I've seen plenty of 535i's for less than 2k. Found mine for 750. Had a couple of corroded electrical connections and the pedal bracket cracked. Fixed the electrics for free. Paint sux, dash is cracked and the pedal bracket is cracked (pita to fix, but cheap). I'm averaging about 23-24 mpg, but I use the rev range. I would suspect an e28 with the m20 engine would get a little better mileage or find a 524td.
edited - btw it's done corporate duty and it's mother-in-law approved - the rest of the fleet - not so much

