Valve cover gasket leaks are common after 60,000 miles. Symptoms will include oil drips under the vehicle and burning oil smell from the engine compartment.
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Most reported 1998 BMW Z3 problems
A fluid leak may develop from one or more power steering hose. When a leak is being repaired, it is not uncommon for multiple hoses to be replaced.
An engine coolant leak may develop from the expansion tank resulting in engine overheating. When a cooling system component fails the entire cooling system should be inspected. It is not uncommon to find additional component have failed or are leaking.
Overheating can cause severe engine damage. If the engine begins to overheat it is recommended to stop at the first available location and have your vehicle towed to a repair shop.