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

C an 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.
HISTORY
The 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
101
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 THEM
BMW 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. >>
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

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.
BODY
No 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 .
NOT EVEN A CAM BELT TO REPLACE AND THE
BIG SIX JUST GOES ON AND ON
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.
ENGINE
The 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

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

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
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.
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 controlled
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.
103
See our step-by-step Motronic fault-find -
ing guide on page 71 for more details.
TRANSMISSION
Manual 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
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
Again, 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 THEM
There’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 As for maintenance, all cars are cov -
again — BMW dealers are the very best of ered by the BMW Four Plus scheme oper-
any manufacturer for parts supply and ated by most dealers, with those in the
most will either have what you want on North offering some superb deals.
the shelf or get it next day. Otherwise, visit your local specialist
Luckily the cars we’re talking about but be careful if you let a general garage
here pre-date the return of the dreaded change your cam belt — it’s easily cocked
metric tyres as found on later E34s but do up and you’ll lose about 15 bhp if it’s one
avoid really cheap tyres as they let these tooth out. Let your established specialist
cars down. or a main dealer do this one.
IT’S MINE
Steve Kerry and his wife Christine have owned BMWs for the past 15 years and he’s
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.
“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
dealer who do an excellent job — it’s just sailed through its MoT which isn’t bad for a
12 year old car with 115,000 miles!” Steve’s car is a Luxor Beige metallic SE model
with the manual gearbox and being the SE model, also has the cross-spoke alloy
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.