Our first-hand (limited) experience working with our respective vehicles, a 2001 Volvo V70 Crosscountry, and a 1997 BMW 328iC (E36 body). Much of the information here is likely applicable across a wide range of vehicles.
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Tools: basic tools. If you want to spend around $10,000, you can avoid going to the mechanics ever again. Only for those who really, really enjoy working on their car.
E36: model body for 1991-1999 3 series BMW. Instead of searching for your precise model, search this. Much better google results.