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Gray Market Project: 1985 BMW M535I

Here’s a car you don’t see often: a 1985 BMW M535i, basically a precursor to the iconic BMW M5 that would arrive on our shores a short time later. The M535i wasn’t the Motorsports-built legend like the M5 was, but they still have a following among BMW enthusiasts (myself included) who yearn for the forbidden fruit of gray-market models. This M535i is a serious project but many of the rare parts that set this car apart are still accounted for. Find it here on craigslist in Massachusetts and listed for sale by a BMW repair shop with no price listed.

Thanks to Barn Finds reader Roger for the find. The M535i didn’t the unique engine like the M5 did, nor was it assembled on the Motorsports division assembly line. It did come with a unique bodykit, TRX wheels and tires, a limited-slip differential, Motorsports suspension, and a rear spoiler. It also came standard with the three-spoke steering wheel seen here, which was also used on U.S. production vehicles like the 325is. The car appears to be being used as a storage locker at the moment, and no pictures of the sport bucket seats – also part of the M535i package – are included.

The engine was a standard-issue M30, but this being a European market car, it is essentially a higher compression version of the U.S. mill. It’s not particularly exotic – the M30 was the workhorse of many of BMW’s larger sedans in the 1980s – which is why some BMW fans question just how valuable a genuine M535i is. Certainly in the U.S. it’s sought after solely for being a car not sold here with some sporting pretenses, but it will never command the same price tag as a clean-running (or even basketcase-grade) E28 M5.

I’ve actually run into the seller in the past, seeking counsel with my 1987 325is project when I first got my hands on it. The encounter wasn’t that pleasant and I’ve avoided the shop ever since, using German Motors in Providence to have my maintenance needs taken care of. Still, they’ve been around a long time and as such, occasionally stumble upon a special car like this. I would suspect the asking price is still high for what this is, especially with the interior presentation so far from ideal. But if you’re hunting for a classic BMW with loads of exclusivity, the M535i should be at the top of your list.

Comments

  1. Avatar Jim

    They were fun cars.. I had a 79 E12 535 while stationed in Germany.. No injection, prev owner had swapped a pair of weber 2 barrels.

    Like 1
    • Avatar Peter

      Hi also had `81 E12 535 in 1990. With the rubber spoiler on the decklid :- ) Sold it later in 1993 for $1500,- in pristine condition. These are very very hard to find these days

      Like 0
  2. Avatar Classic Steel

    My old boss had a 525 i think that was the numbers of the five liter engine.

    I remembered in early 2000 he took his car to the dealership for maintenance.

    I think he had a tune up, wires, oil change and a headlight for mere $2300 dollars.

    Then recently a person i ride bikes with son had the newer V8 2008 BMW model that needed a water pump. Lets just say he almost crapped his pants when they mentioned the number of grand to repair.

    I an just saying that BMW’s no matter how cool and performance they are not on my list to have…. sure they may run over 250 thousand miles but …add the tune ups and one offs your still paying to much. This is my opinion But i will keep my America muscle but for endurance and price ROI i will run toyota or Honda where i do minimal cheap maintenance and hit 275 to 300 thousand miles without selling the house 😎👍

    Like 5
    • Avatar Skippy

      To each his own. If you wrench your own cars, BMWs are great cars because you can get most parts outside of the BMW network directly from whoever makes it for BMW for MUCH less. Toyota, on the other hand, has a completely closed parts network and the only place you can get Toyota-specific parts is from a dealer. That is why the local, somewhat shady Toyota dealer wanted to charge me $6000 to install a new ABS booster pump on my wifes 2010 Highlander Hybrid. She now drives an X5. I collect classic cars and have 12 BMWs currently, but I also have or have had US, british and italian classics. Some classic cars are fun to be seen in but not that fun to drive. A few a both. BMWs are a blast to drive.

      Like 1
  3. Avatar Djjerme

    As Tempting as this is, being in Massachutes and sitting like it is, I am sure it’s a rust bucket underneath. 85 would have still been early rust protection on these.

    Approach with caution and updated shots.

    Like 3
  4. Avatar Skippy

    The M535i was the European version of the 535iS here in the states and it was equipped exactly the same way except the euro M30 produced about 7 more horsepower (215, which was a lot for the time). They are not particularly rare, although a LOT of people prefer the euro bumpers over the US 5 mph diving boards (I got rear ended by a suburban in one of my E28s years ago and had to replace the bumper with no body damage at all. His newer truck was nearly totalled.) The good news is that most E28 535i parts are still available and the e28 community is huge. Even the rare parts are out there for a price. The really good news is that it is much less expensive to rebuild an M30 that it is to rebuild the S38B35 in an M5. I have 2 E28 M5s now and know this first hand. And e28s are among the most distinctive BMWs out there and you can update them with bluetooth, etc very easily to make them nice, distinctive daily drivers. This ad needs more images and a price before I can tell you if it is a decent deal or not….(The blue dash has no visible cracks, which is huge, but the hood has some rust, which is not a great sign.) I buy project cars like this all the time and put them back on the street, but not without all the info and typically, anyone who lists a car on CL without a price is probably going to be asking too much. Post here if anyone calls and gets a price.

    Like 2
  5. Avatar alan

    I threw one of these away many years ago. It was an M535iA. The body kit factory installed M-Technic and even had jack extensions welded to the floor pan because of the bulky rocker trim. The cars also usually had a set of plastic flares installed which this one appears not to have. Another non-USA feature was the availability of a glass sunroof panel. Because of the kit rarity I kept all the body kit parts but the body.

    Like 0
  6. Avatar Oliver

    How much will you take for it

    Like 0

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