My E34 was by far the most trouble-free vehicle I have ever owned.
ALL E34 engine platforms are great, as was my M50 engine...NO issues ever!!!
In fact, I have just sold my 1992 E34 5-Speed Manual Transmission and it had 247,000 miles without the slightest hint of a problem!!! Shelly BMW in Buena Park, California completed a compression test and the results were amazing.
E34 5-Series vehicles are ideal in every way, and are well-known for their solid construction.
Honestly, If I had an opportunity to purchase a 1995 540 E34, I would jump at the chance. It is the essential BMW Sports Sedan!!! What's the mileage?