100 BUYING

GUIDE

EXPERT GUIDE: 1988-1991 E34

A revelation after the square-rigged E28, the E34 still
looks modern today. We help you avoid the nails.

Words: Andrew Everett, Paul Wager

P H O T O G R A P H Y: D A V I D W I G M O R E
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C an you remember the launch of the

BMW E34 5-Series? Thought not.
How those 12 years have shot by. Born
launched in 1986, the E34 not only made
the outgoing square-rigged E28 look pre-
historic but it also made the replacement
specification but power steering, central
locking and electric windows were stan-
dard, with optional SE versions of all cars
into the heady days of Thatcher’s Britain, of the E30 3-Series more urgent and the except the 520i offering alloy wheels,
the E34 mirrored its time, bristling with Six look very old indeed. electric sunroof and fog lamps as well as a
sleek confidence and the stunning good Handling and ride were light years leather-rimmed steering wheel. For some
looks of a millionaire City trader bellow - ahead of the E28 and everyone agreed strange reason, the SE version of the 520i
ing into an outsized mobile phone. the new car was a superb drive with great was held back until September.
Mercedes had well and truly stuffed the vice-free handling, a supple ride and a February 1989 saw the launch of the
E28 when it launched the W124 range of confidence about it that the old E28 some- classic 535i Sport. With M-Tech body
cars in 1986 but now it was BMW’s turn. times lacked. Apart from unremarkable styling, five-speed sports gearbox or a
In its eight-year life, the E34 raised rear legroom and very average 520i per- switchable four-speed automatic, standard
BMW’s profile to greater heights and set formance, the E34 was just about perfect. ABS, limited-slip differential and sports
its sights at a simple goal: to be the finest Base model was the 520i, again with suspension, the new car filled some of the
executive saloon available. It’s a crown the the 130 bhp M20 12-valve straight six, void left by the old E28 M5 and remains a
5-Series hasn’t relinquished since. now featuring Bosch Motronic engine very popular and sought-after car — espe-
management. Next up was the 525i, and cially in rare manual form.
rather than use the M30 engine from the Major change and consolidation for the
HISTORY old 525i, the new car used the 2494cc M20 E34 happened in 1990 with the relaunch
The E34 was launched at every UK dealer unit straight from the 325i — lighter than of the 518i. Launched in May 1990, this
on the evening of Thursday 2nd June the older engine and with 20 bhp more. company car tax-break special used the
1988 and was the result of almost five Next in the line up came the ill-fated M40 1796cc engine and proved another
years’ development work. Very much a 530i. Ill-fated not because its design was big success for BMW — just look how many
scaled-down version of the lacking but because it proved a bit of a you see around. It was no M5 but it wasn’t
E32 7-Series sales lemon. With little extra performance that much slower than the 520i and quiet
from the old-school M30 188 bhp engine 100 mph cruising was no problem.
and a £3000 higher purchase price, the Our story ends in September 1990 with
poor 530i was doomed from the start. the launch of the new M50 24-valve
Sat proudly above these three though engines, which meant the temporary end
was the mighty 535i, a 218 bhp mis- of the 530i and we’ll be shopping for one
sile with 140 mph performance of these in a later issue.
and suitable acceleration.
BMWs from this era
weren’t equipped as BUYING THEM
standard to an BMW built shiploads of E34s and the
overly high 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. >>
102 BUYING
GUIDE

Erratic idle can be due

to a gummed up idle
control valve (above).
Big sixes are bullet-
proof but 520i and 518i
units need regular cam
belt changes.

WITH A CHAIN-DRIVEN CAMSHAFT, THERE’S

NOT EVEN A CAM BELT TO REPLACE AND THE
BIG SIX JUST GOES ON AND ON
However, the relatively high values of properly and that it goes from hot to The six-cylinder cars are better, with
even the oldest E34 mean that unless it’s cold within a few seconds. If not, it’s a the old M30 engine in the 530i and 535i
been built from two write-offs or used as a problem with the electronic heater valve reckoned to be the stronger unit and the
minicab, no E34 is beyond saving. That or the temperature sensor and simple most tolerant of neglect and abuse. Both
£2000 520i could, with a bit of time and enough to fix with the help of a Bentley engines need regular oil changes along
money, be a really good car again. or Haynes manual. with tappet checking and new coolant
The pre-1991 central locking system every couple of years and that’s about it.
can suffer from actuator failure although With a chain-driven camshaft, there’s not
BODY later models with a different system are even a cam belt to replace and the big six
No worries here — almost 50 per cent of actually worse. just goes on and on but by 200,000 miles
the E34’s shell was galvanised with the may be showing its age.
result that rust just isn’t an issue. Even the Check for head gasket failure by remov-
earliest cars survive in great shape ENGINE ing the expansion tank cap and checking
although you’ll find stone chipping on the The 518i was most likely bought by com- for oil in the water. We’ve seen an E-regis-
bonnet and maybe the front of the wheel- pany fleets and many have led a hard life. tered 535i with thick black engine oil in
arches on high-mileage cars. Even so, the M40 engine is a tough old here which is an extreme case.
Any rust will be due to a poor repair thing and it’s reliable. However, this unit The M30 doesn’t really
and even after 250,000 miles the doors is particular about cam belt changes and suffer from head cracking,
should still ‘thunk’ shut solidly. Electric one specialist recommends a belt and ten - but the M20 engine in the
sunroofs don’t seem to fail as long as sioner change at 25,000 miles.
they’ve been oiled twice a year although It can also suffer from noisy tappets
the old problem of broken manual sunroof and camshaft wear but this seems to be
handles persists — if you don’t oil the random and almost always on 100,000-
sunroof slides, they get stiff and the mile cars. On the plus side, it’s a very easy
handle breaks. engine to work on and it’s so lost in that
Running along the bottom of the doors engine bay you could climb in
and wings is a plastic-coated steel trim there with it.
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 .

INTERIOR
The 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
 103

These plastic trim strips start to distort with age

but 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 The M20 engine needs a new cam belt See our step-by-step Motronic fault-find -
allowed alloy corrosion from the unpro- and tensioner every 30,000 miles ing guide on page 71 for more details.
tected head to silt up the bottom of the although some say you can leave it for
radiator. Any BMW of this age will really 60,000 — risky in our view. A BMW deal-
benefit from having the radiator removed er charges £170 for a new belt as opposed TRANSMISSION
and reverse-flushed, a set of new hoses to £1500 for a new head. Get the idea? Manual cars use the same five-speed gear-
and fresh anti-freeze. Fuel injection and ignition are controlled box BMW have used since the dawn of
Check the viscous fan coupling by seeing by the Bosch Motronic engine management time and it’s a good reliable unit. Syncros
if the engine tries to overheat after idling system which is very reliable. Fit a new will wear with age but even at 150,000
when hot. Water pumps aren’t a major fuel filter at the specified intervals, don’t miles it should still be fine. The automatics
weak point but at 90,000 miles fit a new jet-wash or steam clean the engine bay are a different story. The oil is supposed to
one for peace of mind. It’s easiest to have and never start a Motronic car with a be changed every Inspection 2 service
it done at the same time as the cam belt. booster starter — you could ruin the ECU. (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
worked 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. >>
104 BUYING
GUIDE

Pre-’91 central locking can fail but it’s usually

only the actuator motor, which is surprisingly
cheap — just £50 from the dealer.

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 SUSPENSION We’ve said it before and we’ll say it As for maintenance, all cars are cov -
Again, it’s a tough old barge and there are again — BMW dealers are the very best of ered by the BMW Four Plus scheme oper-
only a few things to look out for. Run the any manufacturer for parts supply and ated by most dealers, with those in the
brake pads too low and the callipers may most will either have what you want on North offering some superb deals.
stick on, leading to a nasty vibration. the shelf or get it next day. Otherwise, visit your local specialist
Clonks from the rear end over speed Luckily the cars we’re talking about but be careful if you let a general garage
bumps are the rear top damper mounting here pre-date the return of the dreaded change your cam belt — it’s easily cocked
rubbers failing, while vague steering along metric tyres as found on later E34s but do up and you’ll lose about 15 bhp if it’s one
with brake judder is due to the front avoid really cheap tyres as they let these tooth out. Let your established specialist
lower wishbone inner bushes failing — cars down. or a main dealer do this one.
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
IT’S MINE
Steve Kerry and his wife Christine have owned BMWs for the past 15 years and he’s
a worn balljoint somewhere at the front. owned this 1989 520i for four years. “This car replaced an E28 528i and I did miss
the performance — before that I had an E28 520i, an E12 528i and an early 316,”
says Steve.
RUNNING THEM “The first owner was an accountant at the local Fiat dealer and the day it went on
the forecourt, I bought it. It has always been serviced by Bridgegate, my local BMW
There’s no problem with parts here dealer who do an excellent job — it’s just sailed through its MoT which isn’t bad for a
because there is absolutely nothing that 12 year old car with 115,000 miles!” Steve’s car is a Luxor Beige metallic SE model
you can’t buy new from BMW — even with the manual gearbox and being the SE model, also has the cross-spoke alloy
replacement seat covers, at a price. wheels, four electric windows, electric sunroof and the bigger toolkit in the bootlid
which is still intact.
 105

WHAT TO PAY PARTS INSURING THEM

The oldest E34s are down to very tempting levels, with MAIN DEALER MAIL ORDER The E34 isn’t a cheap car to cover, with even the 518i
some mega-mileage 518is in faded white struggling Radiator (manual) £187 £123 finding itself in group 13 and the 535i SE getting a hefty
through the auctions on their plastic hubcaps at around Water pump £50 £25 group 17 rating.
£1500. Pay sensible money though and you can pick up a Front shock absorbers (pair) £169 £106 If you’re a 35-year-old telesales manager with five
sound, well-equipped and stylish car which really doesn’t Rear damper mounts (each) £21 £26 years’ NCB and you’ve got a 1989 525i SE on the drive,
look 10 years old. Front brake discs (pair) £112 £65 you’ll get it covered for £455 fully comprehensive from
£6000 Top whack for a mint, low mileage 1990 535i www.insureyourmotor.com.
Sport with leather and all the toys. Lovely. Any
more and you’re approaching M5 territory. SERVICING
MAIN DEALER SPECIALIST
£4500 About the right money for a very nice historied
Inspection 1 £238 £150
1990 G plated 525i auto from a dealer or a
Inspection 2 £293 £200
decent 535i privately. Good 1991 518is are
Cam belt £174 £125
about this level too and are surprisingly popular.
Clutch, fitted £313 £275
£3500 Look in the free ads paper and there are loads of
All prices are approximate and include VAT. Thanks to BMW
E34s around for this amount. Be careful though
main dealer Murketts of Huntingdon (01480 459551).
as some are dressed up £1500 cars. Look for a
clean 1989 520i with alloys and SE spec. Keep
your eyes open for a 530i. Thirsty yes, but still a
rapid car with fuel consumption no worse than a
hard-driven 2-litre.

£1500 Yes, they are down to this level now. You’re not
going to find rust or mint 535is but expect inter-
stellar mileage 520i autos in white with plastic
wheeltrims and a tired driver’s seat. If this is
your bag, at least it’s one of the best ways to
spend that £1500.

WHERE TO BUY
There are now loads of E34s floating around in auctions
but be careful — these cars are very saleable and they’re
in there for a reason. It’s either a car with a problem or
simply a trade-in from a big dealer chain and you need to
know which one you’re looking at. Don’t pay any more
than £1500 for a 1989 car just in case it needs £800-
worth of work. Otherwise you’ll find loads in the usual
classified papers, while independent car sales outfits
specialising in BMWs will have some of the cleanest cars
at sensible prices or will happily find you what you want.

VERDICT
ORIGINAL The E34 was undoubtedly the car that made Mercedes
sit up and take notice, and even today it’s well worth
PRICES owning. Just £4000 buys you something really nice, a car
which if looked after will last almost forever and still
518i £16,800
look modern.
520i £21,000
Sure, there are many cars out there that have led a
525i £23,603
hard life, and priced accordingly these can be great
525i SE £24,672
bargains as the basic car is so strong. Once bought, do
535i Sport £31,024
maintain it properly though as skimping on servicing could
SE cost approximately £1000 extra, automatic £1300
result in big bills.
more. Recommended on-the-road prices from 1990.