E34 530i with the 218 hp M60 V8 engine - any comments

Hi,
I am thinking of buying one of theese 1993-1995 model, it seems possible to find them with around 200.000 kms driven, automatic transmission, leather, a/c, etc, for about eur 3.500 which seems
somewhat reasonable.
Only thing that might worry a little is that as far as I can see that engine was only used 1993-1995 which may (or may not?) indicate that it for some reason could be a no-no?
I am aware that it is probably not the most fuel-saving engine, but apart from that - any known issues?
** Lars
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Read this about the Nikasil engine. http://www.koalamotorsport.com/article-m60v8.asp
Kyle. 98 740iL 97 M3
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Lars Knudsen wrote:

The answer to your question lies here: <http://www.e34v8.co.uk/nikasil.htm
-Fred W
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There's also the COMPLETE E34 530/540i website too:
www.e34v8.org
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Brewster Fong wrote:

Yes, but the answer to the OPS question specifically about the 3 liter V8 is on the Nikasil page. That is why these cars can be great bargains (if the block has been changed already) or big money drains.
-Fred W
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Hi Lars,
Based on your mail address I assume you are located in Denmark. Forget the Nikasil horror stories, if the car comes from Germany or otherwise continental Europe. The high sulfur petrol was only a problem in US and UK and some other (South Africa?) countries. I drive a 09/92 German car that was brought over to Estonia in 1996 and has had russian petrol ever since. I now have passed 270000km mark and no signs of compression/power loss. Engine is generally in original condition (chain, cams, whole crank-piston group). Only major things I've done on it (apart from routine maintenance) are: water pump, thermostat, fan clutch, crankcase ventilation valve, air mass meter and O2 sensors. The clutch, cats and exhaust (stainless steel!) are still originals. What you should do though, is to check on the oil pump that is known to get loose.
Regards, Priit
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