Do this project because you WANT to, or don't do it: you're unlikely to make money, and you'd do very well to break even. E34 M5's values are lower than they've ever been, with clean title cars in good shape slipping under 10k if you look hard enough.
I had seriously considered calling the seller to buy the car as a fun driver, but these cars can
define money pit: especially if you're paying someone for the work. I'd check the valve clearances, do a compression and leak down check on the engine: if that checks out, then find out where the oil is leaking from and replace then necessary gaskets. Clean the car up, and enjoy it for what it is: a unique, great sounding driver. If you decide to part it out, you'll easily get your money back but won't make a ton of money for the amount of time it takes.
Restorations of this type are rarely something that make sense on the bottom line!
In response to BigD - I agree with your final definition of rebuild: "You take the engine apart and put it back together to spec." The problem to me is that many people will reseal a motor, throw bearings in it, "maybe" hone it to break the glaze and put new rings in, then call it "rebuilt"...often without measuring and checking anything, or putting new valve guides and seals in, or...
I (and nearly everyone in the hobby I know 'in person') would call that a refresh. Back on topic.
Originally Posted by drenius
Sounds like i have a winter project on my hands! If everything works out i will have my dream beast of a car for spring time. The "rebuild" on the engine is probably a must, seeing as it had like 7 or 8 different owners in its 20 years of service. But what worries me, is the rebuild title of the car.
I am the kind of person who wants to see the bottom line. We all know that this is a toy first, and we have to pay for toys. But would you pay 12k for this toy? To most people it will be a very expensive (20 year old) mode of transportation, and possiably third a collecters item due to the rebuild title.
I want your opinon if this car is going to be worth 11-12k on the market once it is properly fixed up. My opinion is, it might not be.
Dont get me wrong, i want this baby all to myself, but stuff happens and sometimes we need to sell...
$4900 buy price