1988 BMW 520i "grey market" PROJECT manual

Description for BMW 5-Series 1988

First year of the E34 product line, imported from Germany as a grey market car and converted to US spec. Just had the Level 1 inspection to transfer the title into my name, all back taxes and fees have been paid. Clear title.

Carfax shows this car first appearing in the US at 1300 miles in Texas. My guess is this was brought back by a serviceman from Germany and intitally titaled in Texas. It shows a US conversion conducted in California, but lived it's life in Texas and Arizona. I contacted the company but they do not keep records beyond 10 years so there was no more detail there. The car has US speedo and other indications of the conversion, but also lots of German on the fuse box and other areas. Manual windows, analog clock, steel wheels with hubcaps, manual sunroof - all indications of the base model E34 from Germany. Manual seats as well.

I bought the car at an auction, and it did not run - thought I could figure it out. After much troubleshooting, finally realized that the head had been changed (overheated ?) to an ETA 2.7 head which gave it low compression, resulting in the no start situation. I pulled the head to confirm. CAR DOES NOT RUN. The head must be sourced from Europe, as the M20B20 engine was not sold in US. So this is a project car. A very cool project car.

So, what to do?

1. Buy a used 325i motor and computer, mate it to the manual tranny, and drive it. Probably $500 or less, assuming free labor. Simplest path to success.

2. Find a 525i 1989/1990 and swap the motor/computer. Same as #1.

3. Find a 1991 or later 525i with the M50 motor and do a donor swap. Interior would swap as well. (I strongly considered this option).

4. 535I swap, but would need a manual as the tranny won't match.

5. Go big and put a Chevy engine into it.

Since I have never driven it, I cannot attest to the brakes, steering, etc. I know the fuel system works, as I cleared out the gas and put new gas via the fuel pump.

The interior is cloth, and it is worn. Plan to either re-do or replace (option 3). Dash is good, door panels are in needof help. Crank windows work fine. Plan on some electrical and finish work. Paint is pretty good, but the body does have some dings and bumps - nothing major, but still. The front grill/bumper has some damage.

Overall, a great project with a semi-rare lighter than US spec car that could be a cool sleeper, daily econo-driver or kids first car/project with dad. No reserve listing.

Must pick up in Mesa AZ or arrange for shipping.

** Update: ** I noticed when I listed it that it indicates a "minor title issue". When the car was transferred from the previous owner to the auction house I bought it from, they selected box "C" instead of "A", which is True Mileage Unknown (TMU). This is unfortunate becasue the mileage does match the odometer and tracks to the Carfax history of the car - but once box "C" is selected this can't be changed. So it shows in the title search as a TMU, even though the mileage is correct.