The answer about reliability actually varies a small degree model by model. For instance, according to the consumer affairs database, the 7 series is the worst in terms of reliability and the 3 series is, on the average the most reliable in BMW's lineup. However, that being said, any BMW model on the average is far less reliable than a typical Toyota or Cadillac which rank 3rd and 2nd respectively. On the top of the list is of course, Lexus. To say all Japanese makes are reliable however, is not fair either as Nissan and Suzuki rank below BMW on the scale of long term reliability. BMW ranks mid-pack in long term reliability.
According to the consumer affairs database, the most common problem with BMW's are electrical in nature- problems with the navigation system, central computer module, anti-lock brake system, window motors, wiper motors, lock switch relays and so on. Other common non-electrical problems include, leaking engine seals, crankshaft failure, rear differential failure and various smaller items like faulty fuel pumps and powersteering pumps.
As far as maintenance goes, BMW's require extensive (and expensive) regular work although until now, have cost zero as their excellent maintenance plan covers just about everything.
Interestingly, starting Janurary 2008, BMW's free maintenance plan will no longer be offered, as currency exchange rates have made it unfavorable for German manufacturers and they have been forced to cut back these nice extras in an effort to preserve profit margins for their investors.
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