I've always been a big fan of the M5 and like many people it came to light at the turn of the new millennium. It started a craze in the premium/luxury car world. Not that it hadn't been done before - this was the 3rd generation of the M5, and Mercedes and Audi had made big fast executive sedans for years as well. But this M5 came in greater numbers and greater popularity. It seems to have been the most copied and imitated BMW ever made.
Unlike the previous versions of the M5 this one wouldn't be hand built and was released in mass quantities by comparisons to the previous iterations (E28 = 2,191; E34 = 12,254; E39 = 20,482). But it seemed that pairing one of the most beautiful sounding DOHC aluminum V8's to a 6 speed manual in a luxurious sedan hit just the right chord with car fanatics. It was the right combination of sports car performance and subtle discreet sedan styling. It had a large opening in the front bumper and quad exhaust which was quickly imitated on everything from Nissan Maximas to Merecedes AMG's. The M5 otherwise looked ordinary. Clive Owen was cast along side Madonna in a short film by BMW and Guy Ritchie called The Hire which summed up the M5's Jekyll and Hyde persona perfectly.
The E39 M5, as this third generation car is known, had a powerful V8 that provided linear power and V8 torque. It was DOHC with BMW's VANOS system (variable valve timing) and like nearly every M car a throttle body to match each cylinder. This era was the beginning of a major horsepower war between the Germans making premium sedans. BMW, Audi and Mercedes would battle until each produced cars in this segment with nearly 600 bhp today.
Of course today this means that finding the right M5 can be tricky. Because they are such great cars to drive everywhere, you won't find a shortage of E39 M5's in the 200k mile range. You can find examples for a nearly impossible to believe $10,000! I never thought I'd see the day but they are out there. Of course you shouldn't jump on the first $10k M5 you see. This era of BMW's are notorious for plastics and rubber in the engine bay for hoses and other auxiliaries which have become brittle over the years. The suspension on E39's has bushings that are well known for needing replacement as well. Did BMW cut the budget short on these materials or was it all the heat and stress some of them succumbed to over the years? Additionally, the VANOS system has its share of issues and can be a costly repair. And things like clutches can be an expensive job as well. As always do your research on the big issues and get a proper PPI. Just don't expect perfection even on the best examples and have some spending money handy for repairs.
It's perhaps a number of potentially costly repairs and the high price of gas on a car which struggles to hit 15 mpg that makes them worth so little today. But the older versions from the late 80's and 90's (E28 and E34) have suddenly had a resurgence in value. Much like the E30 M3 it seems these cars are bringing back memories for people and becoming classics. Given the ultra low prices on the E39 M5 it will only be a few years before they take off in value as well.
As always, I in no way, enlighten based on what's sitting in my garage. I admit I'm an M5 fanatic and have owned older versions, but an E39 M5 has never graced my garage. I'm certain that if you have the means to purchase this car, set aside a few thousand for repairs, and enjoy it regularly, the value in the next 5 or 10 years will increase dramatically.
Happy Motoring
