Interesting replies...
I started this thread because prior to my 91 318ic going down on a non-start issue (that thread is in the appropriate section on here) - I was successfully running 87 octane with NO issues what so ever... Meaning, I did not have or experience any pinging, no knocking, no pre-ignition, no drivability issues, etc etc etc. As a matter of fact, out of a completely full tank of 87 octane gas, I was able to go 384 miles out of my last tank - no BS. I've read on other forums about other BMW owners of E30's, both 318's & 325's also using 87 octane with no issues at all.
Now, I don't flog on the car at all - meaning, I don't jump stop lights, I don't try to race others on the highway, I don't speed shift, I don't do WOT runs up and down the streets, etc. I use the car in a normal manner - driving to & from work, shifting it right before 3k, running errands, etc. My daily commute to & from work, total round trip is 114 miles - 5 days a week.
Sure, the owner's manual may state to run "XX" octane - however, just because the manual states to run "XX" octane does not mean the car will not run on lower (or higher) octane fuels. Heck, I even run 87 octane in my Cobra - when the manual for that also states to use 91 (or better) octane - that car runs flawlessly as well.
Understandably so - if one has a highly modified engine, be it a naturally aspirated engine that has been radically bored out, heads, intake, cam, exhaust, etc., OR if running a forced induction vehicle (supercharger or turbo), OR if the vehicle has been "chipped" then surely I can see that such a vehicle would HAVE to be on a strict higher octane "diet". But, if all you are doing is driving your 318/M42 to and from in a normal manner, the car will get nearly the same mileage (maybe even better) on 87 octane AND it will operate, idle, drive & run perfectly fine.
I previously filled the tank 3x now w/ 87 octane - each end result was 378, 381 & 384... and the gas gauge needle was just about resting on the "R" - the gas gauge low level light never illuminated for any of those prior fills... (the low level light DOES work, because when I first bought the car it only had a little gas in it and I ran it down to the point of when that light kicked on).
I had read online that when or if the low level fuel indicator light does come on in a 318/M42, the driver/operator has about another 12 miles to go before the tank is COMPLETELY EMPTY (or in danger of running out of gas). If I were to run the car to that point on the last result of 384 miles, I realistically could have tallied up 396 miles on a tank of 87 octane... That's damn close to 400 miles on a single tank of gas - good or bad?
Oh and one more thing - don't go busting my chops about running the car low on gas - I've heard all of the myths, stories, threads, etc as to "sucking up tank debris, etc" if running the tank or pump below 1/4 tank... I've run every car I've ever had down to nearly the "last drop" and I've never once had ANY vehicle EVER burn up a fuel pump, suck shit into the engine, etc - NEVER. Let me also add there is NO WAY the fuel pump COULD suck up anything into the engine if running the tank low because: 1) The fuel pump has an extremely fine mesh screen (or commonly known as a sock) on the bottom of the pump which prevents ANY debris from getting sucked up into the pump OR fuel lines and 2) the fuel filter also filters out any impurities and/or mirco particles that *might* get past the fuel pump's screen... Don't believe the hype - sure it's ok to take precautions, but seriously, running the tank down to 1/4 or less is NOT going to hurt anything (IMO).
Now, back to 87 octane - for those running a non-modified M42 - fill up with one tank full of 87 and drive the car normally - post back here w/ your results/observations, etc. If you're driving style is that of Mario Andretti, don't even bother...
Now, there are numerous things that COULD and CAN affect fuel consumption:
1) driving style
2) duration of travel
3) highway or local travel
4) preventive maintanence of engine/vehicle (checking things BEFORE they become inoperable)
5) tire psi inflation
6) regular maintenance of engine or driveline (oil changes, fuel filter, air filter, pcv valve, injector cleaner, tire rotation, brake wear, wheel/hub bearing wear, tranny fluid changes, rear diff fluid changes, etc)
7) driving w/ windows open (changes aerodynamics of vehicle)

driving w/ A/C on
9) speed limit of vehicle over a prolonged traveled distance
10) geographic location (above or below sea level)
I'm glad to see the above responses, because I was just curious to see how the thread would progress knowing that I myself do run the 318ic on 87 octane (and that others have or do as well).
Keep the conversation going!
