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Turbo Upgrades
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Vargas Stage 1 N55 turbo upgrade is good up to 425whp with proper tuning and high grade fuel. Vargas N55 turbo is an all-new turbo specially made for Vargas. They build it with a billet compressor wheel of their own design and a stock turbine. It will accept all of the stock water and oil lines and the original diverter valve (upgraded DV is recommended). This kit is a direct bolt-on replacement for the original turbo and necessary if you want to start making big power from the N55.
The stock plastic diverter valve and chargepipe is the weakest point for boost leaks (the plastic cracks). Vargas Turbo recommends upgrading it to a stronger DV design. The aluminum DV designs will hold up to just about any boost level currently available.
Vargas Turbo Technologies has been in business since 1979, offering rebuilt and re-engineered turbo solutions. For the BMW market, they identified a need for both cost-effective turbo replacements and proven turbo upgrades. It's recommended that the rest of the system be upgraded to handle your tuning goals. The final Vargas rebuilt turbos are better than the factory rebuilds and at a lower cost!
Oil Recommendation - modern engine oil is formulated for emissions and to be environmentally friendly. The additives in current oil lowers the oil's ability to withstand high temperatures and stresses, lowering its shear strength and its lubricating properties. Vargas recommends oils with high ZDDP (zinc and phosphorus) content that will better protect and cool the turbo bearings. Examples of high-zinc oils are Red Line Race, Red Line Euro, Motul 300V Racing, Joe Gibbs Racing, Valvoline VR-1 oil, and most Diesel-spec oils that you can buy off-the-shelf. Some oils, especially the Race type, will need more frequent oil changes and may be harmful to catalytic converters.
WHP rating: 425. This rating is used to compare various stage of Vargas turbo kits. There is no advertised horsepower gain with this kit as it depends on your other mods and tuning. The rating is provided as a reference to use in your tuning planning. Custom tuning is recommended to match thIS turbo to your existing mods and upgrades.
This product was last offered at the strikethrough price on
03-09-2026
Vargas builds on their stock replacement turbo kits with this Stage 1 upgrade. Using the stock housings but with improved internals, this N54 turbo upgrade is good up to 470whp. Stage 1 is a hybrid of stock and upgraded internals - a new larger higher-flow cast compressor wheel matched with the stock turbine wheel. The Vargas stainless wastegate arms are also part of the rebuild. The Vargas standard rebuild is good up to 400whp so Stage 1 gives you a more capable turbo system to match your upgrade goals.
Vargas Turbo Technologies has been in business since 1979, offering rebuilt and re-engineered turbo solutions. With the N54, they identified a need for both cost-effective turbo replacements and proven turbo upgrades. The biggest complaint on N54 turbos is the rattle from the wastegates. The factory wastegates have actuator arms that lose their tension very easily, resulting in an annoying rattle. N54 wastegate rattle is the biggest complaint we hear from our customers. Vargas rebuilds each turbo assembly with OEM internals and replaces the actuator arm with a stainless steel arm of their own design. Because the Stage 1 uses stock BMW/Mitsubishi turbo housings, all of the stock turbo plumbing and intake hoses will match up. It's recommended that the rest of the system be upgraded to handle your tuning goals. The final Vargas rebuilt turbos are better than the factory rebuilds and at a lower cost!
Two other upgrades are also offered for Stage 1 -
Silicone inlet and turbo manifold pipes are also strongly recommended as upgrades over the stock plastic and aluminum pipes. Since both are prone to cracks, the silicone will be a lot stronger and almost no chance of a disappointing boost leak. Turbo replacement is the best time to add the silicone hoses. There are two styles of turbo inlet pipes - with stock diverter valves (DV) or with aftermarket blow-off valve (BOV). For the turbo manifold, there is no standardized connection to the intercooler so you will need to make note of which type you have and select the appropriate adapter from the options list.
Option A (+$25) - 2.5" and 90* turn up from the intercooler (CPE, AA, ER Sport, CXRacing)
Option B - 2.5" and angled up from the intercooler (AD Engineering, ETS, Helix, Cobb, ER Compeition)
Option C (+$25) - 3.0" and angled up from the intercooler (VRSF)
Option D (+$25) - 2.75" and angled up from the intercooler (Wagner EVO)
Option E (+$50) - 3.0" and straight out from the intercooler (AA Race)
Option F (+$25) - 2.5" and straight out from the intercooler (Forge)
Option G (+$15) - 3.0" and straight up from the interooler (AMS)
Install Kit - an Install Kit is also offered that includes all of the additional parts and pieces that will need to be replaced during this install (gaskets, hardware, etc).
Oil Recommendation - modern engine oil is formulated for emissions and to be environmentally friendly. The additives in current oil lowers the oil's ability to withstand high temperatures and stresses, lowering its shear strength and its lubricating properties. Vargas recommends oils with high ZDDP (zinc and phosphorus) content that will better protect and cool the turbo bearings. Examples of high-zinc oils are Red Line Race, Red Line Euro, Motul 300V Racing, Joe Gibbs Racing, Valvoline VR-1 oil, and most Diesel-spec oils that you can buy off-the-shelf. Some oils, especially the Race type, will need more frequent oil changes and may be harmful to catalytic converters.
WHP rating: 470. This rating is used to compare various stage of Vargas turbo kits. There is no advertised horsepower gain with this kit as it depends on your other mods and tuning. The rating is provided as a reference to use in your tuning planning. Custom N54 tuning is recommended to match these turbos to your existing mods and upgrades.
Vargas builds on their stock replacement turbo kits with this Stage 1 upgrade. Using the stock housings but with improved internals, this N54 turbo upgrade is good up to 470whp. Stage 1 is a hybrid of stock and upgraded internals - a new larger higher-flow cast compressor wheel matched with the stock turbine wheel. The Vargas stainless wastegate arms are also part of the rebuild. The Vargas standard rebuild is good up to 400whp so Stage 1 gives you a more capable turbo system to match your upgrade goals.
Vargas Turbo Technologies has been in business since 1979, offering rebuilt and re-engineered turbo solutions. With the N54, they identified a need for both cost-effective turbo replacements and proven turbo upgrades. The biggest complaint on N54 turbos is the rattle from the wastegates. The factory wastegates have actuator arms that lose their tension very easily, resulting in an annoying rattle. N54 wastegate rattle is the biggest complaint we hear from our customers. Vargas rebuilds each turbo assembly with OEM internals and replaces the actuator arm with a stainless steel arm of their own design. Because the Stage 1 uses stock BMW/Mitsubishi turbo housings, all of the stock turbo plumbing and intake hoses will match up. It's recommended that the rest of the system be upgraded to handle your tuning goals. The final Vargas rebuilt turbos are better than the factory rebuilds and at a lower cost!
Two other upgrades are also offered for Stage 1 -
Silicone inlet and turbo manifold pipes are also strongly recommended as upgrades over the stock plastic and aluminum pipes. Since both are prone to cracks, the silicone will be a lot stronger and almost no chance of a disappointing boost leak. Turbo replacement is the best time to add the silicone hoses. There are two styles of turbo inlet pipes - with stock diverter valves (DV) or with aftermarket blow-off valve (BOV). For the turbo manifold, there is no standardized connection to the intercooler so you will need to make note of which type you have and select the appropriate adapter from the options list.
Option A (+$25) - 2.5" and 90* turn up from the intercooler (CPE, AA, ER Sport, CXRacing)
Option B - 2.5" and angled up from the intercooler (AD Engineering, ETS, Helix, Cobb, ER Compeition)
Option C (+$25) - 3.0" and angled up from the intercooler (VRSF)
Option D (+$25) - 2.75" and angled up from the intercooler (Wagner EVO)
Option E (+$50) - 3.0" and straight out from the intercooler (AA Race)
Option F (+$25) - 2.5" and straight out from the intercooler (Forge)
Option G (+$15) - 3.0" and straight up from the interooler (AMS)
Install Kit - an Install Kit is also offered that includes all of the additional parts and pieces that will need to be replaced during this install (gaskets, hardware, etc).
Oil Recommendation - modern engine oil is formulated for emissions and to be environmentally friendly. The additives in current oil lowers the oil's ability to withstand high temperatures and stresses, lowering its shear strength and its lubricating properties. Vargas recommends oils with high ZDDP (zinc and phosphorus) content that will better protect and cool the turbo bearings. Examples of high-zinc oils are Red Line Race, Red Line Euro, Motul 300V Racing, Joe Gibbs Racing, Valvoline VR-1 oil, and most Diesel-spec oils that you can buy off-the-shelf. Some oils, especially the Race type, will need more frequent oil changes and may be harmful to catalytic converters.
WHP rating: 470. This rating is used to compare various stage of Vargas turbo kits. There is no advertised horsepower gain with this kit as it depends on your other mods and tuning. The rating is provided as a reference to use in your tuning planning. Custom N54 tuning is recommended to match these turbos to your existing mods and upgrades.
