OK those sort of things I could probably handle as and when the time comes to sort them, And as you say potentially previous owners could have already swallowed some of that
Regarding engines and gearboxes are there any particular common faults or just the general things to look for in any car ?
How does this one look
http://search.autotrader.co.uk/es-u...icleYearOfManufacture=1997&vehicleRegLetter=R
That one is much better. It's 4k for a 12 year old car but to be honest at this budget its condition, condition, condition. Looks like a particularly lovely example which I'd care about more than whether its a 'bargain' or not. He's replaced the front door seals, this is the sort of thing only people as ridiculously anal as myself would bother doing, your average run a beemer cheap ***** innit won't even think about buying new door seals.
Although cooling systems etc can't be ignored and there is a chance the previous owner will have replaced it already suspension is a bit different. Most people dont notice the suspension degrading over time so you are very likely to find a car with suspension thats past its best. If it handles like a complete and utter boat, the suspension probably needs doing.
Engines - 96-97 M52 engines (Thats 520i (Which is crap, do not buy one), 523i (Pointless) and 528i (You want this one) are potentially affected by Nikasil bore linings which wore excessively due to sulphur content in fuel in the 90's. BMW replaced MOST of these under warranty, look for evidence the engine is not a Nikasil one. Otherwise the engines are very reliable indeed provided you don't blow the head gasket by ignoring a faulty cooling system.
Gearboxes are fundamentally reliable but the oil in the gearbox is 'filled for life' which is complete rubbish and its recommended the oil is changed at 100-120k.
Buying an E39 5 Series for 3-4k is, objectively speaking, a stupid thing to do. It will be reasonably old, reasonably high mileage, things will break. It is not a sensible thing to do in the slightest and there are numerous cars which, though technically not better (The E39 was indisputably the best executive saloon on the market until its replacement in 2003) there are many more trouble free alternatives.
That said if I had 3-4k I would... buy an E39 5 Series. You can pay to fix broken things but you cant pay to make a boring car interesting.