“High technology dedicated to heightening your pulse rate.”
For many years, I saw BMW’s 325e as a rare misstep for BMW in the eighties, a decade where BMW generally could do no wrong.
The e stood for efficiency, and the engine was BMW’s torque-optimized M20B27 2.7 liter/165 ci inline six with Bosch L-Jetronic fuel injection, making 121 bhp and 170 lb-ft of torque with a fairly low 4,700 rpm redline. Mileage by the standards of the day was pretty good: 21 city/28 highway (18/26 by 2025 measures) with the standard five-speed manual transmission. With a 14.5-gallon gas tank, proud new owners of a 325e could expect between 290 and 315 miles of range with a 10% reserve.
0-60 mph with the five-speed manual took between 8.5 and 9 seconds, and the 325e’s top speed was 116 mph—not exactly the kind of numbers one would expect from the “Ultimate Driving Machine.” As Car and Driver wrote, “the 325e is less of a goer than you would imagine.” Despite this, BMW did its best to present the 325e as a legitimate part of its overall product line.
The 325e’s base price was $19,700—about $62,900 in 2025 dollars, which is 15% more than what a 2026 BMW 430i xDrive coupe goes for. Standard exterior and mechanical equipment included tinted glass, bumper-mounted fog lights, halogen headlights, power four-wheel disk brakes, power steering, and 195/60R14 tires (the same size as those on the Isuzu Impulse) on 14-inch wheels. Inside, the 325e came well-equipped: cloth or leatherette manual sport seats, a power sunroof, power windows, power mirrors, power door locks, air conditioning, a three spoke leather sport steering wheel, and a BMW/Alpine four-speaker AM/FM stereo with cassette and power antenna were all included.
Options & Model History
There were relatively few options available for the 325e: a four-speed automatic transmission ($595), leather seats ($790), cruise control ($240), many choices of metallic paint ($420), and a limited slip differential.
In 1986, BMW introduced the 325es variant, which included revised suspension tuning and made the limited slip differential standard. BMW would continue with the 325e and 325es as the top-of-the-line 3 series until 1987, when the 325i and 325is were released with the 2.5 liter/152 ci M20B25 inline 6 featuring a much more sporting 168 bhp. Horsepower for the 325e would climb just a little in 1988, but by 1989 it would be gone, replaced completely in the 3-series model line by the 325i.
The View From 2025
One of the things that strikes me, approximately forty years later, is that I have never heard from a 325e owner who didn’t like their car. We tend to think of our vehicle purchase decisions as valid, but it is rare to see such unanimity. Perhaps I and the automotive press missed something about the appeal of these cars.
The 325e is rarely seen in the Hemmings Motor News classifieds, but examples do show up on eBay Motors and Bring a Trailer. According to Hagerty’s valuation tools, a 1984 325e in #1/Concours condition is $34,200, with a more normal #3/Good condition car going for $14,100.
Make mine Baltic Blue Metallic, please.
Other BMWs I have written about include the 1982 733i sedan, the 1983 633CSi coupe, the 1985 535i sedan, the 1987 L6 coupe, the 1987 M6 coupe, the 1988 750iL sedan, and the 1988 M3 coupe.
Last updated August 2025.
Eighties Cars 
The interesting thing? With the advancements in engine controls into the early 90s, a 328i would get much better highway MPG than this car.
Andy,
Thanks, as always, for the comment. You are absolutely right: better computers and more precise fuel injection would give the 190 bhp 2.8 liter engine in the 1996 328i a 20 city/29 highway estimate.
Hey John, thanks for updating your previous article from 10 years ago. I saw the link on a 325e car on BAT. I own a beautiful 86 325es with orginal paint. I would not compare this car to the plain Jane E you reviewed. I added a Dinan chip which provided an additional 23 HP and now easily relines over 5,000k. A blast to drive and still under appreciated compared to it’s younger cousin, the 325is.
Kevin,
Thank you for your comment.
What has been interesting to me is that, in the nine years since I originally wrote this blog post, I have never had a 325e owner write to me who wasn’t essentially satisfied with their car. Obviously, I (who drove a 1985 325e) and the automotive press missed something.
I’ve also gotten the sense that the 325es was improved in meaningful ways over the original 325e.
I’m going to update this post to note the owner feedback I have received.