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Mine used to do this, always stayed around 1/4 way until it idled for a long time, turns out it was the coolent sending unit wire was loose and was causing resistance. Fixed wire and gauge reades 1/3 to 1/4 and doesn't bounce around anymore
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If your engine is running too cold you will add additional wear to moving parts. BMW did their homework and know what temp their motors need to run at.
Your temp gauge should always read half way, but between 1/4 and 1/2 should be fine. My m20 always ran at 1/4.
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