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BMW DID replace the "problem" engines some years ago but the recall also ended some years ago. Unlike Volvo's history with the 960 they recalled all the cars that "could" have been involved and replaced the V8 motors gratis. They no longer do so. If you've looked under the hood of a V8 BMW you REALLY don't want to own one on these things out of warranty. The E39 540i has worm-and-roller steering rather than the 525-528-530's rack-and-pinion because the rack won't fit with the V8 stuffed in there! The 6-speeds also have an appetite for devouring clutches, apparently they're "under clutched" for the power of the V8. (That, or BMW drivers don't know how to drive. Draw your own conclusions.) Also reflecting the mechanical nightmare that these V8 cars can be, look at the depreciation curve of the 7-Series. They're a real bargain on the used car lot until something breaks.
I'd suggest sticking to the 525-528-530 "classic" inline 6, at least you can see the motor!
The 525-528-530i BMW is NOT as easy to maintain as the Volvo 740/940 from all I've heard, but the BMW 6 has a timing CHAIN and the engine breaks a lot less frequently than the Volvo 6.
-Punxsutawney Phil
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