How many cars can dominate a genre for a quarter of a century? Outside of a handful of mid-engined Italian wedges and a certain frog-eyed ass-engined slot car, not many. However, 26 years ago, BMW hit upon magic. With massive V8 thrust, a shockingly capable chassis, and remarkably robust build quality, a legend was born. The E39 BMW M5 is often regarded as the greatest sedan of all time, and thanks to depreciation, it’s now more affordable than you might expect.
At this point, we have to concede that the E39 M5 is the sort of car its makers will never be able to replicate. A new BMW M5 Competition isn’t as satisfying of a driver’s car or as comfortable a daily driver as this. From the inputs to the feedback to the way the car breathes with the road, this classic super sedan may have arrived two years late to America for the 2000 model year, but it feels absolutely timeless.
Sure, a Rolls-Royce or a Bentley might ride softer, a Mercedes-Benz S-Class may be more luxurious, and a hardcore monster like the Jaguar SV Project 8 may be faster, but few sedans have the bandwidth and involvement of the E39 M5, much less the pace on top of it.
What Is It?
Back in 1984, BMW had a thought: People like fast cars, but the people who can typically afford fast cars are at a stage in life where they have all manners of responsibility. The suits, the kids, the luggage, the expectations of a family lifestyle. Instead of an impossibly low coupe that’s roughly the size of a clawfoot bathtub, what if someone made a really, properly, next-level fast car with four doors? Presumably, everyone scratched their chins for a minute and realized that this was a good idea. The original M5 with its supercar-derived 282-horsepower M88/3 inline-six was born.
The second M5, the E34, didn’t quite have the same splash. It was still brilliant, but not only did BMW end sales in North America two years early, The Lotus Carlton was faster, and Mercedes-Benz had started to sell AMG models straight off the dealer lot. This all meant that for the third M5, BMW knew it had to do something big. Fortunately, it already had a great set of bones to work with. Even today, the E39 5 Series is quite literally still the benchmark sedan for ride and handling. From aluminum arms to a clever integral link rear suspension setup, driving a regular E39 5 Series was like watching Van Halen work the frets — everything was exactly, perfectly, millimetrically, mind-alteringly right. So what happens when you drop in not a high-strung inline-six like in prior M5s, but a thumping great 4.9-liter V8?
Called the S62, this quad-cam juggernaut was BMW’s first performance V8, and my word, did it ever sing. It had all the trick stuff — variable valve timing, eight independent throttle bodies, scavenging pumps in the oiling system for high-g maneuvers, hollow camshafts, a double-row timing chain, and 11:1 compression. In 1998, the Acura NSX made 290 horsepower, the Chevrolet Corvette made 345 horsepower, and the Ferrari F355 made 375 horsepower. The motor in the E39 M5? Try 394 horsepower. Not only did the E39 M5 run from zero-to-60 mph in 4.8 seconds during Car And Driver instrumented testing, it delivered 0.90 g on the skidpad and makes sweet, sweet induction noise whenever you’re on the throttle.
Driving an E39 M5 today is a lesson in anachronism and excellence all at once. The rubbery, long-throw shifter is nothing short of truck-like, the soundtrack is far quieter than you’d expect, and the recirculating ball steering isn’t exactly razor-sharp. However, as the speed builds, everything falls into place. The steering weights up and telegraphs grip to your fingertips, the shove of the big V8 is nothing short of intoxicating, and the chassis makes nearly two tons of sedan shrink around you, goading you into ever more outrageous cornering speeds. This car communicates like nothing you can buy today, yet it imbues its driver with the same sort of confidence as an 800 FICO score, a supermodel partner, or a full ride to Harvard. You’ll feel like you have it made, and that combination of sledgehammer acceleration, cornering excellence, and bank vault solidity is why to many, E39 M5 is a shorter way of saying the ultimate sedan. More than a quarter of a century on, it’s still the king.
How Much Are We Talking?
While widespread appreciation of the E39 BMW M5 has driven up prices in recent years, driver-spec examples are still attainable for about the price of a normal midsize sedan. A 2024 Chevrolet Malibu 2LT stickers for $32,595, and you can certainly buy an E39 M5 for less than that. Take this 2002 model, for example. Not only is it a facelifted car with the updated three-spoke steering wheel, 16:9 navigation screen, and Corona ring headlights, it seems to be in beautiful shape and sold on Bring A Trailer for $31,250. Sure, it has 109,000 miles, but a few tasty modifications like European-spec headlights, Dinan springs, Koni dampers, and a Supersprint exhaust make it mighty tempting.
If you’re willing to go for a pre-facelift car that’s a little less cosmetically lovely, you can get into an E39 BMW M5 for five figures less than that. This 2000 model with 113,000 miles on the clock sold on Cars & Bids last month for $17,000. The wheels are curbed, the shift boot is missing, and the rear tires are toast, but it’s an E39 M5 for $17,000. That’s a whole lot of performance for the money.
Accepting a few minor cosmetic flaws isn’t the only way of getting an E39 BMW M5 for cheap. Here’s a facelifted 2003 model with 121,000 miles on the clock sold on Bring A Trailer earlier this month for $18,800. Why so little? Well, it has a minor hit on its Carfax, the photo gallery is rather small, and it could use a new M5 badge, but otherwise, it seems like it could be a solid car that you could totally daily drive. These things just munch up miles, so by all means, pile them on.
What Could Possibly Go Wrong?
While the E39 BMW M5 is among the more reliable M cars, there are a few common trouble spots that are worth looking into. The timing chain guides are made of plastic, and roughly a quarter century on, maybe brittle enough to need replacement. While parts are reasonable, labor can be excruciating. Budget $4,000 all-in for replacement, and do all of them while you’re in there.
In addition, the fancy VANOS variable valve timing units contain seals that do go bad over time. You can have the units themselves rebuilt for around $250 each, but that doesn’t include any labor for installation or removal. Figure a few hundred bucks on top of that to get everything fettled.
Cars primarily used for short trips can suffer from carbon buildup blocking the secondary air injection ports, resulting in emissions-related error codes. Not fun if you live in say, California or New York. While the parts cost of cleaning this out is basically nil, the labor costs are high due to the time involved. Expect a bill with a comma in it should you ever need it done.
Lastly, winter-driven E39 M5 examples from salty environments do rust. From my experience, the sills, quarters, and jacking points are the first areas to go, and proper rust repair is expensive business that can run into the five-figure range depending on how thorough you want to be. Then again, most cars made of steel can suffer from corrosion, so it’s not exactly an unexpected problem.
Should You Buy An E39 BMW M5?
Look, heavily depreciated high-performance German cars are never cheap to run. Sure, you can buy an E39 BMW M5 for Chevrolet Malibu money, but you can’t maintain one for Malibu money. However, if you can keep an emergency fund of several thousand dollars and have always wanted one, you should buy one. They are as good as people say, they totally live up to the hype, and it’s easy to see why the E39 BMW M5 is regarded as the best sedan of all time.
(Photo credits: Bring A Trailer, BMW, Cars & Bids)
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When I was a teenager my uncle had an E39 M5. I was car crazy and always looked forward to the rare opportunities to ride along in it. One day he offered to let me drive it, I was terrified! I had never driven a manual, and the two vehicles I’d ever driven were my family’s Suburban and my glacially slow Mk3 VW Golf with the 2.0l. I knew all the stats on this car (it was basically my dream car) and feared I’d break it somehow. Stalled it a couple times, made it to about 25 mph before saying I was done.
Over a decade later I purchased a well sorted but high mileage E28 M5 back when they cost less than 10k. That was a fantastic car. My E39 528 iT was also great when it ran. It had 200k miles, less than the E28 but wasn’t as well maintained or as robust so I was fixing it all the time.
The 540i/6 is arguably a better value as it’s relatively cheaper to run, fix, and find parts for. You still get the V8 power and driving experience, just without the fuss of it being a “M” car.
AFAIK the E39 540i had a 4.4l V8 (I had one when I was living in Germany), unless the US got a different variant
Having owned an e39 M5 and three e38s 740s, there are definitely some advantages to the 540i, particularly any part that says ///M on it costs double the non M part. That said the cooling system and timing chains are way better designed on the M5 so at least that’s a nice positive for the reliability.
Also the difference in performance of the two engines is pretty big, the M62 is a great engine, but it definitely doesn’t build power like the S62 or have the immediateness to throttle response.
For the purchase price now a days, the 540i/6 is a great alternative if you can find one, though like e36s it seems hard to find nice examples anymore of the non M cars.
I agree, the S62 has a much better punch and is a special V8. But the M62 still sounds good and has a lot of potential on the table.
These, the Z8 which shares its drive train, and the Z4 M Coupe are my favorite BMWs – and all coexisted at the same time, new on lots!
Back in 01 I had a friend who had always been a BMW guy. He had been driving a dark blue E39 wagon. One day, after trading it in, he showed up with an 01 540i, 6sp, black on tan leather. Sticker was 60k and he left with it for 50k. Not an M5, yes, but pretty close. We put it on a set 19″ TVRs and it sat so right. I was young and naive so I just thought that’s how BMWs would always be. Ha! Bangle got the reigns at styling and they released the new 7 series (Oof!!). Two decades later sedans, V8s, and manual transmissions are all nearly extinct. You don’t miss the water til the well runs dry.
I would buy one if I could drift it around for a day with Madonna or another pop star in the back. Great car, great BMW commercials in that era too.
That front 3/4 pic of the 2002 with the fancy Dinan/Koni bits. Ooof.
I’ll save you the scroll and reproduce it here:
https://images-stag.jazelc.com/uploads/theautopian-m2en/2002-bmw-m5-bringatrailer-1.jpg
I’ve sworn off all German machinery for the rest of my life but oh-my-lawdy that looks absolutely stellar…
Neighbor has one for last 15+ plus years. Low miles, very clean. Has never driven it more than 1K per year. Because it’s always got some problem. Usually related to the engine or computer issues. He’s on the 3rd engine, all used. He told me he had purchased it to be a daily driver, but after 2 weeks with it he bought a back up car, a Benz. Which has also been a basket case.
His two cars are always fighting for space on the jack stands in his garage.
What I find interesting though is it seems a lot of his pain is self inflicted. He buys 90% of his parts off Amazon, from cheesy Chinese companies. I have been over there at times when he’s replacing parts, and the so called official BMW parts are obviously counterfeit. Same with the Benz parts he buys. I have seen him replace some parts 3 or 4 times, before he gives up and buys from the dealer. So it’s hard to have much sympathy at this point.
I know a lot of people love BMWs. And I do wish them luck.
As my late uncle used to say, “no pity for self inflicted injuries.”
FCP Euro could be the best advice you give him. As well as a link to M539 Restorations on YouTube.
Thanks. The main issue is that he is just too cheap to buy decent parts.
Which is a real shame. So no pity here either.
My dad does the same thing.
Him: “What should I buy?”
Me: “I recommend X”
Him: “I got Y on Amazon for half the price!”
Him, two weeks later: “Hey can you help me figure out why Y isn’t working?”
It, like everything else, isn’t working because you’re a cheap bastard, I don’t say, but do think very loudly.
Re: the BMW – have one, love it, but yeah, book high maintenance costs. I’d just mentally add $5k to the price of anything you’re looking at. Once it’s sorted, it’ll be great, but expect to pay a competent mechanic some hefty bills to get there.
Yes. For the time he wastes on doing things this way, he could easily afford to take it to the local BMW shop only 3 miles away. He always loves to show me the latest part that showed up and brag about how little he paid for it. And I have to literally bite my tongue not to laugh. This is a guy who easily makes over $200K a year with no dependents or wife.
Recently the Benz was on jack stands for about 2 months. The complaint was a vibration at about 57mph. So 4 new shocks (air), new wheel bearings, brakes and rotors, $200 bucks at the wheel repair shop (not bent), full set of new tires ($1,500), and 3 EBay driveshafts later. He finally discovers that the carrier bearing for the 2 piece driveshaft is kaput. I am not a great expert at diagnostics, but had suggested this before he spent all the money and time. At this point any sympathy I had has disappeared.
And he wants to sell the BMW, but can’t because of the reputation. The other day he offered it to me for 2K. I told him if I wanted another big headache I would just get married again.
But because I am a poor, to him that also makes me ignorant and stupid.
TBH, this guy has become a free source of entertainment when I get bored.
I always liked the old BMWs from the late 1960s/early 70s the best. Good simple cars back then.
I liked the E39 M5 better when it was a $7k car, I could never justify paying the prices they go for nowadays. I’m glad I owned one when they were cheap, it was a great car and I regret selling it, but hindsight is always 20/20 I guess. I’m still driving an old BMW every day, though it’s quite a bit slower (95 525i).
It’s the kind of car that needs to be a daily driver. Like the article itself says, BMW found that people had responsibilities to tend to. At the age and value the E39 has reached, it’s usually too expensive or too troublesome to justify daily driving, much like air-cooled Porsches.
If you’re not going to daily drive your M5, then there are much better, cheaper 2-seaters for the job of a weekend/fun car, like the Z3/4-M and Boxster S. Unless you’re bringing 2 1/2 children to the car show, it’s kind of in a little gap-filling group of people who are simultaneously willing to deal with a classic performance car’s comfort/maintenance and not willing to deal with 2 doors, or die-hard BMW fans.
Buying a 2021 BMW, a couple weeks ago, I thought I must be insane. Buying a 20+ year old German luxury / sports sedan, even a “great” one, for the same price? There would be no question, just check me into the institution, I’m insane.
That 20+ year old BMW will easily outlive any BMW built in 2021, I can bet money on that.
Puff puff, pass.
But only the 20+ year old ones. Once the wiring went biodegradable, the cars have a shelf life. I’m currently living this nightmare in an 06 530ix. Dashboard will just go blank for a minute then come back. Front headlights are just ticking away, I’ve repaired one poorly already. Currently debating what to do.
https://i.postimg.cc/JzZFZxN2/IMG-0377.jpg
Yeah what I meant was like the E30, E34, E36 era cars. Once you got into the mid-2000’s it was all a mess. I forgot that 20 years ago was 2004, yuck. In my mind, 20 years ago was like 1995 haha.
Call me insane then. I currently own an e36 M3 as a daily driver. Have an e36 328is as a project. Used to have an e39 M5 as a daily. My parents just purchased their 3rd e38 7 series. We have no interest in the newer ones and are quite happy buying BMW s from their golden years. Somewhere in there I had an R56 Mini, fun car scary unreliable, sold it when the warranty ran out. I’ll happily spend money to keep the awesome vintage BMWs on the road as daily drivers much to the chagrin of my local dealer service department.
Oh boy! So I LOVE(D) this car. I decided that I couldn’t afford the M5 and got what I thought was the next best thing, a 2003 540i 6MT. M5 looks and V8 power! Long story short, it was BY FAR the most unreliable car I’ve ever owned. Every other week, a new debilitating issue would come up. And mine was in generally great shape! Luckily, I had a short commute and I only had to call a tow once, but that era of BMWs are brittle! I mean, they were probably less brittle than new BMWs are today, but at 20+ years old, all the plastic and seals and whatnot are getting really old and brittle.
I still think about that car. When it worked, it really was special. And if you’re going to dip your toe into an e39, go M5. The real problem with the 540i is that it’s not an M-car, so it just doesn’t make as much sense to fix. On the plus side, it really wasn’t that bad to work on…
I was thinking about getting an older 5 series, but because of these issues, I’d have gone with an E34, and that was too old for a daily driver, so I’ve gone on to other dreams.
E34 is perfectly usable as a daily driver. All the mechanical parts are readily available, and they’re easy to work on. I daily drive mine 80 miles a day, it does just fine; nice and quiet at 80mph with good AC and heat.
My family has found it to be hit and miss having owned three e38s, two e36s and one e39. One e36 being and M3 and the e39 being and M5. The first e38 was very unreliable, mostly cooling system issues. The M5 was needy but not unreliable. The M3 has been amazing, driven hard, put away wet and really just needing differed maintenance. Owing a vintage BMW comes with the expectation that you will have to fix stuff, but man it’s worth it for the way they drive.
Back in the late 90s, I had a neighbor in Houston with an E28 M5 in a dark burgundy color. The car was immaculate and I always dreamed of owning one.
Then I took a new job, and the COO and Chief Council had a strange competition going between who could own the neatest German car. The Chief Council had a C43 AMG and a Z3M, and the COO had an E34 M5 that he later traded in for an E39 M5. The day the COO rolled in with that E39 was the only day I saw the Chief Council get visibly angry, as he had been unable to get an allocation on an E39 M5 and the COO hadn’t mentioned that he had managed to.
My goodness was that E39 M5 a magnificent machine, but I have to note that in the two years the COO owned it, it spent more than a year at the dealership dealing with electrical and VANOS issues. In a testament to the E39, he traded it in on an E39 540i Sport to drive while he waited for his preordered W211 E55 AMG to be delivered. I left that job before the E55 arrived, but man were lunch discussions with those guys a lot of fun.
I test drove a nice one a few years back. I was a bit perplexed at the hype. I’d rather buy a manual gli to be honest.
I think as a fun car or classic an E39 works because you can afford to have it out of commission but I wouldn’t risk it as a daily driver. They are still a legend and I would still buy one as a second or third car
They’re perfectly fine as daily drivers if you keep up on the maintenance and have any amount of wrenching skill. I’ve been there and done that, never been stranded or needed a tow. Hell, I daily drive an even older BMW (95 525i) with 254k miles as a daily/only car and I’ve been fine.
The answer is simple. Buy two of them.
Ah, the final paragraph disclaimer. Worn out Beemers have always been cheap. Nothing new. Certainly can be a fun project. But tread lightly for and daily driver needs
One the best cars I ever owned, nice six speed E39 and bought it new.High point of my BMW period.
I eventually replaced with a rare manual 645ci coupe which was a nice car ( I was not shocked by the Bangle styling) but it did not have the emotional pull of the M5. I only bought one more BMW ( a V10 M6), but in a way the brand was moving in a direction that was less hard-edged than I had previously so after decades of BMW ownership I moved over to Porsche.
Considered one of these bitd but couldn’t live with the manual as a daily. Bought an E55 AMG instead. Ran that to 140,000 km’s with no expenses other than regular servicing. Still miss that car.
Biggest thing I learned from this article is that the Malibu can still be bought by non-fleet consumers
I have never owned a BMW, but I truly think I appreciate the E39 series most as a 5 series. I think it is BMW’s golden era, similar to Toyota’s from the 90’s.
When these things were new, somebody working at the business next door to where I worked had one. I suspect that the same person ALSO had a 993-series 911 Turbo, because I never saw both cars at work at the same time. I’ve had a thing for Arena Red ever since then. And hey – the E39 M5 is waaaaaay cheaper to buy these days than a 993 Turbo.
TIL GM still sells the Malibu in 2024
I’ve always wanted one of these, but a 20 year old BMW? yikes…
I daily a 1998 e36, and before that a 2001 e46 with 215,000 miles. I treat the entire car as a wear item. Fix the easy/cheap stuff and drive it until something catastrophic happens. Then just go on FBM and get another one for $3000.
I daily a 1999 e36 M3 with 193k miles. It’s a great daily, very cheap for the performance. Mind you mine isn’t perfect, which is how I like it, a rusty northern car that I can autocross, beat in the winter and put away wet. At least it doesn’t have electrical problems like the 09 Civic Si I just purchased.
The older BMW’s are more reliable than the new ones by far.
The first time that thing breaks and you get hit with the bill, you will wish you bought the new Malibu. A 20 year old BMW over a new car is not a smart decision.
Yeah, but depreciation on the new car is very high, so the used BMW is not as bad as it seems, as long as the engine runs well. And the bmw is a maturing classic whereas the Malibu is not
Yes. If you own each car for ten years, the BMW will be worth more by the end of your ownership and the Malibu will be worth literally nothing. You’ll likely end up financially better off with the beemer, once you go to sell
/copium
You might also find you’ve spent more than its appreciation just to keep the BMW going vs having spent nothing on the Malibu.
If you just need reliable transportation, that is correct. If you want to enjoy driving, get the BMW.
If you own an old BMW and are paying somebody to fix it for you, that’s the first mistake. You really shouldn’t own one of these unless you are willing to fix it yourself, in which case it’s a fairly simple and easy ownership experience.
You really shouldn’t own one of these unless you CAN fix it yourself
The spirit may be willing but unless you have dedicated, lockable garage space, all the tools, all the time, all the monies, good skills, and an excellent backup professional mechanic to call for those above and beyond jobs fugettaboutit.
Now about that Malibu….
i do all the maintenance on my old bmw’s on a gravel driveway; definitely don’t have “all the monies” or “all the time”: just common sense, decent tools, and a hard head.
no backup mechanic either – if i don’t know something i learn it.
How old are those BMWs?
I think that’s the answer to owning any old “fun” car. Unless you’re very well off financially, it should be your 2nd car and you should be able to do 90% of the work yourself. After all, it’s a hobby and the wrenching is part of it.
Buy the M5 over the Pacifica. You’ll be happier overall. 😉
(It’s called a call-back if this comment seems otherwise nonsensical)
There are also other BMW “they all do that” things that the M5 has which are less than stellar. The window regulators fail, as does the sunroof. The cooling system is a wear item. It will leak oil from every possible leak point. And book rate for the rear shocks is 6 hours IIRC (that’s way high, but you’ll get charged it if not doing it yourself). And, of course, the M Tax.
I would love one of these cars, but after my 540i6 experience, I am naturally hesitant.
“Greatest sedan of all time”?
Clearly, you’ve never driven a ’79 Lincoln Versailles.
Do I look French to you?
Or a W126.