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The early 525i cars are underpowered. They aren't bad with a stick, but with an automatic they are SLOW. Also the M20 engine in the early 525i has a timing belt. One more thing to break/fix.

Later 525i cars get the updated M50 engine. About 20 HP more and lower maintance costs. The M50 powered cars are the least expensive 5 series to maintain.

However even with the dog engine you are still getting an e34 BMW, one of the best sedans ever made. The basic car is durable, comfortable and a pleasure to drive. I doubt you can find as nice a car for anything near the same price.
Things to consider if you still want the '90 525i.
(or any '89 to '93 5-series)

New shocks will set you back about $500 for parts and a hundreds more for labor. Oil leaks are expensive to fix too. Live with them or find a different car.
Previous owner maintance is important to consider. If the car has a shady maintance history, walk away.
If the gauges don't work right, you are looking at $700 or so to have them fixed.

If the front suspension is bad along with the shocks (a common problem at that age) you are looking at another $500-$1000 in repairs.

Other common failures -- Radiator, water pump, Auxliary fan. If these haven't been replaced, you will have too do them in the next few years.

Also check the VIN tags on the fenders, hood and doors. There should be a little silver tag
with the VIN number on each. The number should match the Car's vin number. If the numbers don't match, or the sticker says DOT-R, that panel has been replaced. If so, get an expert to check for more serious collision damage, or find a different car.

Price depends on a lot, and I don't really know what the car is like. I'd say
If the price is over $7500, keep looking.
If you can get the car for under $5000 and don't mind the lack of power, go for it. Be sure to budget a few thousand for repairs.

Personally, I prefer the 535i for the extra power. The M30 engine used in the 535i is extreamly durable -- they often go 300,000 miles or more. My 1990 535i is running great at 210,000 miles.
The M50 engine is quite good too.

Watch out for the early V8 engine used in the 530i and 540i -- they have problems, check the archive.

its in great cond. but it needs new shocks, there are a few oil leaks, and headliner has fallen a little bit in places. what else should i look at on the car, and what is the highest price i should pay?

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