(Warning long)My good old 98 e38 740il was totaled and i got a good settlement from insurance so after a litte mourning, I just got a loaded 2001 E38 740il (MFG02-01). I bought it at an auction in Louisille, KY In December 2010.
When i got the car it had no issues at first on the way home i noticed the check coolant level warning, and then loss of heat. Pulled over allowed the car to cool of, and then topped up the coolant and started driving, the SES light came on, begun flashing,my check coolant also came on, and now the check brake light came on. I still had a 100 miles to go and stopped to check car seemed fine.
Got home , and had no heat, decided to take the car to my trusted Indie for a tune up. He let his intern work on the car for me and they told me it was a misfire and they replaced the spark plugs. But also replaced my oil with regular not synthetic. it was only driven for a day, then they replaced the oil. The car then proceeded to burn thru 2 starters, blew a radiator, broke my bowden cable, and grills and is now overheating. Luckily the shop assumed the cost of the radiator, oil change,spark plugs etc. They also installed the OSV valve cover free, and i towed my car away from them pissed since i didn't want to drive it.
I have since replaced the spark plugs again, did the valve cover gaskets, uninstalled and checked the OSV (replaced the torx with hex). Which fixed the sucking noise at the dipstick. (But my car now seems to be blowing air from the oil cap), Also if i rev the car above 1000 it has a whining noise.
It idles very rough, and is drivable around the block but starts to overheat, and has no heat. Plus now the DSC, Airbag, Brake lights are all on.
I bit the bullet and drove it 3 miles to Autozone but they could not read the OBD either, the guy told me to replace the cigarette lighter fuse and come back. Didn't believe him because my rear lighter worked, but when i got home turns out he was right.
As of now my 2001 silver e38 car just looks really nice in my garage but i cannot drive it. I cannot pull codes from it, all scanners say "cannot link/connect" even after replacing said fuse. Sometimes i start the car and the temp gauge immediately jumps to red? and of course doesn't allow me to see the real OBD temp.
I'm really pissed, and don't know what to do. My wife doesn't think i should spend anymore money on it, i know BMW will charge an arm and a leg to diagnose the car.
I did my due diligence, got a carfax before buying the car. Tested it when i got it. can it be a lemon with 145k on it? My 95 got to 300k and still sold for 2k,my 98 had 165k before it was rear ended during thanksgiving but was a solid car. hell even the brief misguided moment where i had a Lexus LS400 last year was a better time than this. Help or advise me if you can.

I also want to try to pursue legal compensation from my indie via small claims court. he has not replaced my grille, i fixed the bowden cable myself, and he hasn't compensated me for the starters he burned through. I work at a starter alternator company so i got them free, but i think he should compensate me for them.