Personaly, I would touch only if free !!! (archive)

Thoughts:
It's an early example of a new series.
For me this would never be as desirable as the last of a previous series.
One would assume that any quirks are ironed out towards the end of a series.
Waterpump not working. Is this the reason why it overheated.
I very rarely is done by just exchanging your head gasket. Very likely the head will be worped too.
Electric wise they have a similar problem with the instruments. Speedo drops out i.e.
The 3.5 liter is a bit more economical.
This might be down to a noticable difference in torque between 3.2 and 3.5 liter engine at low speed.
This makes it more of a fun drive for me over a 3.2litre.
If you want to switch to E32 I would not switch to an early and so small modell.
740iL would be more like it.
The car you discribe is not completely worthless, but I this state without a buyer the present owner can just as well put it onto the scrapyard.
Especially since you also have vibrations at 80km/h. That can easily be a lot more than just a couple of tyres.

A friend in Germany has the same car since 1991 and he drives it from and to work every day on the Autobahn. Last time I saw it, it had 480,000KM on the clock and he was looking forward to 1/2 million. First engine !!!

I think I have heard that "Paul Fong" is selling his right hand steering white real 745 (original M-engine) with top end luxery interior.
Since he is in NZ as you are that looks very interesting alternative.
http://www.geocities.com/paulwf/My_BMW_M745i.html

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