We have a '95 E320 (the last of the "bank-vault" E-Class cars built), and want to replace it soon. I have an aversion to purchasing new cars, and would rather let someone else take the initial depreciation "hit" for me. Therefore, I am looking seriously at the 2001 530i. It has almost everything I want in a car - rear-wheel drive, plenty of space for four people, a room trunk, and drives like a sports car. It will have to be an automatic version, since my bride refuses to shift her own gears, and she will drive the car on a daily basis. I'll try to find one with both the "sport" and "premium" packages, with around 20K miles on it.

My questions are primarily about what I should look for in the way of problem areas with this car. When we bought our Mercedes, I bought it from a dealer, and included the "StarMark" warranty because of some inherent (and expensive to repair) faults that I knew my car had. M-B ended up paying over $2800 to replace the head gasket, and another $2200 to replace the A/C evaporator coil, both under warranty. I am interested in knowing whether there are similar design flaws with the 530i, and if so, whether I would be better served to go to our local dealer and pay a premium for a warranty, or whether it would make sense to buy from a private party. Any advice from the collective intellect would be very much appreciated.

Incidentally, the only other contender for a replacement for our Mercedes is an Infiniti G35. The local Infiniti dealer has a low-mileage demo which he is willing to part with for about $4500 under sticker. I drove it and absolutely fell in love with it, but am very reluctant to buy any "new" car. A two-year-old 530i is what I would really enjoy, and I look forward to any warnings about the potential pitfalls. Thanks in advance!

David Leedy
Jacksonville, FL

I don't know the "problem areas" of a 2001 530i but I do know that service can be expensive with a BMW but usually less frequent. My father and I do a lot of the work on our BMWs and we never buy parts from the dealership unless we absolutely have to (ie, no one on the internet carries it, which is rare).

My best advice is to make sure the previous owner has the service records and to go through those closely. Also, a pre-purchase inspection is always wise when dealing with an expensive used model. The $100 investment is always worth it. Based on those two things you should get a fair understanding of the cars history and what issues it may have down the road. Happy hunting. There is nothing like driving a BMW, I can attest to that!