1992 BMW 520i E34 – Project Profile

You’ve decided you want a classic, or modern classic car. But you want a project; something you can put your mark on and make your own. But what should you buy? There are myriad projects for sale here on Car & Classic, but which one is right for the new enthusiast? Well, while it might be tempting to buy the first thing you see that revs you up (put intended) it might be best to employ some restraint and some logic. For example, if you buy something rare, you’re going to have a hard time finding parts. You may also find that said parts expensive because of the aforementioned rarity. What you need is something classic, but that has a strong following. Something that won’t leave you stumped when you need parts, but something that’s also cool and standout. Something, then, like this handsome 1992 BMW 520i E34. Yes indeedy.

Classic and modern classic BMWs have a huge following. As such, there are clubs, online groups and specialist businesses set up to keep your spanners and your engine turning. Your first classic should be something that you can work on, and something that you can get parts for with ease. This keeps the motivation going, and it builds your confidence should you want to take on something more challenging later on. It should be a car that introduces you to new communities and new people. This BMW 520i has the potential to do all that. And the best bit? This particular example is a mere £1,000. Bargain.

What is it? 

The car we have here is a 1992 BMW 520i E34. This makes it the third version of the legendary 5 Series after the E12 and the E28. A handsome machine, the E34 was every bit the executive saloon, boasting impressive build quality, bomb-proof reliability and all in a package that still looks good today, thirty years on. But as suckers for a car with quad headlights, we would say that. This one is a 520i and yes, that means people who have never driven one will tell you it’s too small of an engine and too slow. Ignore them. The 2.0, six-cylinder engine under the forward-tilting bonnet of this fine machine is a gloriously smooth unit. Its only covered 110k, so isn’t even in the ballpark of being broken in yet, and best of all, this one is mated to a slick five-speed manual transmission meaning this car has the potential to be every bit the drivers’ car. It’s no M5, but the M50 engine does have 150bhp to play with, which is ample for getting around.

Why is it a project? 

Well, this particular BMW 520i was, according to the seller, a much loved vehicle. However, it’s been laid of for a number of years now, and as such needs someone to come and rescue it and get it back on the road. The paint, on the bonnet especially, is in need of repair. Some interior bits need attention, and of course, it’s in need of some mechanical attention. The seller states it will need new brake lines and flexis, new fuel lines, a new battery, new tyres and new shocks. There will be more work, too. But, it’s not exactly anything you can’t do at home, and it’s nowhere near bad enough to render this fine car as scrap. It can, and should, be repaired. Parts availability is good – even BMW main dealers still stock stuff – and these cars, in good condition, are only going one way in terms of value. Save this one, do it properly, and reap the rewards when it comes time to sell. Not convinced? Look at values for E28s. They were £500 cars not so long ago. The E34 is going the same way.

Five things to look for:

1) Rust

While the E34 was and indeed, still is a fine machine, it also loved to rot. Check the sills, the jacking points, the inner wings, the inner sills, the floors, the window surrounds, the… you get the idea. Check the whole car over for any serious rot.

2) Suspension

The seller says the shocks will need replacing, but don’t stop there. The E34 is a hungry monster when it comes to suspension, check subframe bushes, all the front suspension bushes and links and also the suspension springs. New parts are plentiful, but it never hurts to inspect them early to help price up what you’re going to need.

3) Electrics

As with any old car that’s been laid up, check the electrical systems. The E34 isn’t the most complicated car in the world, but it still has miles of wiring. Bring a battery with you and check everything works. Windows, sunroof, locking. Are all the digital/pixelated parts of the dash functional, does all the wiring in the engine bay look okay? The battery lives in the boot, so check the main lines there, too.

4) Trim

While mechanical parts are indeed easy to get hold, trim can be more difficult. As such, check all the door mouldings, the window surrounds, the lights, the grilles, the rear lights and so on. Check the interior, too. We know one door cards needs replacing, but what about everything else? Interior parts can be hard to find. Happily though, the seats seem to be in excellent condition, which is great news.

5) Engine

Given it needs fuel lines, getting the M50 to run for inspection might be difficult. However, you can always visually inspect the engine. Look at the oil, check the level and condition of the coolant, look for any leaks on or around the engine. Get yourself an inspection camera and have a look down the bores for any scoring or damage to the pistons.

What should you do with it? 

This BMW 520i is, make no mistake, something of a bargain. If it were our money buying it, we would first do all the mechanical work needed to get it running. Full service, new fluids, filters and plugs and so on. We’d sort the fuel lines out, the brakes, fit new suspension including bushes, new tyres and then get it MOTd. If it soaks up the miles without complaint, it’s deserving of more. So we’d go down the road of a full respray in black again, sort the interior out, and maybe upgrade those boring wheels for a set of BBS mesh alloys from another E34. After that, we’d simply enjoy the old thing. E34s are a joy to look at, a joy to work on and most importantly of all, a joy to drive. You could go as far as to suggest they’re the ultimate driving machine.