1. Why the E39 BMW M5 is still considered the ultimate sports sedan

2. The appeal of the E39 M5

3. A logical upgrade

4. Maintenance costs and reliability in real use

5. Dinan modifications and OEM-Plus engineering

6. Market prices

7. Conclusion

Why the E39 BMW M5 is still considered the ultimate sports sedan

The E39-generation BMW M5 is widely regarded as one of the greatest performance sedans ever built. Produced at the turn of the millennium, it combined luxury, naturally aspirated V8 power, and everyday usability in a way that few cars have matched since. Despite its reputation for high maintenance costs, real-world ownership experiences continue to challenge many of the common myths surrounding this iconic model.

The appeal of the E39 M5

When compared with other generations such as the E34 or the later E60, the E39 M5 occupies a unique position. It represents the final era of analog M cars-free from turbocharging, excessive electronic intervention, and oversized dimensions. For many enthusiasts, it strikes the ideal balance between performance, comfort, and design.

With its 4.9-liter naturally aspirated V8 producing nearly 400 horsepower, the E39 M5 was once among the fastest four-door cars in the world. Even by modern standards, its performance remains more than adequate, especially given its refined and understated character.

A logical upgrade

Ownership journeys often begin with the more modest BMW 540i, a car that shares much of its DNA with the M5. However, while the 540i delivers comfort and V8 performance, long-term reliability concerns-particularly related to cooling system components-frequently push owners toward the fully engineered M alternative.

Interestingly, real-world ownership suggests that a well-maintained M5 can be more reliable than expected, especially when compared to complex powertrains such as the twin-charged engine found in vehicles like the Volvo XC90.

Maintenance costs and reliability in real use

The E39 M5 has a reputation for expensive upkeep, but actual costs vary significantly depending on prior maintenance. Common service items include water pumps, cooling system components, and suspension refreshes. When these are addressed proactively, ownership can be surprisingly manageable.

Parts availability has become more challenging over time, but failures that truly “break the bank” are less common than expected. High-mileage examples often benefit from having major work-such as VANOS servicing-already completed, reducing risk for subsequent owners.

Dinan modifications and OEM-Plus engineering

This particular example features extensive upgrades from Dinan, a name closely associated with high-quality BMW tuning in the early 2000s. During that era, Dinan worked closely with BMW to deliver performance improvements while preserving factory warranties.

Key upgrades include:

• Big brake kit

• Limited-slip differential

• Short shifter

• Carbon intake system

• Strut braces and suspension components

These modifications enhance performance and driving feel without compromising the original character of the car, reinforcing the E39 M5’s reputation as an OEM-plus masterpiece.

Market prices

Market values for the E39 M5 vary widely depending on mileage and condition. At present:

• Well-kept examples with approximately 90,000–100,000 km typically trade around €27,000–€30,000
• High-mileage cars (over 300,000 km) with extensive service history can be found for as little as €10,000–€12,000
• Low-mileage collector-grade examples command significantly higher prices.

Conclusion

In an era dominated by electric vehicles producing extreme power figures, the E39 M5 remains relevant by offering something increasingly rare: an analog driving experience paired with genuine luxury. Subtle modern upgrades, such as discreet Bluetooth integration, allow everyday usability without compromising originality.

The E39 M5 is not merely a fast sedan-it is a benchmark. For those seeking a performance car that delivers emotion, usability, and timeless design, it continues to stand as one of the finest examples ever produced.

Inspired by the analysis of our friend @magnacars. Make sure you check his other videos

https://www.youtube.com/@magnacars

 

 

Are you already a proud owner of a BMW E39 M5? If so, check out our selection of parts for this car at the following link:

https://octoclassic.com/product-category/bmw/e39

 

 

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