'86 325e shouldn't have clear coat, unless it was resprayed with dual stage paint. Fading can usually be brought back to a proper finish if you know how to use a buffer properly (fading, not full blown oxidation or paint failure). Paint chipping will not.
Sounds like it's had some nice maintenance. Find out when that stuff was done, specifically the timing belt.
Sounds like it's had some nice maintenance. Find out when that stuff was done, specifically the timing belt.

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