Driving conditions:

The main road (once again the Pan-American) and is in great condition its entire length. It runs from the extreme north of the country to the border with Chile. It is possible to zip along at high speeds on this road but beware of the heavy police presence. From the Pan-American, several roads lead into the interior of the country. Some of these roads are in bad condition (Kuelap) while others are paved most of the way (Huaraz and Arequipa).

Recommended roads:

If you’re up for a bit of adventure you can try getting to Machu Picchu with your own vehicle. It is relatively easy once you know how. Here is the route:

From Cusco make you way to the village of Ollantaytambo (a 2 hour drive on paved roads)
From Ollantaytambo go to the village of Santa Maria (a 2 hour drive that brings you up to over 4000 meters then drops you back down into a valley, this road is paved for the first part then turns to gravel)
From Santa Maria you make your way to Santa Theresa (a 2 hour drive on gravel, some stretches are dangerous but not technically difficult)
In Santa Theresa find parking for you vehicle (lots of small hotels do this) and take a cab to the hydro station (a 45 minute ride)
From the hydro station you walk along train tracks to the village of Aguas Calientes, at the base of Machu Picchu (2 hour walk)
You just saved about 90$ in train fare!

Police and military:

Police corruption in Peru is legendary. Although we did not have any problems, several people we met did. It seems that the standard shakedown is 200$ (always for fictitious infractions) and the area around Lima seems particularly problematic (200 kilometers before and after the city).   

Services:

There are no BMW shops in Peru

Border:

Border crossing: Macara
Cost for bike: Free
Cost for us: Free
Time it took: About 45 minutes
Comments: Border officials on the Peru side lack proper training. Make sure your temporary vehicle importation permit is properly filled out and signed by the official.