for a new E36 owner (and any old ones) this might be of some use
Model History
May 1991: Launch of E36 318i, 320i and 325i Sedans. Longer, wider and higher than previous E30 with multi-link IRS on all models. Base 318i has earlier belt-driven 83kW single overhead cam (SOHC) M40 four-cylinder engine and drum rear brakes. Both 320i (110kW) and 325i (141kW) have rear disc brakes and require Premium unleaded (PULP) for their chain-driven twin overhead cam (DOHC) 24-valve M50 six-cylinder engines. Five-speed manual, four-speed auto (318i), five-speed auto (320i,325i). ABS standard on 325i only.
April 1992: Launch of E36 318is and 325i Coupes. Carryover 318is two-door sedan from previous series discontinued. New 318is Coupe features 103kW belt-driven DOHC 16-valve M42 four, disc brakes all round and ABS. ABS now standard on all models. Driver airbag optional on 318i and 320i, standard on 325i.
June 1993: Auto 318is Coupe released.
November 1993: Driver airbag standard on all models. Body colour bumpers and leather now standard on 320i and 325i.
February 1994: Base 318i gains new 85kW chain-driven SOHC M43 engine.
May 1994: Passenger airbag optional on all models.
October 1994: Twin airbags now standard on all 3 series models. Electric windows standard on 318i. Sports option packs which include 16-inch alloys and certain M-Technic bits are offered on 318is and 325i Coupes.
February 1995: Launch of 316i Compact hatch. Features 75kW 1.6 version of the chain- driven SOHC M43 engine and basic E30 semi-trailing arm rear suspension. Special 318i Signature Edition marks the first South African-built entry models.
March 1995: Security upgrade with EWSII immobiliser, free-wheeling locks and dead lock function on all models.
June 1995: Launch of 328i. It replaces 325i with lighter, more frugal alloy block 2.8-litre M52 engine with VANOS variable valve timing, DOHC, 142kW and big torque increase. 10-spoke alloys and onboard computer standard on 328i.
November 1995: Climate control fitted to all models except 316i Compact.
January 1996: Launch of 323i. It replaces 320i with a smaller 2.5-litre 125kW version of the 328i's M52 in-line six-cylinder engine.
April 1996: All 318i models gain body coloured bumpers and mirrors. New 318i Limited adds leather trim, walnut cabin highlights and alloys.
May 1996: Launch of 318ti and 318ti Sport Compact. Both share Z3's 1.9 chain-driven DOHC M44 103kW engine. The 316i Hatch now has front electric windows, body coloured bumpers and mirrors.
June 1996: The 318is two-door Coupe is given the Z3's M44 1.9 engine.
January 1997: Facelift with new grille and launch of new 318is Sedan. The 328i Sedan/Coupe range is replaced by new 328i Executive and Highline in both body styles with extra equipment. The 318i now has remote central locking standard, the 323i gets leather door trim and extra equipment, the 318is Coupe is upgraded with sport seats and body coloured door handles and mirrors. A new 318is sedan sourced from South Africa is launched with the 318is Coupe's M44 engine and equipment.
July 1997: The 318i Limited is replaced by the South African built 318i Executive with leather trim, rear head restraints, wood highlights for dash and gear lever.
January 1998: 316i, 318ti and 318ti Sport gain extra features including larger fuel tank, remote locking and stability and traction control. Contour extra value pack adds more features to 316i and 318ti Compact. A new 318is Sport Coupe comes with 16-inch alloys, M steering wheel, body kit and other extras. Both 323i models gain ventilated rear disc brakes. Both 328i Coupe models get front side airbags.
July 1998: Most models gain front side airbags as standard including the Compact.
August 1998: Next generation E46 announced but E36 Coupe models continue into 1999, E36 Compact models into 2001.
Note: E36 Convertible and M3 models followed separate evolutions.
Checkpoints
Engine
>> Six-cylinder water pumps are a failure point and need immediate attention if they leak.
>> Early six-cylinder engines suffered from cracked plastic thermostat housings. If owner missed warning signs and engine overheated, a failed head gasket can reveal engine block stud problems as the area around the stud can crack and lose tension. A compression test is therefore a must on these models.
>> Examples that have done only short trips with skipped oil changes are also causing catastrophic engine failure as the oil ways sludge-up and starve the engine of oil. Any engine that takes more than a split second to reach full oil pressure after a cold start needs to be checked out. Rattly hydraulic lifters are also an important early warning. All BMW engines need high quality engine oil that meets minimum BMW requirements.
>> Check for the usual cooling system and head gasket deterioration if the coolant history is dodgy. Coolant must meet BMW specifications.
>> Make sure that maintenance records have covered time requirements as well as distance as overdue coolant and hydraulic fluid changes can wreak havoc in the extra aluminium componentry compared to everyday cars.
>> Early fours must have their timing belts changed by the factory schedule or risk serious damage. Engine seals and other parts may need replacement at the same time.
>> Underbonnet heat is now hardening plastics and seals on early cars for cracked or split hoses and plastics and generating leaky seals and gaskets. Drivebelts and radiators are also reaching replacement age.
Running Gear
>> There should be no major transmission problems except for wear and tear and lack of servicing.
>> Rubber tail shaft couplings, rear wheel bearings and seals are routine replacement items.
>> Dampers in early models were already soft and can now be tired.
>> Check for expensive master cylinder and 318i rear wheel cylinder failure if fluid changes are not up to date.
>> Brake discs are a routine replacement item up to $100 each for genuine parts or half that for aftermarket bits but watch the quality.
>> Tyres should meet the minimum legal requirements on the tyre placard.
>> Check the rubber boots on all suspension and driveline parts for leaks and splits.
>> Early examples are reaching the point where steering and key front and rear suspension joints and bushes need replacement. This wear can be accelerated when oversize wheels and tyres are fitted.
>> On cars with modified suspension, check tyre wear patterns carefully. Watch out for cars that don't track straight on a flat surface.
>> Check for underbody damage including cracked alloy suspension components and engine and transmission casings especially if it has run over a kerb or hit something underneath.
>> Check all alloy wheels for cracks and kerb-gouging.
Interior
>> Electronic sensor failure for the airbags and seat belts can be expensive so don't ignore the dash warning lights.
>> All electronics and accessories need to be carefully checked.
>> The sunroof's runners and electrics can give trouble. If its drain tubes inside the A-pillars are blocked, this feeds water into the firewall where it drowns the engine computer.
>> The door trim clips can pull out of the trim and can be fiddly to replace. A factory floor mat that is too short can cause a hole in the heelpad under the driver's foot which is expensive and fiddly to repair.
>> Dash and seats do not deteriorate like the previous E30 but check for cracks and trim wear anyway. Some cloth trim patterns for this series are already unavailable and wear in one seat may require a total retrim in an alternative fabric.
Exterior
>> Paint quality is good and most dull cars can be rejuvenated.
>> BMW panel gaps and paint consistency are usually outstanding so anything that doesn't look perfect, usually isn't. Cut and shuts which patch together several wrecks were common when early values were high.
>> The grey plastic sills, mirrors and bumpers on early cars are often colour-coded by owners and need to be checked for colour match and paint adhesion.
>> The rubber corner trim on the front and rear screens perishes easily but it is a cosmetic item and shouldn't cause leaks if the screen's bonding is still intact.