Doug's 1998 BMW 328is
Long Term Ownership Review
12 years, 188000 miles, and counting!
General Characteristics
There's so much good to say about the E36 series BMW, but I'll try to keep it to a few important points:
Engine and Transmission
The 328's real triumph, they work together simply and wonderfully, like a pair of accomplished dancers, smoothly shifting the car even when seemingly incredible demands are made by its driver. This is German engineering at its best.
Fit and Finish
I read a review in which the C5 Corvette was tested head-to-head against a BMW M3. In spite of the fact that the Corvette had a slight edge in the performance tests, the reviewers still chose the BMW over the Corvette. Why? The BMW's fit and finish was considered light years ahead of the Corvette. If you want a car, buy a Chevy. If you want a finely crafted machine, buy a BMW.
Suspension
I just don't know how BMW does it, but this is the finest stock suspension. I've ever driven. It absorbs bumps well and keeps the tires in contact with the road under conditions that would send lesser cars' wheels hopping and skidding. I realized how spoiled I was with regard to suspension quality when I purchased a VW GTI VR6 and bottomed the front-end on more than one occasion during what I would call "normal" driving.
I learned more about suspensions that I'd ordinarily care to while looking for suitable aftermarket suspension parts for the GTI, and I learned one simple thing: BMW does it the right way -- straight from the factory.
Anti-Spin-Control (ASC)
BMW's early traction control system, which reacts to excessive differential wheel spin by reducing throttle, really helps keep this car's rear in check. It also has the side-effect of saving the rear tires, since this car definitely has enough torque to spin the wheels around every corner if you're a bit too heavy on the pedal. While this system is not as advanced as the currently-shipping Dynamic Stability Control (DSC), which marries a yaw-rate sensor with four-wheel independent control of the ABS braking system, ASC gets the job done.
Brakes
While I know for a fact that the next generation E46 brakes stop a bit better than the E36 (or at least they seem to "grab" a bit more aggressively), the E36 BMW brakes are light years ahead of any domestic vehicle and it's not hard to understand why -- they're designed for munching miles on the autobahn at 100MPH+, while most domestic vehicles are clearly designed for our misguided 55MPH speed limits.
The brakes have worked consistently throughout their useful life, are easily modulated and have never warped. Of course, your mileage may vary, particularly if you do more city or performance driving than I do.
Stereo
My car came with the "premium" sound option. In this system, the head-unit and CD changer are made by Alpine for BMW, while the speakers and amplifier are made by Harmon Kardon.
In the seventh year of ownership one of the midrange drivers failed due to dry rot and I decided to replace all of the OEM speakers with aftermarket units. This upgrade improved the frequency response but did little for dynamic range of the system since the latter is most limited by the OEM amplifier. It's no audiophile system, I can assure you, but it's quite adequate for my needs.
Maintenance
I can sum up the negatives of a BMW in one word: maintenance. By far the
number one problem with BMWs, aside from their initial cost, is the cost
of maintenance. Of course, this makes a BMW no different than a Porsche
or any other high performance sports car but I make the point because
I get a lot of mail about this subject.
If you're thinking about buying your first BMW and you come from a world of Honda and Toyota ownership, consider for a moment whether you would freak out at the notion of spending a few thousand a year in maintenance costs on your car. If so, you would be well advised to steer clear of any sports car, including a BMW. For those willing and able to pay to play, read on.
Tires
The car eats tires every 25K miles. This is more of a function of the tire and driving style than the vehicle, but it's worth mentioning particularly if you intend to drive the car to the tune of 20K+ miles a year like I do. I effectively go through a set of tires every year.
Due to different wear patterns (front tires wear on the outside edges while the rears wear at the center, and the rears always wear faster than the fronts), tire rotation can negatively affect handling. For this reason BMW advises against rotation unless it is done at intervals of 3000 miles or less. Since this would get very expensive if you pay someone to do it, or just time consuming if you do it yourself, it's just cheaper and easier to put four new tires on the car when the rears are spent -- even if the fronts appear to have some life left in them. This sounds wasteful until you realize that many high performance tires tend to make a lot of noise when they reach about 1/2 of the original tread thickness, particularly when mounted on the front of the car, so by the time the rears are spent I'm tired of hearing the "wow wow wow" of the front tires at speed and I'm all too happy to replace them.
Keep in mind that the greatest enemy in any modern rear-wheel-drive sports car is worn tires. Don't scrimp on tires or you'll wind up in the weeds.
A good set of high performance Michelin tires is $1000. Tires destined for a BMW should be road-force balanced. Expect to pay $30-$40/wheel. If you were asleep in math class that's $1200 for a set of tires properly mounted and balanced. This job is not a DIY task so you're at the mercy of the local dealer / shop.
Brakes
Front brakes are usually spent in 30K while the rears usually need attention at twice that interval. Brake fluid should be flushed every two years maximum per BMW's recommendations, though every year is better.
Note that a brake job on a BMW involves replacement of rotors along with the pads because the parts are designed to wear equally, and by the time the pads are spent, the rotors are at or near minimum specs.
Also, cutting BMW rotors is a fool's errand. Don't do it. BMW rotors are cheap, so there is no excuse NOT to replace them outright. If you try to cut corners here you'll wind up pulling the brakes again shortly.
The average four wheel brake job at a dealer is $1200. If you DIY parts can be had for as little as $350.
Suspension
The car is equipped with struts in the front and shocks in the rear. BMW officially recommends the struts be replaced every 100K. I was forced to replace both front struts at 55K because I blew one of them out and BMW recommends replacement in pairs if they have been in service more than 20K miles.
Shocks should be replaced every 72K miles. The shocks may last longer than that but the assemblies should be pulled at this interval to inspect the shock mounts, a known weakness in the 3 series vehicles of this vintage.
One thing is sure -- these critical suspension components must be replaced on a regular interval or handling will slowly degrade to the point that you put the vehicle at risk when you need it to perform at the limit.
Expect to pay a dealer $1500 to do struts and shocks on this car. An indy shop should be able to do it for less. I advocate DIY suspension work only if you have the right tools and are somewhat experienced in working on cars as very real danger is involved if you screw something up. If you choose to DIY, OE struts and shocks can be had for around $600.
Transmission
Many people new to BMWs find it hard to believe that the E36 automatic transmission is made by a French division of GM. It was built under exclusive license for BMW. That license as since expired and a version of this transmission is found in currently-shipping GM vehicles. The latest ZF transmissions are better all-around automatics than this GM part ever will be, but you have to understand that its design is almost 20 years old. It was ahead of its time and it's still a fine transmission.
People say these transmissions are good for 150K miles or more and I have to believe that -- provided the fluid and filter are replaced on a regular basis. BMW tries to sell the idea of "lifetime" fluid, but they're on crack (well, unless "lifetime" is defined as less than 100K miles). In my opinion, the fluid and filter should be replaced at the first Inspection I and II (18K and 36K total miles, respectively) and then at every Inspection II (36K miles additional) thereafter. Not surprisingly, this is very similar to the maintenance schedule advocated by BMW prior to the advent of so-called "free scheduled maintenance". I have no data to back up this assertion except my knowledge of oil -- it simply doesn't last forever. The problem for prospective owners of high mileage cars is that it's very likely that the fluid has never been replaced, so you take some risk in replacing it later on. The theory is that the detergent qualities of new fluid can free deposits that can clog the valve body and this can cause more problems than it solves.
While I'm on the subject I'll point out that one of the most frequently asked questions I receive in email is "if you had to do it all over again, would you still buy the automatic?" The answer is YES. This is a street car that serves as a daily driver and while I enjoy driving a stick and consider it mandatory for track use, I do not wish to row a stick on the commute. Like many things in life this is a personal choice. If you're thinking about writing me to spout some dogma about the sacrilege of owning a BMW without a manual transmission, please do us both a favor and stop while you're ahead.
If you need to replace an automatic transmission, expect to spend around $2500 for the parts alone. The only acceptable replacement is a BMW OE remanufactured unit available exclusively from the dealer. You have been warned. Book labor is 10 hours, or $1200 at the dealer. Independents will often charge a lower labor rate but don't be surprised if they charge book labor, as many do. Either way, you're looking at a $3500+ expense. Compare and contrast that with a clutch job ($1200) and the eventual replacement to address weak / worn first gear synchros and there really isn't that much difference in the per mile expense of owning a manual vs. an automatic transmission. Again, it comes down to a personal choice and what you intend to do with the car.
Spark Plugs
BMW originally provided simple copper electrode plugs with the car when it was new. Those plugs were usually toast after 30K miles. BMW now sells and recommends a platinum equivalent for which the recommended replacement interval is 100K miles. My experience has shown that 72K miles is a more practical interval. The M52 engine is surprisingly finicky when it comes to the type and health of the spark plugs in use so I advocate only BMW NGK plugs.
BMW OE plugs are expensive but worth it. Figure about $65 in parts. Book labor is around an hour so it's relatively cheap to do this and keep the car idling and running smoothly. This is also easily within the reach of a DIY technician.
Cooling System
The E36's cooling system works very well and is surprisingly light for its size, due to its extensive use of aluminum and composite materials. However, that's where the praise ends. Expect to do a complete cooling system overhaul on these cars at 75K-100K miles as preventative maintenance. While experienced technicians will correctly note that some components of the system are more reliable than others (I got over 100K miles on most of them), you put the engine at risk of an overheat when one of them fails. And since the labor involved to replace some of these components is shared it just makes sense to do everything at once.
Of all the cooling system components the thermostat typically fails first, and more frequently. I only got 60K miles out of my original unit. It's replacement was still going strong at about 60K miles later when I replaced it as part of a total cooling system overhaul. A classic sign of a slowly dying thermostat is a temperature needle that fails to reach the 12 o'clock position after the car has been running (on the road...not idling) for about 10 minutes. This is a relatively benign failure mode, hence the reason you can stretch the replacement interval a bit.
The water pump is infamously unreliable beyond 80-120K miles. It's hard to be more specific regarding a service interval because there have been three revisions of the water pump throughout the life of the E36 and they each fail for different reasons. You don't want to be in the car when it goes because you will be left on the side of the road. There is a high quality "high flow" water pump available in the aftermarket. It's a fine piece, but it's three times the cost of the OE pumps. Do the math on that before you consider buying it.
The radiators usually crack where the hoses connect. This is due to the use of plastic in the design. An all-aluminum replacement is available in the aftermarket which is essentially a BMW OE part with the plastic parts replaced with nicely welded aluminum components. It's a fine piece but it's not cheap, and the part is still subject to the usual corrosion issues that may cause the radiator to fail, albeit after a longer time in service. If your vehicle serves double duty on the track this and the high-flow water pump are essential upgrades but for a street car I don't think the math makes sense. Incidentally, the expansion tank attached to the radiator is also known for its dramatic failure mode (think explosion) so it should be replaced at the same time as the radiator.
You can extend the life of all cooling system components as well as the engine block by flushing coolant every two years as BMW recommends. Doing a partial flush every year would be even better. Note that I've never seen the temperature gauge on this car go beyond the vertical (12 o'clock position), so if you ever do see that you are advised to IMMEDIATELY pull off the road, turn off the engine, and call a flatbed. If you don't, you'll do damage to the engine that will make any cooling system overhaul look downright cheap.
If you do a complete cooling system overhaul at a dealer expect to spend $1600 in parts and labor. The same rules regarding indy labor apply here, but the parts are a significant part of the expense. If you choose to DIY, figure around $500 for parts.
Engine Oil Changes
Engine oil changes should be done every 4500 miles, which is half the interval recommended by the service indicator lights. I use BMW 5W-30 synthetic primarily because it dramatically improves starting performance in the winter months. I don't bother switching to a thicker oil in the summer months because this is one less thing to worry about and my engine doesn't make any inappropriate noises that would indicate the need for a thicker oil.
Note that BMW 5W-30 meets the LL98 standard required for the M52 engine. 5W-30 is a bit of a misnomer as oil analysis has proven this oil to be close to the high viscosity limit for a 30 weight oil. In other words, it's closer in performance to a 5W-40 oil. Use of 5W-30 is recommended by BMW to improve fuel economy. Older engines, however, may benefit from the use of higher viscosity oils like BMW's own 15W-50, particularly in the summer. If you hear valve tapping / ticking coming from an older engine for several minutes following start, try an oil change and a few sustained revs past 4000 RPM before writing it off as needing valve / head work. By the way, Mobil 1 5W-30 does NOT meet the LL98 specification and is in fact too thin for use in the M52. Mobil 0W-40 is approved, however.
Dealer costs for an oil service can easily cost $200 or more. Oil services are, fortunately, easily within the reach of DIY, in which case the parts are usually $50.
Cost Analysis
I conveniently define the total cost of ownership (TCO) to include all expenses necessary to purchase and maintain the vehicle in "like new" condition. I specifically exclude insurance, loan servicing, fuel and body work to repair damage from crashes or other "random acts" so that the numbers may be more easily compared to other contexts. Using this criteria, I've found my total cost of ownership for the 1998 E36 BMW to be $73000 over 12 years, or about $6100 / year. Not cheap by any standard, but not out of line with other vehicles in its class either.
Looking at the maintenance cost graph, take note that the low maintenance
cost in 2001 occurred because I drove a second car and thus put
very few miles on the BMW. That pretty well demonstrates my observation
that if you don't beat the hell out of the car it won't necessarily
hammer you in maintenance costs.
2002's tab was higher because the car came out of retirement to serve as my daily driver after I sold my second car and I decided to do a bit of preventative maintenance in addition to brakes, tires, etc. I had considered trading the car in 2002 before I did this work, but my finances dictated I stay the course.
Years 2003 and 2004, in spite of a couple surprises, were pretty representative of what it costs to run a BMW as a daily driver to the tune of 20K+ miles a year. The average seems to be around $2500-3000/yr. Keep in mind that this with full maintenance including costly inspections performed by the dealer. If you use an indy technician or negate inspections you could probably realize better numbers.
In 2005, I replaced some big-ticket items including what I hope to be "once in a lifetime" items like the transmission ($3700) and A/C condenser ($800). On the more routine side of things, I had to do tires as well ($800). If I hadn't needed to replace the transmission, I could point out that maintenance costs were actually down slightly this year, following the trend started in 2002.
Unfortunately, 2005 was not the statistical aberration I hoped it would be. You don't need to have a doctorate in math or finance to figure out that 2006's maintenance tab of $7200 is a lot of money to spend on a car worth about the same amount on the open market but it's not exactly fair to take that number at face value. This year was harder than usual to quantify for several reasons:
- I invested about $1600 in tools to allow me to do my own maintenance. Tools are paid for up front, but pay for themselves in years to come in reduced labor charges and are applicable to both vehicles. It would be more appropriate to amortize the cost of the tools over the next 3-4 years and somehow split the cost between my vehicles, but I'm only interested in the here and now of what things cost me.
- I conservatively saved about $2000 in labor doing my own work (which is why I can justify including the cost of tools in this year's expenses). If I bothered to include stuff like detailing and the parts discounts I get by buying from alternative sources, the savings are MUCH higher, but I figured I'd be as realistic as possible.
- I spent another $1000 or so on items that were strictly cosmetic.
If I massage the data accordingly, the true cost for 2006 came to no more than $6000, which is about what I spent in the prior year.
In 2007 total costs dropped to a more modest $4100. Of this amount, more than $2000 could be considered discretionary or cosmetic (a steering wheel and airbag upgrade alone amounted to $1100), and $500 was attributed to tools, mostly for work I expect to do in the coming year to further isolate myself from the dealer technicians and their ever increasing labor costs. The eye opener of 2007 is that I saved $600 sourcing parts and $2600 turning wrenches myself, which produced a DIY dividend of $3200.
In 2008 I realized savings of over $600 in parts and a whopping $1900 in labor, for a total DIY dividend of $2500. Had I not worked on the car myself total costs this year would have matched last year ($4100). Instead, I'm $2500 richer and more confident in my DIY skills. Interestingly, I managed to achieve this despite some changes in my life that have made DIY work on the car a greater logistical challenge. My hope is to remedy this as soon as real estate prices return to earth. Needless to say, there is a fully equipped shop (including a lift) in my future. And it won't come soon enough given the local dealer's labor rate is now an astounding $120/hr.
2009 brought a need to spend just over $2500 on new catalytic converters and another $2500 split between tires, a HVAC blower motor, as well as some preventative maintenance. This reversed the trend of decreasing maintenance expenses started in 2006, but I did manage to produce another $2500 DIY dividend, again involving roughly $2000 in labor savings and $500 on parts. The big ticket item for 2010 will likely be a complete suspension overhaul and even without the few preventative maintenance tasks I have scheduled I expect the totals this year to match those of 2009.
The average annual maintenance cost over the twelve year service history is a mere $2880, but the average over the most recent five years is $4675. In my opinion the latter figure realistically reflects the cost to maintain an old BMW because the first four years of free scheduled maintenance skew the numbers.
Summary
If, after reading all of this, you're still wondering whether you should take the plunge and buy a BMW, let's just say you have to be able to justify it on several levels, not all of which are logical and rational. In that way it's a lot like getting married and having a family. :-)
If I had to do this all over again, there are a few things I'd do differently:
- Keep a second car around so I can more effectively regulate the mileage I put on the BMW in order to extend its warranty to the calendar limit. It's true that most maintenance costs are directly related to mileage so this might not buy me much, but its nice to have the umbrella warranty for as long as possible.
- Ignore BMW propaganda in their "War on Maintenance" and change the transmission fluid and filter regularly.
- Do more maintenance myself.
- Replace inspections beyond the free scheduled maintenance period with targeted preventative maintenance. Inspections are costly and don't actually include the cost of anything that needs to be replaced. Provided you know your vehicle and use a technician who specializes in the breed, my experience is the Inspection money is better spent on "real" maintenance.
It's important to note that maintenance costs have risen about 50% since 1998, and there have been years in which I've clocked over 20000 miles on the odometer. If there is any silver lining to the high cost of maintenance, it's that most of it is directly related to mileage, so if you put only half as many miles a year on the car it's safe to say your maintenance costs will be less than I have documented (unless of course you've bought a pre-owned car that has not received regular, proper maintenance, but that's another story).
When I look back at my decision to buy a BMW those many years ago, I had no idea what I was getting myself into -- both from the perspective of maintenance costs and how owning a BMW would fundamentally alter my expectations for what a car can and should be. Therefore, it should come as no surprise that in spite of the high costs of ownership, I have no immediate plans to sell the car.