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The particular model you're considering buying is reputed to be very reliable. I haven't yet owned an E34 (the generation you're buying), but I have owned a BMW (an '86 528e, of the E28 generation). That car had around 255,000 miles on it when I bought it, and I drove it another 40,000 before selling it. I gave all my records to the new owner, but over 2 yrs./40K miles, the car cost maybe $2,000 in repairs and maintenance--that's less than $100/month, or $50 every 1,000 miles). I'd guess an E34 5-Series with much lower miles would be significantly cheaper to maintain than my E28 was. PARTS are expensive, but most BMW's, esp. 3/5-Series are rather easy to work on, and the 2.5L engine in the '93 525i is shared with all 6-cylinder 3-Series of the same era, so parts ought to be really common and mechanical knowledge plentiful. Although you're going to have to use premium, fuel efficiency is another benefit of the 2.5L 5-Series--figure 22-23 mpg. avg.
After I sold my BMW, I bought a '90 Acura Legend w/150K, anticipating a reputedly reliable Japanese car. It's never left me stranded, but parts are MORE EXPENSIVE than BMW's, and overall the car has cost me a lot more than my 528e did. As a matter of fact, I'm selling it this spring and will probably get the exact same type of car you're considering--a 525i or 535i newer than 1992 with less than 125K miles.
I'd HIGHLY recommend getting a used BMW--they are incredibly well-engineered, distinctively-styled, safe even by today's standards, and more fun to drive than anything this side of a sports car. The 525i should be relatively economical to own too, and with 120K miles, you'll be able to enjoy a lot of trouble-free driving.
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