Doesn't sound like a bad deal at all. E34s are pretty easy to fix & maintain. You might check to see if he has the records on the car. When the 530 & 540s came out they had the nickasil problem w/engines. (US fuels have sulfur addititives that were eating cylinder walls) BMW had a recall and supposedly fix the problem under warranty. They actually extended the engine warranty to 100,000 miles for these engines. If he doesn't have the records take the VIN # to any BMW dealer and have them run a history on it and make sure it's clear.