Exhaust system
Since we're in the back of the car, let's think about
the exhaust system. For most people, a factory
exhaust will work fine, fit better, last
longer, and offer better performance than many
aftermarket exhaust systems. The original exhaust
system lasts many years, which is good because it's
not cheap to replace with a new factory item.
 This muffler needs replacing. Even if it isn't noisy, you will smell exhaust in the cab of your car. Photo courtesy of www.2002bmw.com.
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Aside from rusting out, most exhaust system problems stem from broken or missing rubber hangers and plastic spacers near the muffler. Another problem that occurs often is of the exhaust system not being adjusted properly at the front downpipe. Sometimes the problem is that the bracket that attaches to the transmission is missing. Other times, it's just not adjusted correctly and it causes the other end of the exhaust to hit the
body or suspension in the back of the car.
Smoke
A lot of 2002s smoke. Two types of smoke are usually found: bluish oil smoke or whitish steam. Whitish steam can be sort of sweet
smelling, and means that coolant or water is getting
into the combustion chamber, usually through a cracked
head or leaking head gasket. A head gasket or a
cracked head is not a cheap repair, no matter how you
look at it.
Oil smoke is common in 2002s, especially
with high (100k) miles. If the smoking happens upon deceleration it is usually the result of old valve seals and worn valve guides. If the oil smoke happens more on acceleration, then the piston rings are probably worn out. As long as the oil level is checked regularly and kept full, there is no major problem that needs to be attended to right away.
A good indication of the engine's internal condition is to look inside the oil filler cap. If the engine parts inside are fairly shiny and clean looking, then the rest of the engine is probably in pretty good shape and the oil has been changed regularly. If you see lots of black areas or everything seems to have been painted black, then chances are good that the oil wasn't changed very often, and the engine will probably use a bit of oil. This is a good indication that maintenance on other parts of the car was neglected as well.