Thinking of buying an older BMW, 325, 525

I recently went to look at a 1990 325ix which turned out to be a complete pile and way more work than I wanted to put into a car but ever since I've really been trying to find an older late 80s-early 90s 325 or 525. I like the idea of the awd 325ix but I know nothing of their drivetrain reliability. I came across a 91 525i that seems to be in good shape with 110,000 miles however I'm told the trans light comes on when it's cold then goes out after it warms up. Says it drives fine otherwise. I was leaning more torwards an automatic simply because I have only owned manuals and I'm just tired of shifting all the time. Should I shy away from the autos? Especially one that shows a light when cold? I do like the fact the 91 has a timing chain rather than a belt however...

Can you afford a transmission rebuild after buying the car? The M50 525i motor with the timing chain is better. The M30 in the 535i is rock solid but the gas mileage isn't very good.

I recently saw a very clean 1990 535i near where I live, but the asking price was £3000.

I'm only looking at the 2.5 that's why I've stuck with the 525 and 325. Does a trans light at cold usually indicate a trans on the way out or more likely an electrical or sensor issue?

I don't know. With a 24 year old car, you should be prepared for the worst.

Someone on the e30 or e34 forum might be able to help.