Faults:

Idle refuses to settle (likely due to the ICV, hasn't been fixed yet)

Rough when started in cold. Once warm, silky smooth.

Paint peel on roof, trunk.

Soft clunk heard in rear end when gas pedal engages/disengages. This could be rear end wear, or just the limited-slip engaging/disengaging.

General Comments:

You cannot drive this car and not know it's a BMW. We'll start with that statement. Everything in this car is solid and direct, with no play or slack, with the possible exception of the rear end. The gas pedal and brakes are completely linear. The steering is immediate and precise at all speeds (maybe a little heavy in parking lots) and the suspension holds no matter what road is underneath it.

Performance wise, once it's warmed up, she goes. You've got D and 3 for drive modes. D is your four speed, economical (though still quite quick) driving mode, where you'll do about 85% of your driving. 3 is Sport mode. Nail the throttle from a dead stop in 3 mode and the car surges forward as if it were shunted by a freight train. No wheel slip on dry tarmac, thanks to the limited slip. She pulls to 80km/h in 1st gear before changing down for 2nd (at about 4500rpm). The ETA models, the 325e and 528e, only had 4700rpm redlines. The gearing is designed so this is more than adequate, however.

In terms of reliability, I don't think there's much that could take this car out of commission. The ICV valve on these engines is notorious for dirty deposits screwing with the idle speed (resulting in an up-down-up-down idle) but this is very easily fixed. Clean the valve, switch to Chevron gas (Techron DOES help!) or just replace the valve. Costs are where BMWs can nip you in the bud. The tuneup performed on the car before I received it (new ignition system components, oil, filter, coolant) ran $700 for the parts alone. Insurance with collision is 185 per month. So I took out the collision, to bring it down to 121.

The interior, and comfort, are top notch. I have the cloth seats, a new CD deck, and the original Alpine speakers, and everything works as it should. Even the Cruise still works. The only thing that sucks is the digital clock. You can't read it, no matter how dark it is. At night it doesn't seem to light up at all. So the CD deck keeps track of time.

You get a lot of looks and compliments on the car. Even with the peeling paint. I had one guy in a '98 540i pull up next to me at a light and give me the thumbs up. You can't beat that.

You can't beat the car, either.

Faults:

The on-board computer lights went out, but were a cheap fix.

The leather seats are worn, but not as much as you would expect from a car from this genre or mileage.

Other than routine service this car has not had many problems.

General Comments:

The 2.7 liter 6 cylinder is peppy and responsive considering its 4,500 RPM red-line. Gas efficiency and power in one nice package. Car achieves 25 miles per gallon, not too bad for a 6.

The handling is very nice on this car, easy to take exit ramps at 60 miles per hour without any fear of the rear-end coming out from under you.

I would definitely recommend this car to anyone.

Faults:

Replaced back tires.

I had to replace a loose alternator belt.

One hose leaked, so I replaced all the hoses.

Had to replace the water pump.

Drivers side door makes a weird noise when opened and closed.

Front passenger side window works when it wants to.

Chrome molding around the driver's side door fell off.

General Comments:

This is my first car, and unfortunately it has had me on the side of the road three times. Two out of the three problems (leaky hose, disconnected battery cable) were remedied while on the road and only once (failed water pump) did I have to have it towed to a mechanic. I have learned a lot about cars this year.

I love the way the car handles turns.

I'm still not used to the loud European engine.

This car still looks good inside and out, despite its age. You can tell its quality is better than a lot of cars that are newer.