The following are some of the things you should think about if you are looking to purchase any gray-market car, with specific comments about purchasing an e21 323i.
- I'm in the market for a 323i and would like some help understanding what I would be getting into.
- What are the differences between the US 320i and the 323i (other than engine and transmission)?
- Are suspension parts interchangable?
First, for a quick overview on the car, refer to the road test in Sept 1981 Road & Track. (Note: I tried to get permission from R&T to post that article here on the web, but they refused to authorize it. Sorry.)
Brakes (vented front, rear disc), is the other main area of difference. Also, all euro-models (not just 323i's) originally came with different and better lights and smaller, lighter and better-looking bumpers. Some cars no longer have these lights and bumpers as they may have been modified to meet federal regulations.
- Which is the best year to purchase (I've heard that the 83 320i has better fuel injection than previous years)?
Many of them are. For the 323i, the front has bigger struts, spindles and sway bar, other parts are the same as all other E21 models. The 323i rear is the same as other E21s except for the differences required by the rear disc brakes. Also, all 323i's came with the rear sway bar.
- What are the common failure points on these cars?
No big preference. Some prefer the later ('80 and newer) dash and mirrors, but that's about it.
- How available are parts and how does the expense compare to 320i?
Watch for cracked heads. Never let one overheat. Most anything else is similar to a 320i.
- What are some good resources for parts and information?
I've yet to find a part I needed that wasn't easily available. Some of the odd parts (injection pump, for example) can be expensive, but most are quite reasonable IMHO.
- What are these cars worth? I'm sure mileage and condition have a lot to do with value, but are there some guidelines?
Check the suppliers list on this page for starters. Also look at the links page for other related sites.
- How is insurance cost on these vehicles? I've heard that some insurance companies use 320i rates? What's your experience?
After spending 3 months shopping for a 323i, I believe that a nice one (my definition: solid, rust-free, straight body; decent interior; good mechanicals; most everything works) will cost between $3500 and $5000. For $5000 you should be buying a car that needs nothing to be a reliable driver. Cars that need work or have visible rust will be considerably less, while owners of some modified and/or restored examples may be asking much more, up to $10k or so. (note: As reference, the '81 I purchased in July 97 had 170k, sunroof, A/C, 15" BBS wheels, Bilstein shocks and sport springs, fresh head work, original paint, and servicable interior. I paid $4900.) Of course, there will always be a bargain or two out there, as well as "project" cars for as little as $500. (note: This article was updated in August 2001, and prices are what I felt was reasonable at that time.)
- Any other things I should think about that are unique to purchasing a gray-market car?
State Farm is insuring mine at a little higher than 320i rates, but still quite reasonable. They did require me to do a bit of research before the policy was written, as well as requiring me to provide a copy of the DOT (safety) release and letting them perform a brief inspection. Be up front about it with your insurance people before purchase if possible.
- Lastly, as with any unusual and/or project car, buy the best one you can find/afford. It will be cheaper in the long run.
Yes. Buying a gray-market car requires a little more homework and checking than a US car. You must check all the normal things, but there are some special areas you wouldn't consider when buying a US car. Some people won't even think about buying a gray-market car because of them, but if the model you want is only available through this channel, you just have to make sure you touch all the bases. It's not a problem if you go into it with your eyes open and aware of the differences.
When purchasing any gray-market car, insist on getting copies of the EPA and DOT releases. Your state's DMV may want to see them, and so might your insurance company. Also be aware that many of these cars were imported with an EPA exemption from smog regulations, an exemption that may no longer be recognized by your state authorities. They can be difficult to get past the smog police.
Remember that gray-market cars were all federalized by various people, and in varying degrees. While it would be nice to have one that snuck in with no changes from euro-spec, most will have some changes to meet our requirements. These changes may or may not have been done well, and this should have a bearing on your purchase. The common areas of modification are:
Smog equipment - I've seen everything from no smog gear to full conversion to 325i with Motronic. These cars will generally pass a smog test with the addition of a catalyst, normally installed in place of the center muffler. They should have a fuel neck restricter for unleaded gas in the filler neck, and have some sort of evaporative emissions system, generally a charcoal canister. California may require other additional equipment. If considering a car for use in CA, insist on seeing a referee sticker, or make the seller take it to a referee station for approval before purchase. Because of the varying degrees of modifications, if you live where smog tests are required, make sure you see a fairly current printout, or get it tested before buying it.
Bumpers - Face it, the euro-bumpers are just for looks and to provide a place to mount the license plates. Once again, the things done to the bumpers varies depending on who did it and when. Luckily, most states don't care what bumpers are on the cars now, and in most cases it is fairly straight-forward to convert back to euro-bumpers if they were changed, so this shouldn't give you much concern, except that since everyone prefers the euro-bumpers you might have to pay more to get a car with them, all else being equal.
Lights - Many changes may have been made when federalization was done, and what is required now (or what you can get away with) varies from state to state. For details on this subject, see the pages on lights and euro-differences.
Misc. - Other things to look for and consider: speedometer changedfrom metric to miles; laminated glass; door impact beams; side markers.
Rust - When searching for my car, most of the ones I checked out had rusty rear shock towers, and I'm on the West coast where we don't normally see much rust. Since a large proportion of these cars were imported after 5 or more years use in Europe (so they qualified for the smog exemption), many of the cars you will look at have been exposed to road salt early in their lives. So even cars in the desert South West can be rusty. Rear shock towers and rocker panels are the first places to look.