picking up an E34 M5

[MattBimmer]

So I am picking up an E34 M5 that has a blown headgasket. Black with throwing stars and it has black leather. 1991:

What I want to know is what would you pay for a spectacular E34 M5 with new gaskets all the way up and a reebuilt head?

I am picking it up for 3000 looking at about 450 In parts and labor for the machine shop etc.
Think Ill make a good return if I decide to sell. I think so.

[gearheadE30]

They tend to go for between 8k and 20k from what I have seen. Later ones, particularly 1993 models, are worth the most in the US. Originality goes a long way with these cars as far as resale value goes, along with copious information on the very expensive to rebuild S38. For one in very good nice-weather daily shape, I'd put you in the neighborhood of $13k. For whatever reason, people just aren't willing to put much money into them.

See link for a nice example, that is pretty representative of the market:
linky

[Jb325is]

Ah you bought the car in NC.. Good luck! It's probably worth $7k if a headgasket fixes it but m5's can definitely dig you a deep hole pretty quickly. If you're looking to flip it I would do so as soon as possible

[Jb325is]

btw, that car is not a "spectacular" m5

[BoostinEuros]

Realistically, you could probably get 8k for it. I know the car you're speaking of. Be careful though. I've pulled the head off 3 BMW engines with a "blown headgasket", and all 3 had cracked heads. A cracked head on an S38 is very bad news!

Good luck, and post pics!

[Xaq]

I've been down this road. I bought a $3k 91 M5 a few years ago, had a blown HG, broken valve spring, and a severely warped head. $1300 bill from the machine shop to straighten it, surface both pieces (3 surfaces), re grind valves and seats, and set valve clearances. That plus $500 on valve springs, and another $500 on timing rails and guides. The parts on s38's are made of gold.
Now, at 215K, and $8k into the car it's starting to use more oil, and I fear the bottom end will need a rebuild soon. That's a big bullet to bite... I love the car, but a $5k+ rebuild on my car that's worth $8k...could be worth it if it will be worth $13k afterwards...
The point I'm trying to make is a $3k M5 is just that, you don't buy one for 3k, slap a head gasket into it and have a $13k car. Trust me.

Back to your car. With that high of mileage and those compression numbers, it looks like the engine is near the end of its life. Expect a $1000+ bill from a machine shop for the head alone, you'll probably want to at least do the timing components ($500 in parts) also to protect your fresh head. Once the car is back on the road you'll find all kinds of surprises in the drive line and suspension....and the hole only gets deeper from there. On the plus side, keep all your receipts because any thing you put into the car basically gets tacked on to your $3k purchase price. You can end up with a $13k M5 by building one...

[richardM30]

I've seen E34 M5s as cheap as $5K now, and a couple insanely clean, low-mileage versions close to $20K.

If you're doing a head gasket, you should do a lot of the other maintenance that should be done while the engine's open - especially all the timing-related bits.

S38s need a LOT of maintenance, sadly.

If everything's been sorted to that respect, you could easily get $9K for it and up, I'd guess... so still worth it.

[broke30]

So I am picking up an E34 M5 that has a blown headgasket. Black with throwing stars and it has black leather. 1991:

What I want to know is what would you pay for a spectacular E34 M5 with new gaskets all the way up and a reebuilt head?

I am picking it up for 3000 looking at about 450 In parts and labor for the machine shop etc.
Think Ill make a good return if I decide to sell. I think so.

Uhhh, no.

That being said, if it's done right and the body is in good shape along with good suspension and all, I'd see you fetching $14k tops, unless it seriously is immaculate.

Max

[TDE30]

$450 in parts and labor might get you a valve job at best. They're great cars, but (right now at least) terrible investments; in fact, the words "good return" shouldn't be in any E34 M5 owner's lexicon. My father probably couldn't see his for the price of the engine rebuild right now, they're way undervalued right now. If you have $3k that's burning a hole in your pocket, go after a 535i/5 and then work your way to an M5 eventually.

/$0.02