1994 325i e36 Not sure if car is burning oil or leaking out?

I just bought this 1994 325i e36 it's a great car have all records on work done. However, I just checked the oil yesterday -No indication of Car Low on oil- and it was low I added 3 qts which measured to top mark on the dip stick and today I checked the oil and it was low just under the top mark of dip stick. There are tiny drop marks of oil on the floor nothing serious. Now I am wondering if the car is burning oil or if it is leaking while car is running and hot? Any thoughts?

It sounds like your observations are within the measurement error one might see in two different readings. You left out lot of important details, including:

1. The miles on the car
2. The miles since the last oil change
3. The miles you drove between your measurements
4. Any observations of oil smoke or leakage other than "tiny drop marks" (Did you look near the oil pressure sender switch?)

He did say he just bought it...

..however, he also said it came with maintenance records.

EL_Aay_325i_e36, when was the last recorded oil change? As well as the other information CR Krieger asked for? All of this could point to possible causes or maintenance due on the car.

Just because it has maintenance records doesn't mean they're complete, or always done in a timely manner.

Thanks must have been a bad read on my part

Thanks for the responses. I rememembered that I was not on flat surface during the oil reading - there was a small grade - checked the next day on flat surface and cold read was good. I also left Los Angeles for Las Vegas and returned and checked the oil cold upon return and level was good. Thanks for info, I appreciate it.