A great used car value

The E34 525i (1989-1995) is probably the least notorious of the recent BMW's when compared to the 3-series, M-models, Z-series, and later model 5 series. It's kind of quiet, understated vehicle, and not as well noticed, and perhaps this contributes to a lower resale value. It is not uncommon to see 1995 325i selling for more than a 1995 525i on a used car lot, mostly in part to the popularity of the 3-series. I tried to exploit this phenomena, and I got lucky. I found an immaculate six year old 1995 525i for $13,500, compared to a Bluebook value of $15,500 wholesale to $23,500 retail. The car has been an absolute delight to own, considering it cost as much as a new Daewoo or Kia.

From an appearance standpoint, the 525i represents the typical BMW classic styling. It might not be as modern as the newer E39 5-series, but doesn't look outdated either. Consider the fact that the 1982-1988 E32 5-series still looks good. BMW's somehow maintain a timeless quality about them.

Anyways, onto to my Epinion.

The M50 engine of the 1995 525i is the same basic engine found in today's new 528i and 530i. It is a DOHC engine featuring a sophisticated engine management system. I find it to be somewhat underpowered for such a large vehicle, although my opinion is jaded from having owned several hotrods. If I had my druthers, I'd get the 540 V-8, but used editions are difficult to locate. The 1995 540i is a brilliant vehicle, but be forewarned that the 1994 540i had some problems with its cylinder sleeves which was corrected with the 1995 model year.

However, the 525i's 2.5 liter engine does make 189 HP according to BMW who usually deflates their published horsepower ratings. This car is faster than the 1995 Mercedes E320. It cruises effortlessly at 110 MPH and it has enough horses to pull away from most roadway obstacles (like slow drivers). The engine is silent most of the time, but it offers a nice throaty exhaust note when the gas pedal is mashed to the floor.

This is one of the first automatic transmission cars I've owned. I prefer a stick, even in a car this large, but the BMW auto 4 speed is a smooth shifting unit. It doesn't hunt for gears and it doesn't clunk on its upshifts when accelerating. Unfortunately, because it's an older model, it doesn't feature a manual shift mode, i.e. Tiptronic.

From a handling standpoint, it handles very well for a vehicle that weighs 3500 lbs. With a good set of sticky tires, the car is well balanced through tight corners, with a bit of understeer because of its bulk. From behind the wheel, it feels very sporty for a large car.

My car appears to have weathered its 54,000 miles of use very well. The interior, which features tan leather seats, still appears new, as do the plastic dash and door trim pieces. The wood trim around the console of the console has a few minor scratches, so storing objects with sharp edges around this area is not advised. The seats are heated which is something my wife and I appreciate on cold nights.

The back seat area is roomy, but if more space is required, then take a look at the 7-series L model which features a lengthened chassis. The console extends well past the front passenger seats and infringes on the leg room for a middle seat passenger. The console does feature rear vent controls for the back passengers. The fold down leather armrest of the rear seat also has a pass through bag for storing skis or long objects.

The trunk space is very roomy and can easily hold four large golf bags.

A used 525i is an excellent value and a superb car overall. If I didn't have 2 kids approaching college age, I'd buy a new 5 series, so I had to settle for used model, and I'm very happy to find a low mileage car at a great price. There are plenty of meticulous BMW owners out there who have taken great care of their cars, and a well preserved used 525i can be found with a little patience. If you're extremely lucky, perhaps you'll stumble across a deal for a 1995 540i with a six-speed.