Max, Yes, I'm familiar with the Nikasil problem. The car I'm looking at had a complete engine replacement done at 60k miles. In fact it is now a 4.4 liter instead of the original 4.0 liter. That's great auction info! Thanks. Where did you get it? Is it publicly available? Were these all 1995 BMW 540i's? I'd like to reference your source in negotiating a better price.
All 95 540i's. Data not publicly available, neighbor is a dealer and I get access. Also, www.cars.com for more or less retail ask prices for specific areas or nationwide. And to compare your deal with a dealer's offer: Is your friend offering finance? Warranty? Service with rental car, etc.? Does he have an overhead to pay or commission to a salesman, etc.? If a seller wants what a dealer is getting, ask why should he get as much without any liability or expenses and offering no warranty.
I had the same problem with the head gasket on my 4 runner. It blew again recently after I had it replace 20,000 miles ago (2nd time) I was told by one mechanic that the block was now cracked and it would be over $7000 to repair the engine. Great......... till my towtruck driver told me of a recall. I called Toyota and sure enough they hadn't worked on my engine when i gave them the VIN. $9000 worth of repairs (new engine/block) all under warranty done by the dealership. and Toyota is reimbursing me for my $2000 repair 20,000 miles ago. If there was a recall as it states above. Run some searchs on the web for the v8 recall. There are stories of what the dealership will do. Maybe if they haven't done the work........you might have a gem as you could get the car.........than have the recall performed.