oiled twice a year although

the old problem of broken manual sunroof

handles persists — if you don’t oil the

sunroof slides, they get stiff and the

handle breaks.

Running along the bottom of the doors

and wings is a plastic-coated steel trim

strip and on the oldest cars the steel may

be rusting inside the plastic. No problem

— buy a new set from BMW for around

£50 and pop them on.

INTERIORThe seats lasted a lot better than older

BMW designs but by now the driver’s seat

on early cars could be getting a bit doggy.

This isn’t always the case though, and

don’t forget a knackered driver’s seat

could give you enough haggling room for

a leather retrim.

Most E34s have been looked after and

the electric bits like the windows should

all work. Check that the heater works

properly and that it goes from hot to

cold within a few seconds. If not, it’s a

problem with the electronic heater valve

or the temperature sensor and simple

enough to fix with the help of a Bentley

or Haynes manual.

The pre-1991 central locking system

can suffer from actuator failure although

later models with a different system are

actually worse.

ENGINEThe 518i was most likely bought by com-

pany fleets and many have led a hard life.

Even so, the M40 engine is a tough old

thing and it’s reliable. However, this unit

is particular about cam belt changes and

one specialist recommends a belt and ten -

sioner change at 25,000 miles.

It can also suffer from noisy tappets

and camshaft wear but this seems to be

random and almost always on 100,000-

mile cars. On the plus side, it’s a very easy

engine to work on and it’s so lost in that

engine bay you could climb in

there with it.

The six-cylinder cars are better, with

the old M30 engine in the 530i and 535i

reckoned to be the stronger unit and the

most tolerant of neglect and abuse. Both

engines need regular oil changes along

with tappet checking and new coolant

every couple of years and that’s about it.

With a chain-driven camshaft, there’s not

even a cam belt to replace and the big six

just goes on and on but by 200,000 miles

may be showing its age.

Check for head gasket failure by remov-

ing the expansion tank cap and checking

for oil in the water. We’ve seen an E-regis-

tered 535i with thick black engine oil in

here which is an extreme case.

The M30 doesn’t really

suffer from head cracking,

but the M20 engine in the

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Erratic idle can be dueto a gummed up idlecontrol valve (above).Big sixes are bullet-proof but 520i and 518iunits need regular cambelt changes.

WITH A CHAIN-DRIVEN CAMSHAFT, THERE’SNOT EVEN A CAM BELT TO REPLACE AND THEBIG SIX JUST GOES ON AND ON

The M20 engine needs a new cam belt

and tensioner every 30,000 miles

although some say you can leave it for

60,000 — risky in our view. A BMW deal-

er charges £170 for a new belt as opposed

to £1500 for a new head. Get the idea?

Fuel injection and ignition are contro l l e d

by the Bosch Motronic engine management

system which is very reliable. Fit a new

fuel filter at the specified intervals, don’t

jet-wash or steam clean the engine bay

and never start a Motronic car with a

booster starter — you could ruin the ECU.

See our step-by-step Motronic fault-find-

ing guide on page 71 for more details.

TRANSMISSIONManual cars use the same five-speed gear-

box BMW have used since the dawn of

time and it’s a good reliable unit. Syncros

will wear with age but even at 150,000

miles it should still be fine. The automatics

are a different story. The oil is supposed to

be changed every Inspection 2 service

(about 30,000 miles) along with the oil

strainer but it never happens once they’re

out of the BMW dealer network.

I’ve seen automatics with 230,000

miles and fluid like black tar which still

w o r ked fine but if the strainer gets clogged

the box is starved of fluid and goes seri-

ously wrong. The automatic fluid should

be a light pinky colour on your finger and

if it’s dark brown it needs changing quickly.

Taking the gearbox pan off and fitting

a new filter isn’t a big job though

and automatic transmission

fluid (ATF) isn’t expensive.

Should the worst happen

and one of the non switch-

able units fails then it’s no

huge deal as £300 buys a

good used unit and depend-

ing on the exact model,

some 5 and 7-Series

units will fit.

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> >

These plastic trim strips start to distort with agebut they’re only around £50 per set from BMW.

520i and 525i certainly does. This is

caused by abusing the car with a low

water level or duff anti-freeze which has

allowed alloy corrosion from the unpro-

tected head to silt up the bottom of the

radiator. Any BMW of this age will really

benefit from having the radiator removed

and reverse-flushed, a set of new hoses

and fresh anti-freeze.

Check the viscous fan coupling by seeing

if the engine tries to overheat after idling

when hot. Water pumps aren’t a major

weak point but at 90,000 miles fit a new

one for peace of mind. It’s easiest to have

it done at the same time as the cam belt.

As for maintenance, all cars are cov -

ered by the BMW Four Plus scheme oper-

ated by most dealers, with those in the

North offering some superb deals.

Otherwise, visit your local specialist

but be careful if you let a general garage

change your cam belt — it’s easily cocked

up and you’ll lose about 15 bhp if it’s one

tooth out. Let your established specialist

or a main dealer do this one.

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The switchable unit though is big dol-

lars should it fail. The controller commu-

nicates with the engine management ECU

and the box has to be rebuilt, or replaced

with exactly the same model.

In operation, the box should change up

and down the ratios smoothly, kick down

promptly and the switchable bit should

switch. If it doesn’t, knock serious money

off or walk away. Even if you don’t use it,

switch from Sport to Economy a few times

every month to keep it working.

Even with abuse though, differentials

rarely whine and clutches seem to last

forever. Properly looked after — and

that’s the key — the E34 transmission

is excellent.

BRAKES, STEERING

AND SUSPENSIONAgain, it’s a tough old barge and there are

only a few things to look out for. Run the

brake pads too low and the callipers may

stick on, leading to a nasty vibration.

Clonks from the rear end over speed

bumps are the rear top damper mounting

rubbers failing, while vague steering along

with brake judder is due to the front

lower wishbone inner bushes failing —

both common faults and both cheap to fix.

Clonking on acceleration and deceleration

is due to the rear axle beam bushes being

well past it and rattling steering is due to

a worn balljoint somewhere at the front.

RUNNING THEMThere’s no problem with parts here

because there is absolutely nothing that

you can’t buy new from BMW — even

replacement seat covers, at a price.

We’ve said it before and we’ll say it

again — BMW dealers are the very best of

any manufacturer for parts supply and

most will either have what you want on

the shelf or get it next day.

Luckily the cars we’re talking about

here pre-date the return of the dreaded

metric tyres as found on later E34s but do

avoid really cheap tyres as they let these

cars down.

IT’S MINESteve Ke r ry and his wife Christine have owned BMWs for the past 15 years and he’sowned this 1989 520i for four years. “This car replaced an E28 528i and I did missthe performance — before that I had an E28 520i, an E12 528i and an early 316,”says Steve.

“The first owner was an accountant at the local Fiat dealer and the day it went onthe forecourt, I bought it. It has always been serviced by Bridgegate, my local BMWdealer who do an excellent job — it’s just sailed through its MoT which isn’t bad for a12 year old car with 115,000 miles!” Steve’s car is a Luxor Beige metallic SE modelwith the manual gearbox and being the SE model, also has the cross-spoke alloywheels, four electric windows, electric sunroof and the bigger toolkit in the bootlidwhich is still intact.

Pre-’91 central locking can fail but it’s usuallyonly the actuator motor, which is surprisinglycheap — just £50 from the dealer.

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ORIGINALPRICES5 1 8 i £ 1 6 , 8 0 05 2 0 i £ 2 1 , 0 0 05 2 5 i £ 2 3 , 6 0 3525i SE £ 2 4 , 6 7 2535i Sport £ 3 1 , 0 2 4SE cost approximately £1000 extra, automatic £1300more. Recommended on-the-road prices from 1990.

VERDICTThe E34 was undoubtedly the car that made Mercedes sit up and take notice, and even today it’s well worth owning. Just £4000 buys you something really nice, a carwhich if looked after will last almost forever and still look modern.

Sure, there are many cars out there that have led ahard life, and priced accordingly these can be great bargains as the basic car is so strong. Once bought, domaintain it properly though as skimping on servicing couldresult in big bills.

WHAT TO PAYThe oldest E34s are down to very tempting levels, withsome mega-mileage 518is in faded white strugglingthrough the auctions on their plastic hubcaps at around£1500. Pay sensible money though and you can pick up asound, well-equipped and stylish car which really doesn’tlook 10 years old.£ 6 0 0 0 Top whack for a mint, low mileage 1990 535i

S p o rt with leather and all the toys. Lo v e l y. Anymore and you’re approaching M5 territory.

£ 4 5 0 0 About the right money for a very nice historied1990 G plated 525i auto from a dealer or adecent 535i privately. Good 1991 518is are about this level too and are surprisingly popular.

£ 3 5 0 0 Look in the free ads paper and there are loads ofE34s around for this amount. Be careful thoughas some are dressed up £1500 cars. Look for aclean 1989 520i with alloys and SE spec. Ke e pyour eyes open for a 530i. Thirsty yes, but still arapid car with fuel consumption no worse than ahard-driven 2-litre.

£ 1 5 0 0 Yes, they are down to this level now. You’re notgoing to find rust or mint 535is but expect inter-stellar mileage 520i autos in white with plasticwheeltrims and a tired driver’s seat. If this is your bag, at least it’s one of the best ways tospend that £1500.

WHERE TO BUYThere are now loads of E34s floating around in auctionsbut be careful — these cars are very saleable and they’rein there for a reason. It’s either a car with a problem orsimply a trade-in from a big dealer chain and you need toknow which one you’re looking at. Don’t pay any morethan £1500 for a 1989 car just in case it needs £800-w o rth of work. Otherwise you’ll find loads in the usualclassified papers, while independent car sales outfits specialising in BMWs will have some of the cleanest carsat sensible prices or will happily find you what you want.

PARTSMAIN DEALER MAIL ORDER

Radiator (manual) £ 1 8 7 £ 1 2 3Water pump £ 5 0 £25 Front shock absorbers (pair) £ 1 6 9 £ 1 0 6Rear damper mounts (each) £ 2 1 £ 2 6Front brake discs (pair) £ 1 1 2 £ 6 5

SERVICINGMAIN DEALER S P E C I A L I S T

Inspection 1 £ 2 3 8 £ 1 5 0Inspection 2 £ 2 9 3 £ 2 0 0Cam belt £ 1 7 4 £ 1 2 5Clutch, fitted £ 3 1 3 £ 2 7 5

All prices are approximate and include VAT. Thanks to BMWmain dealer Murketts of Huntingdon (01480 459551).

INSURING THEMThe E34 isn’t a cheap car to cover, with even the 518i finding itself in group 13 and the 535i SE getting a heftygroup 17 rating.

If you’re a 35-year-old telesales manager with fiveyears’ NCB and you’ve got a 1989 525i SE on the drive,you’ll get it covered for £455 fully comprehensive fromw w w. i n s u r e y o u r m o t o r. c o m .