BMW E39s Are the Best Buy in V-8 Stick-Shift Sedans
Even in a softening collector car market, bargains are few and far between at the moment. And if you have an itch for a V-8, manual transmission super-sedan, good luck scratching it—a Chevy SS, Pontiac G8 GXP, or a Cadillac CTS-V with a stick is rare, and accordingly, very pricey. Go back another decade or so, though, and you’ll find the car that was very much on the minds of the GM engineers who designed the fast four-doors mentioned above. It’s the 1996-2003 BMW E39 540i manual, and it remains both surprisingly affordable and not all-that-difficult to find. It might be one of the best bargains in the collector car world at the moment. Decent ones are out there in the low, low five-figure range.
The E39 is generally regarded as the stylistic high-water mark for the BMW 5-series. Design credit goees to Joji Nagashima, completed early in the tenure of BMW’s design chief Chris Bangle (1992-2009). The controversial Bangle at least had the good sense not to fiddle with the E39, and it debuted in North America for the 1997 model year. There were several six-cylinder versions, the largest of them being the 535i with its 3.5-liter unit. There was also the range-topping, more hardcore M5 with its 4.9-liter, 394-hp V-8. The M5 version of the E39 is already highly sought after by the BMW faithful, and in both performance and current price is closer to the later American challengers, but the 540i is where the best bang for the buck is at the moment. And when it came out, the major car magazines could scarcely control themselves:
“Of all the long-term test cars we’ve ever had, only two made us misty-eyed when they were returned: our speed-yellow 1995 Porsche 911 Carrera 4 and this jet-black 1997 BMW 540i manual. But the empty void we felt as each of these cars left our garage wasn’t merely because we instantly missed the power and prestige such German machines deliver. It was something more, something deeper. At the risk of sounding maudlin, these cars have soul. The redesign of BMW’s 5 Series in 1997 sharpened the midsize Bimmer’s focus. With its new tauter platform, upscale styling, improved all-around performance, increased safety features, and larger and more supple interior, the 5 Series instantly became the quintessential sport/luxury sedan. It was also the hands-down winner of our 1997 Import Car of the Year award.”
That was Motor Trend in 1997. For the record, Road & Track, Car and Driver, and Automobile also gushed in their opinions on the car.
As per usual, Car and Driver extracted the most performance from the 540i manual, getting their long-term tester to 60 mph in 5.4 seconds and posting a 14-second quarter-mile (no wonder they replaced the clutch on their car at under 38,000 miles). For fans of purely analog cars, the first two years of the 540i are just a bit more basic—1997 and 1998 model year cars have a cable throttle, and they lack VANOS, BMW’s variable valve-timing system. They’re also reputed to be a bit more reliable. The solenoid-actuated VANOS system isn’t exactly maintenance-free, and VANOS-equipped cars are also reputed to have timing chain issues necessitating the replacement of the chain on higher mileage cars.
The E39 was built at a time when BMW’s reputation as builders of the “Ultimate Driving Machine” was still largely intact. Its smaller contemporary, the E46 3-Series, is revered by enthusiasts today as the last really tactile and analog 3-Series, and the E39 is similarly rewarding. The life-cycle of the E39 was also incredibly long by today’s standards. Eight model years is an eternity, but the car remained desirable throughout, with just one subtle update in 2001. The facelifted cars are known to BMW fanbois as LCI (“Life Cycle Impulse” if you must know) sport new headlights, taillights, and grilles.
The E39 5-series was a tremendously influential car that was said to have been a favorite of Bob Lutz, (himself a former BMW employee), and the inspiration for later cars like the aforementioned G8, SS and CTS-V. With just 282 hp, and 310 lb-ft, it isn’t in the same league as those cars, but it only gives up about a second in the 0-60 run to them, and it costs about half what the GM super sedans do in today’s market.
Not surprisingly, you’ll spend more maintaining the BMW, in addition to the simple fact that it’s older and that the 540i’s V-8 lacks the anvil-like durability of a GM pushrod V-8. Longevity is heavily dependent on the maintenance of previous owners, so it pays to buy one with records. Then there’s the usual BMW stuff, like all of the plastic found in the cooling system, from overflow tanks to radiators. And why BMW can’t seem to make window switches and regulators like the Americans or the Japanese remains a mystery. At least the rear-wheel-drive architecture of the car means one less set of axles to replace, and a pan gasket that isn’t torture to remedy when it inevitably starts to leak. Overall, the E39 540i remains one of the most tactile, and rewarding to drive V-8 manual sedans on the planet, and the fact that you can pick one up for around $13,000 in late 2024 remains nothing short of miraculous.
I tested an 02 540i for a radio feature back in the day and loved it. Almost as good as an M5. So impressed was I that years later we bought a pampered 03 530i. Sadly it was written off in a collision. Another used 530i replaced it but had a cold idle issue which was annoying and after a time it was traded in.
I would really like another E39 sedan but the chances of finding a relatively low-meterage sedan not ravaged by annual Canadian winters is slim. There are some E39 540i sedans for sale around my parts, but I’d be leery of investing. My pockets are only so deep.
I had an e39 M5 for 3 years, it was a phenomenal car. My parents have had 3 e38 740s, all absolutely awesome vehicles, the M62 engine is a great performer and the chassis are just straight up special. That said, the cooling systems on the M62 are pretty terrible, plastic really is a poor choice for some components. Oddly the M5 was known for having a bullet proof cooling system as it was way uprated on the S62 engine.
I agree with everything in this article except for one thing, I’ve never heard of having issues with window switches on an e39 or any BMW of this vintage, and my family has owned 6 of them over the years. Where as I’ve definitely had lots of switch and regulator issues on the Oldsmobile and Honda I have owned.
Just bought my fifth e34 5er… Had a 99 528 msport for 5 years, which is unheard of for me. Sold it and realized how much I missed it. Now on my 2nd, a 2002 530i msport sedan in slate green with 5sp zf auto.. At 225 hp its equal to some earlier mustang v8s. Has some nice grunt to it and is a modern classic… Love my E39s… The e39 530s are even becoming popular on bring a trailer auction site.
I recently sold a ’01 530i Sport with three pedals and 85K miles. Its shortcomings included 2 replacement cooling systems and all four window regulators (drivers window twice). Otherwise, it was a great car and wonderfully fun to drive. I saved it for years to pass on to my grandson. At 16, he wants a newer BMW and will have to pay for it himself!
No offence but your grandson needs an attitude adjustment! It makes me sad that he said no to grandad’s incredible generosity. He might one day realize that the car you had offered him was superior in many ways to the newer model with a four cylinder, automatic transmission and dead steering. Ask me how I know!
No offense, but you need to come to reality.
That’s a 16 year old kid. If they are making any money from a job it’s likely not a ton and a 25-year old BMW with a plastic cooling system that has been replaced TWICE in 85k miles. You know how kids treat cars, and how they prioritize their money. that car would more than likely get driven into the ground.
Good for your grandson for having the courage to make his own path. He passed on your gift to earn the funds and buy his own car. That’s pretty cool that he cares enough to put in that work.
I bought (used) the M-sport / 6-speed version made in 2001. My understanding is there were only 1290 units like that imported into the US. Having been a BMW tech for some time, I can tell you this package is much better overall than the actual M5. The only thing dependable on the E39 M5 – is the check light illuminating about every 10th key cycle for 1 reason or another. At the time, I could have bought either, but wanted a car that could be driven AND be dependable.
Three things that wake up the performance of the 540 is eliminating the mid-muffler, flashing the ECM with a performance tune (ESC tuning is excellent btw) and installing an earlier large plenum intake. Those things together really makes the car come alive. The main issue for me was the trans syncros in 2nd / 3rd had seen better days and there were no parts available anywhere OR anyone to rebuild it. The only option was to buy new from BMW, which in 2014 was $5500. list. I will tell you I loved that car, but with a garage full of other stuff & toys the trans replacement + due for timing chain / guides equaled$$$ close to market value. Great cars, my opinion the best sedan of that era
A great car. A new 3 series is larger and heavier than this car.
Funny you would say that. Parked my 540 next to the wife’s M235 (manual, BTW!) and was surprised to see they are nearly the same size. They also drive similarly, though the turbo six is a little more dramatic hitting boost. The M62 is a tractor down low and through the midrange. And the handling is amazing. Love that thing and don’t think I could part with it. Every time I think I might, I drive it and appreciate it all over again.
I have a 2000 540i M Sport 210k miles. No rust. Still looks good in black over black. Weak spots include plastic cooling system ( on the 3rd radiator), failed VANOS and plastic timing chain guides (very expensive to repair). 6 speed is the same one used in the M5 and is a great tranny. Car is somewhat of a money pit but It drives and handles great and has ample power. Still drive it almost every day and love it.
I had a ’99 E39 528i for 10 years. Loved it’s look,handling and performance. There were only two things I hated about it: Getting “in it” and “out of it”. I’m 6 foot and 230.
I ordered / bought new the ’99 5sp 528 sport package car that I still have (just shy of 200k). I have had somewhere around 20 BMWs from my first (E30 5 sp I bought new and still have with 300k miles), several 2002s, E36 M3, Z3, ’83 733, and (4) E46 sedans, and a E46 Touring. My point – in my opinion, the E39 could easily be the best of what we’ve had / have. Proactive plastic coolant component replacement, regular fluid changes, recent VANOs rebuild (not bad at all), and the car continues to put a smile on my face. It’s not the 540 and am I just fine with the M52 2.8 six.
I have a 2000 540i Sport with 6 speed manual transmission and it is a wonderful car. However, as others have mentioned it does have its weak spots. Timing chain guides, VANOS, plastic cooling components and suspension designed for replacement after 100k miles. All of these items are easily do-able but as with any old BMW (and I have a couple others) you will need deep pockets for repairs if you don’t wrench on them yourself.
The more I read about BMWs, the more I’m glad I never owned one.
I’m convinced that Rob Siegel only owns them so he can have an inexhaustible supply of wrenching material to write about. Not that I don’t enjoy reading about his adventures, I’m just glad they’re not my adventures.
Never had one don’t know anything about them but wouldn’t you think that someone could come up with an aftermarket cooling radiator that would eliminate the danger of overheating and warping the heads?
I owned a 2003 540 M-sport (all the “M” equipment – sans the 400hp, finicky M engine).
I’ve owned nearly 40 collector cars and dozens of daily drivers in my lifetime. This car ranks in my top 3 Favorite cars and the only 4 door in my top 20. It is simply a fantastic, stylish, vehicle. Like all BMWs, maintence will kill you (I did all my own) – and with the M package and staggered wheels, it will eat tires. But man – is it worth it!!