I bought the best and worst BMW M cars at the same time.

"Freddy "Tavarish" Hernandez" (apidaonline)
02/19/2014 at 01:00 • Filed to: None

I bought these a few weeks apart, and it's pretty crazy how varied the reactions are. Here are the specs for both:

2000 BMW M5 (E39)

6spd manual, Dinan Exhaust, Dinan ECU, AC Schnitzer Wheels. About 410 crank hp. Sounds completely bonkers.

1998 BMW M3 (E36)

5spd manual, 4 door, UUC cat-back exhaust, Yellow Coilovers, about 260crank hp.

When I tell people I have an E39, they say "that's the last REAL M5, no electronics nonsense, there was way more driver feel, blah blah" and then when I mention I have an E36 M3, they're the first to tell me that it's only an upgraded 328i, and that the real version was only available in Europe. It's weird that these cars are 2 years apart and so polarizing. My question is: Why does the E36 get so much hate and the E39 so much praise? Even Regular Car Reviews gave the E36 a pretty brutal review, even though I think theirs was just broken. I personally think an E60 is a better M5, and the E36 is an amazing bargain for the money and loads more reliable than the E39. It's more practical and more understated, which I can really appreciate as a maturing car guy.

I love both, and will feature them on my Art of the Flip series on my site. I just wanted to give you guys a teaser on what I'm doing while I write my next article.

If you're interested in seeing what exactly I do to cars, check out my articles:

RX7 FD Barn Find:

http://apidaonline.com/index.php/arti…

Reviving a Honda Prelude Si:

http://apidaonline.com/index.php/arti…

Selling the world's crappiest Civic:

http://apidaonline.com/index.php/arti…

Thanks!

DISCUSSION (52)

ddavidn > Freddy "Tavarish" Hernandez
02/19/2014 at 01:02

E36 M3: Practical, understated, lots of tuning potential, not horrible on gas. If mine wasn't falling apart all over, it would be sorta perfect.

That silver one is nice though.

Freddy "Tavarish" Hernandez > ddavidn
02/19/2014 at 01:03

I agree. The M5 is actually pretty frugal on gas. I managed 28mpg, and I'm sure I could get 30 out of it. That tall gearing really works wonders.

THOMAS5 > Freddy "Tavarish" Hernandez
02/19/2014 at 01:05

I don't care if the European one was better. The US spec was still a blast to drive and that's all that matters. If it wasn't for the Euro spec the American one would get all sorts of love

ddavidn > Freddy "Tavarish" Hernandez
02/19/2014 at 01:05

That's pretty great. I wish I had an M5, either E39 or E28.

Freddy "Tavarish" Hernandez > THOMAS5
02/19/2014 at 01:06

Exactly.

offroadkarter > Freddy "Tavarish" Hernandez
02/19/2014 at 01:06

The E39 is the benchmark for performance sedans, one of my friends just picked up a black 2000.

The E36 is the worst gen of the M3's. Why? Well...

The E30 M3 is a classic, clean examples of this car are going way up in value.

The E46 M3 is still new enough that its worth good money. Its also a very strong performer even in this day.

The E36 M3 is slotted in the middle, lower HP, didn't it have the 188mm medium diff? These cars are used for two things. Track whores, and high school rides.

Lets Just Drive > Freddy "Tavarish" Hernandez
02/19/2014 at 01:07

Can I just say, "Wow"?

After waiting for like, ever, for your links to load I read about what you do and had a huge, jealous boner sticking out of my pants. I realize that not everyone can do what you do, but the fact that you do it makes me rethink what I do, dearly. Alas, it's not my reality and your mechanical aptitude sets you apart from the likes of me. Just the same, I wish you were local or a neighbor because I'd be your BFF, no backsies.

Freddy "Tavarish" Hernandez > Lets Just Drive
02/19/2014 at 01:13

Thanks! I'm a huge top gear fan, and as I was re-watching an episode for the 10th time, I really thought to myself that I'd like to get paid to drive cool cars. This is a way I can do it, and write about it so others can share in my experiences. It's not hard, and anyone can do it if they really want to. All you need is a little bit of capital and a confidence in solving problems. My mechanical aptitude is limited to the stuff I've done by myself with the cars I've owned. I've made plenty of mistakes. I did my first major modification (5spd swap in a Nissan Maxima) with a $30 set of tools I got from Pep Boys and a rusty jack. If there's a will, there's a way. By the way, I'm in NJ. We can be pen pals. :)

Lets Just Drive > Freddy "Tavarish" Hernandez
02/19/2014 at 01:15

Look me up on facebook and twitter if you use those things.

mkolabin@gmail.com

@Lets_Just_Drive

You're a real inspiration. And, if you don't mind, how old are you? I'm not exactly an old man, but the idea of making major live renovations in my 30's is... daunting.

Freddy "Tavarish" Hernandez > offroadkarter
02/19/2014 at 01:16

Mark my words, the E36 M3 will be a future classic. I'm pretty sure they're at the bottom of their depreciation cycle and will soon start to appreciate when numbers dwindle and people will realize that they're pretty awesome cars when taken care of.

LOL at high school rides though. :)

Freddy "Tavarish" Hernandez > Lets Just Drive
02/19/2014 at 01:19

I'm 27. You can find me on facebook at facebook.com/usualrhetoric . I don't have a twitter, but feel free to email me at apidaonline@gmail.com. I'm always looking for interesting opinions on cars that I can feature on my site, or just to shoot the shit with like minded car people in general. Thanks!

offroadkarter > Freddy "Tavarish" Hernandez
02/19/2014 at 01:19

If they ever reach 20 grand resale value, I promise you I will eat my own socks

Also I dont mean for any of this to be a stab at your purchase, I'm just calling it as I see it. I know the E36 is supposed to be a great chassis.

This is all coming from a fellow bmw owner - E23, at least e36's are still around in general. I've seen 5 e23's in person, 1 in the junkyard and 1 I own.

Manuél Ferrari > Freddy "Tavarish" Hernandez
02/19/2014 at 01:21

Wow! 28 MPG! That's nuts for V8 power!!

My E90 M3 can't get anywhere near 28 MPG. Unless I'm coasting downhill :)

Freddy "Tavarish" Hernandez > offroadkarter
02/19/2014 at 01:21

There are a few pristine examples at 18k already, but I'm not sure anyone is buying at that price. I'm not sure 20k is possible without it being an inflationary bubble like the Shelby Mustangs of a few years back. I think they will get to 15k within the next 5-7 years though.

Either way, I think your socks are safe,

offroadkarter > Freddy "Tavarish" Hernandez
02/19/2014 at 01:22

good, I like my socks

Lets Just Drive > Freddy "Tavarish" Hernandez
02/19/2014 at 01:23

Done and done.

Gotta be headed off for a while now, so I'll catch up with you... later? Haha. Great "meeting" you and I look forward to getting to know you etc etc.

Manuél Ferrari > THOMAS5
02/19/2014 at 01:29

Agree. The E36 M3 is very fun to drive. Who cares if it's not super fast by today's standards? The E36 chassis still had some of that small-car feel that the E30 chassis had.

Freddy "Tavarish" Hernandez > Lets Just Drive
02/19/2014 at 01:29

Likewise!

Freddy "Tavarish" Hernandez > ddavidn
02/19/2014 at 01:30

No E34 love?

toddbarker - drives a death car > Freddy "Tavarish" Hernandez
02/19/2014 at 01:39

Woah, definitely bookmarking your site! If I could choose any way to spend my time, it would be doing something similar. I just love the idea of searching out a good buy, enjoying and improving it for a time, then selling it on for a profit. Once upon a time I had a different vehicle every other month, I sometimes yearn for that driving variety.

Major kudos for doing and documenting what you do good sir.

ddavidn > Freddy "Tavarish" Hernandez
02/19/2014 at 01:40

Well... yes... See, I like all the M5s, but the range from E28-E39 are my favorites. The only thing about the E34 is the rear end isn't very attractive to me. The front is sexy, though.

Freddy "Tavarish" Hernandez > toddbarker - drives a death car
02/19/2014 at 01:47

Thanks! Should I make an article outlining how one can get started driving interesting cars for profit?

toddbarker - drives a death car > Freddy "Tavarish" Hernandez
02/19/2014 at 02:03

That would be a wonderful bit of jalop-infromation, I'm sure I'm not the only one that has a desire to do such a thing. Unfortunately for me, I really don't have the means to take on such projects... At the present time anyway.

Squid > Freddy "Tavarish" Hernandez
02/19/2014 at 02:52

I've always held the e39 M5 in high regard. I was contemplating on finding an e39 non ///M when I was looking for a car last year but decided that I couldn't afford the upkeep on one, plus there weren't too many 3 pedal cars for sale and when they came up they didn't last long.

I read your FD story the other night and I was pleasantly surprised to find out you didn't destroy it or do anything silly to it as they commonly fall victim to. Keep up the good work.

Freddy "Tavarish" Hernandez > Squid
02/19/2014 at 02:55

Thanks!

If you can find a 540i 6spd MSport, you have 3/4 of an M5 at half the price, which is a pretty awesome bargain because M5s are dirt cheap anyway. The upkeep isn't bad on a 540, and the engine will run forever as long as you don't have one with Alusil cylinder liners.

Freddy "Tavarish" Hernandez > toddbarker - drives a death car
02/19/2014 at 03:01

In that case, I'll get right on that. :)

Sinanigans > Freddy "Tavarish" Hernandez
02/19/2014 at 08:02

I still think the E39 M5 is the best. The E60 is nice, and the engine is ridonculous, but I still favor the E39. And, while the E36 is overshadowed by the other M3's its still a sweet ass car!

theuserformerlyknownasaluminumfoil > Freddy "Tavarish" Hernandez
02/19/2014 at 08:09

I never knew it was that "sippy". Dang. Makes the STi look like a Hummer H1 for fuel economy.

Inflame333 > Freddy "Tavarish" Hernandez
02/19/2014 at 08:31

E36, E39 and E46 owner here, though not all at the same time.

E39 - Epic DD. Mine had a custom 3" exhaust, dual AFE intakes, power chip tune, BC coilovers, etc, etc... It was insane to DD this car. It had every bit of power and torque below 2,000 RPM so I could lug it around no problem getting 20mpg CITY. Then, when it came time to unleash the ponies, the smile it put on my and my passengers faces alone was enough to justify the purchase price. It was comfortable, reliable, great handling... just a dream. The balance of the car was actually extremely good for its weight. When it would kick sideways, it was one of the most controllable cars I've driven (only car better sideways was the E46). I ended up selling the car due to receiving an offer I couldn't refuse.

E46 - Scored this car in Richmond, VA. Drove it back home to Detroit. This is the first car I ended up doing a track day in and I am thankful to this day that I did. The power/weight and the deliver of power was PERFECT. The car would NOT light them up full throttle but when it would start to slip, it was the perfect amount of slip (I know I use perfect a lot, but it was perfect okay). The compromise of comfort to performance was... PERFECT! lol Just hear me out! All I had done was H&R Lowering springs, stock brake pads w/ dot 4 ate blue fluid. I was running great times at the tracks (have years of auto-x experience that sort of helped). The E46 really taught me how to balance a car in a turn, from the brake point, to turn-in, to late apexing and powering out. I could full throttle right out of the hole and not worry about the ass passing me. I just loved that car.

E36 - Since I was hooked on track racing, I sold the expensive E46 and scored an E36. This car is a total piece of shit. It looks OKAY at best but the interior, the power are just shit. It needs the 100hp from Europe to stay interesting. Handling, I can't comment on just yet as I've been building the car over the winter, though I expect it to be better with the Vorshlag camber plates and AST coilovers. I hope that with all the weight shed, it'll wake this car up.

davesaddiction @ opposite-lock.com > Freddy "Tavarish" Hernandez
02/19/2014 at 08:59

Incredible work on that RX-7!

davesaddiction @ opposite-lock.com > Freddy "Tavarish" Hernandez
02/19/2014 at 09:00

Yes.

Freddy "Tavarish" Hernandez > davesaddiction @ opposite-lock.com
02/19/2014 at 10:29

Thank you!

davesaddiction @ opposite-lock.com > Freddy "Tavarish" Hernandez
02/19/2014 at 10:36

Welcome - please keep posting the links to your projects here on OPPO.

Freddy "Tavarish" Hernandez > davesaddiction @ opposite-lock.com
02/19/2014 at 10:39

I sure will!

davesaddiction @ opposite-lock.com > Freddy "Tavarish" Hernandez
02/19/2014 at 10:41

Any recommendations on the best way to recondition soft leather seats that have some of the dye worn away on the bolster and some other areas?

I was considering this: http://www.swissvax.us/product/SE1043…

Freddy "Tavarish" Hernandez > davesaddiction @ opposite-lock.com
02/19/2014 at 10:48

I'd recommend leatherique treatment. It's pretty permanent and it's an involved process. If you want to save a bit of money and look good, SEM dye and a good leather conditioner would also work.

davesaddiction @ opposite-lock.com > Freddy "Tavarish" Hernandez
02/19/2014 at 10:54

Thanks - I've heard good things about Leatherique.

Inflame333 > THOMAS5
02/19/2014 at 11:22

Wrong, the US E36 wasn't even intended to be made. If it wasn't for the BMWCCA begging BMW to bring an E36 M, there wouldn't be one here today.

" How did the U.S.-spec version of the E36 M3 come about?
When the E36 M3 made its European debut in 1992 there were no plans to produce a North American version. Sales of the previous M3, the E30 of 1988-91, had amounted to just under 5,000 units and BMW’s only other North American-spec M car at the time, the E34 M5, was not selling in large enough quantities to justify the addition of another M model in the American market. However, a letter-writing campaign initiated by the BMW Car Club of America sparked such an overwhelming response by the enthusiast BMW community that BMW of North America decided to reconsider"

Jay Lauer > Freddy "Tavarish" Hernandez
02/19/2014 at 11:24

As much as I just enjoyed reading those Art of the Flip articles, you're not really making much profit on these cars.

I'm not trying to be rude by saying this. This is just coming from another car flipper. I'd shoot for more lucrative deals. It's a challenge, especially trying to buy cars that aren't Camrys and Cavaliers, but it can be done.

Freddy "Tavarish" Hernandez > Jay Lauer
02/19/2014 at 11:49

Thanks! The point wasn't to make a ton of money selling cars, it was to chronicle the buying and selling of cars that I find interesting and notable. If I wanted something more lucrative, I would sell used SUVs and subcompact cars to college students that just got their student loan refunds. But those aren't exciting to me and I don't think you'd enjoy reading about me selling a Windstar to a granny.

If you have any insight into what could constitute better articles and better profit margins in this market, I'm all ears.

djmanila > Freddy "Tavarish" Hernandez
02/19/2014 at 12:07

This would make you appreciate the E36, I believe it is one of the underdogs.

http://www.stanceworks.com/2013/11/super-…

Jay Lauer > Freddy "Tavarish" Hernandez
02/19/2014 at 12:10

Well you don't have to give up any 'fun-ness' of car for profits. Obviously, I have no bearing to tell you what to buy, I'm just sharing my two cents. Although, if you want my advice on high-profit fun cars, it's almost always Subaru.

For some reason, they hold their values super well, and there's always some bro that wants to buy one. I made $6k off my last WRX Wagon, and I just bought a Legacy GT that I'm hoping to top that with.

If you're looking for profits, pretty much don't buy BMW. I'm learning that right now.

They're both fun brands to drive, but they're certainly no FD RX-7.

As far as selling granny cars and college student cars, my dad and I do that as well. One word: Saturn. Buying blown up Saturns is so easy.

With all of this said, I do appreciate your articles. I've wanted to right up pieces like this, chronicling car investments and endeavors, but there is always people who will criticize for making money on another man's love of cars.

Jay Lauer > Freddy "Tavarish" Hernandez
02/19/2014 at 12:15

Shit, I forgot this was a BMW article. Apologies for badmouthing BMW prices. With the exception of some M-Cars (E46 M3, E39 M5, M Coupe, etc.) normal BMW prices have really tanked. I mean look up E46 330i prices; they're about $5k-$8k for a really good one. They cost lest than similar year WRX's. Who would've thunk it?

Freddy "Tavarish" Hernandez > Jay Lauer
02/19/2014 at 12:19

Great insight!

The problem with Subaru, at least around here, is that people think they're worth way more than what people are realistically willing to pay. Yes, they hold their value well, but it's hard to find one that isn't either a salvage title/has astronomical miles/automatic/beaten within an inch of its life/rusty.

If you don't mind me asking, from that $6k profit, what was your initial investment?

Freddy "Tavarish" Hernandez > Jay Lauer
02/19/2014 at 12:25

No reason to apologize. Regular non-M cars are a dime a dozen and were likely built in Mexico, no wonder their prices have plummeted. But I'm still curious what your initial investment was on a 6k profit. :)

Jay Lauer > Freddy "Tavarish" Hernandez
02/19/2014 at 12:26

See, and I'm not sure how mechanically adept you are, but I try to find them broken somehow. I appear with quite an incredible advantage: My father own's a mechanic shop. I'm pretty ok myself, but there isn't anything he doesn't know, and I can use his space and tools.

It takes some looking and usually some distance driving time to find them, but every once in a while I get lucky.

The first Subaru was a 04 WRX Wagon. Silver 128k

Car Price: $5000

Peeled off stupid stickers - $Free

Sold the terrible wheels - $400

Bought stockers - $130

Sold the ridiculous Stage 3 Clutch - $200

New Subaru Factory Clutch and Pressure Plate - $370

Sold the most uncomfortable WRX seats ever - $200

Bought used EXTREMELY comfortable 02 WRX seats - $50

Misc (Roof Rack, New Speakers, Nice Double-Din system, rubber mats, etc.) $300-400

Selling Price -$11,000

It might be a bit under $6k, but you get the idea. The previous owner did terrible mods to an OK canvas. I just fixed it and made it a normal car again.

Jay Lauer > Freddy "Tavarish" Hernandez
02/19/2014 at 12:30

Well shit man, I drive an E46 330xi now, I don't want a Mexican car! That's why I didn't buy a VW! All the financial info about the Subaru should be in the last message i just sent.

Freddy "Tavarish" Hernandez > Jay Lauer
02/19/2014 at 13:17

That sounds awesome! I can do all the mechanical work myself or outsource it to a reputable shop if I don't have time. When I do flips, I try to do them with a 2 week maximum deadline from buying to selling. Right now, with the 2 bmws I have, I hope to clear around 10 grand in profit, which isn't bad on a total investment of less than 10 for both cars. I can also replicate it without too much hassle. Subarus in my area are a bit harder to come by and an 04 Wagon with that many miles would never sell for 11k because the market is over saturated with them. I will certainly keep an eye out and i do appreciate the insight. Are you in california or texas by any chance?

Freddy "Tavarish" Hernandez > djmanila
02/20/2014 at 02:46

I definitely agree. It's an amazing chassis and the engine is very capable. It's no sleeper, but it's no slouch either. Awesome link!

Freddy "Tavarish" Hernandez > Sinanigans
02/20/2014 at 02:49

E60 was a mess electrically, but the engine was a monster, a true supercar engine. The M5 V8 in the E39 was also a screamer, but for some reason I'd prefer the E60 with a 6spd manual. I haven't owned an E60 yet, so maybe my tune will change when I get one.

Freddy "Tavarish" Hernandez > Inflame333
02/20/2014 at 02:50

Were yours all M cars?

Inflame333 > Freddy "Tavarish" Hernandez
02/20/2014 at 10:38

Yes. 2001 M5, 2002 M3 and 1995 M3.