truth about building custom cars is that you’re not going to make a profit building and then selling your car. You’re not even going to recoup your cash expenditures, so don’t view this hobby as an investment. There’s no reason to think that the person who buys your car will even think any of your mods are worth keeping. For your own protection, you should view this process as building yourself a unique car that you customized for your own tastes and no one else’s.
Finding a group of like-minded people in your area can help you keep your project going. The Internet is a nice tool for learning and discussion, but folks on the other side of the country can’t help you change the brakes, or give you a ride to pick up your car from the mechanic. A local club is also a good way to gain access to specialty tools. If one member has an engine hoist, then everyone has an engine hoist, and you can spend your budget on a tool that no one else has yet. Treat your club right, and you’ll always have help when you need it.
The last thing to say about having fun and sticking with the project is that you should make sure that the car stays drivable, registered, and insured as much of the time as possible. Nothing kills your enthusiasm for a project car as fast as spending money that just disappears under a tarp in the garage. Keep yourself behind the wheel to keep the rewards of your project coming back to you, and that will keep your enthusiasm going strong.
Although BMW tagged the E36 with a variety of model codes, only a few variations are meaningful on the E36. In the United States, the E36 chassis was offered from model years 1992 through 1999. In that time, there were 4-cylinder models and 6-cylinder models. The 6-cylinder models were by far the most popular.
When it comes to the engines used in these cars, there are substantial differences between the 4- and 6-cylinder models and between engines of different model years. Yet these all fall into a few broad categories for North American cars. Internationally, BMW sold many more sizes and variations of models and engines than were imported to the United States and Canada, and those models are not covered.
In BMW history, 1996 was a watershed year for the E36 family. In this model year, every car in the lineup changed its engine, and many model designations changed as well. This was due, in part, to the change to federally mandated On-Board Diagnostic II (OBD-II) engine management technology.
The M52 engine simply carries “BMW” on the valvecover. You can also tell this engine from an M50 by the bulge for the VANOS system on the intake side.
The main difference between model designations is that the popular 325i was enlarged from a 2.5-liter to a 2.8-liter engine to become the 328i. The 2.5-liter engine was retained, however, as the 323i. This engine is identical to the previous 325i but detuned to 168 hp. This was presumably done to give the 328i a horsepower advantage.
The following sections offer some information on the various models of E36 available in the North American market.
4-Cylinder Cars
Four-cylinder E36 BMWs included the 318i and 318ti sold in the United States and Canada 1992–1998, and the 320i sold in Canada 1993–1995.
It is worth noting that the 318ti hatchback and the Z3 roadster and coupe are substantially different from all other E36-class vehicles in that the chassis and rear suspension are not the same. The rear suspension on these cars is a carry-over from the older E30 BMW line. Therefore, procedures in this book relating to the rear suspension and chassis are not directly applicable to these cars. The front suspension and steering gear are common to all E36 cars.
Maintenance and Repair Schedule: The 80,000-Mile Rule
As the E36 series has aged, mechanics have had the opportunity to notice trends in required repairs. What they have found is that 80,000 to 100,000 miles or about 8 to 10 years of service is a watershed for these cars. A number of items consistently need attention at that interval. Almost all E36 cars are well past that mileage at this date and are now coming up on their second rounds at 160,000 to 180,000 miles, or 16 to 20 years of service.
If you have not yet purchased your E36, keep these items in mind as you compare candidate cars. Ask to see service records for claimed maintenance and repairs. If you already own your E36, consider the accumulated mileage on your car and look over this list for items that you have not yet checked or repaired.
• The cooling system is mainly made of plastic, and the entire system needs to be replaced about every 80,000 miles. Wear symptoms include cracking in the radiator neck, tanks, hoses, thermostat housing, and water pump.
• Engine pulleys, the idler and tensioner especially, must be replaced about every 100,000 miles. While you have that all apart, the oil filter stand O-ring gasket generally needs to be replaced at the same time.
• The stock flywheel is a dual-mass assembly designed for smooth takeoff and shifting. This wears out at roughly 100,000 miles and must be replaced. For performance builds, a solid single-mass flywheel is a good upgrade. Single-mass flywheels are also less expensive than the OEM dual-mass replacement.
• The driveshaft flex disc (also known as the Guibo) and driveshaft center support bearing must be replaced at about 100,000 miles.
• Manual transmission shift bushings must be replaced at about 100,000 miles. This is a good opportunity to upgrade to a short shifter.
• Engine and transmission mounts may be oil-soaked and decayed. Check and replace these as necessary at 80,000 miles.
• The valvecovers for 1996 and later cars are plastic that hardens over time and has a tendency to crack. This creates a vacuum leak that throws off engine tuning and may trigger a check engine light. Valvecover gaskets also harden and require replacement at about 80,000 miles.
• If the cooling system has failed at 80,000 to 100,000 miles and the engine has overheated, check the cylinder head for cracks and leakage. The stock E36 water temperature gauge does not read hot until the engine is very hot and damage to the head is likely to have occurred. Plus, E36 cylinder heads are known for cracking with age, even if overheating has not occurred.
The water pump is just one of many components on the E36 series that must be replaced every 80,000 to 100,000 miles. If you’re shopping for an E36, pay careful attention to the mileage and ask for maintenance records to show that required tasks have been completed.
Looking at the E36 engine bay, you see a lot of plastic. Many of these components become brittle and crack over time and mileage. Specifically, the radiator and cooling system components are a frequent failure
