BMW E38 7 Series buying guide: the classic luxury saloon
The E38 7 Series is one of the most admired BMW saloons. This guide covers its six-cylinder, V8, V12 and diesel engines, long-wheelbase versions, common issues and what to check before you buy.
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The E38 7 Series was launched in 1994 and is often called one of the most beautiful BMW saloons ever made. Its clean, elegant design, excellent comfort and strong engines made it the BMW flagship of the late 1990s, and it appeared in famous films of the era.
Today, the E38 7 Series is a modern classic with rising values for the best cars. But it is a complex luxury car, and neglected examples can be very expensive to restore. This guide explains the engines, versions, common issues and what to check before you buy.
A design that has aged well
The E38 was designed with a low, wide stance, simple lines and the classic BMW twin kidney grille. Unlike many cars of the 1990s, it still looks elegant today.
Inside, it offers a spacious cabin, comfortable seats and, for its time, advanced technology such as satellite navigation, xenon headlights on later cars and side airbags. The long-wheelbase versions, known as iL or Li depending on market, offer even more rear legroom.
Engines
The E38 7 Series was offered with several engines:
- 728i and 730i: six-cylinder and V8 petrol engines at the entry level, depending on market and year.
- 735i and 740i: V8 petrols, very popular for their balance of performance and smoothness.
- 750i: the V12 petrol, smooth and powerful but complex.
- 725tds, 730d and 740d: diesel engines, with the six-cylinder 730d and the V8 740d arriving in later years.
The 740i is often considered the best all-round choice, while the 750i appeals to enthusiasts who want the V12 experience.
E38 7 Series common issues
Points to check include:
- Cooling system: radiator, expansion tank, water pump and hoses. Our article on BMW cooling system problems explains the warning signs.
- V8 timing chain guides, which can wear and rattle on older engines. Our article on BMW timing chain problems explains the symptoms.
- Early V8 engine block coating: some early V8 engines had cylinder bore problems related to high-sulphur fuel. Most affected engines were repaired or replaced long ago, but history is important.
- Instrument cluster and climate display pixels, which can fail.
- Self-levelling rear suspension, if fitted.
- Window regulators. Our article on BMW window regulators explains them.
- Rust around wheel arches, jacking points and the boot lid.
The V12 750i
The 750i has a 5.4-litre V12 with two separate engine management systems, one for each bank of cylinders. It is extremely smooth and quiet, but it has twice as many components in many areas, such as ignition coils and some sensors. Repairs can be expensive, and specialist knowledge is important.
Buy a 750i only with full history and a pre-purchase inspection by a specialist who knows the V12.
Gearboxes
Most E38 cars have a five-speed automatic gearbox, while some six-cylinder and V8 cars were offered with a manual gearbox. Check that the automatic shifts smoothly, without slipping or harsh engagement. Fluid changes can help older gearboxes. Our article on BMW transmission fluid explains why.
Interior and equipment
The E38 interior was very luxurious for its time. Check the condition of the leather, the wood trim and the headlining. Test the electric seats, the climate control, the on-board computer and the navigation system if fitted. Some electronic parts are becoming harder to find, so working equipment adds value.
Running costs
The 730d and 740d are the most economical. The V8 petrols use more fuel but are popular with enthusiasts. The V12 is the most expensive to run and repair.
Parts prices for common service items are reasonable, but large repairs can exceed the value of a tired car. Budget for preventive maintenance and buy the best car you can afford.
Test drive checklist
On the test drive:
- Start the engine cold and listen for rattles.
- Watch the temperature gauge throughout the drive.
- Test the gearbox for smooth shifts.
- Check the instrument cluster and climate display for missing pixels.
- Check that the car sits level at the rear.
- Look underneath for rust and leaks.
Our complete checklist for buying a used BMW M car covers many checks that apply to any BMW.
E38 7 Series: points to remember
Values of the best E38 cars are rising, and enthusiasts pay more for low-mileage, well-documented examples in good colours. A cheap car may need more money than it is worth to repair. Look for complete service history, evidence of cooling system work and an inspection report from a specialist.
Original and unmodified cars are usually the most desirable.
Is the E38 7 Series a good buy?
A good E38 7 Series is a beautiful, comfortable and satisfying classic BMW. The 740i is a strong choice for most buyers, the 730d is the most economical and the 750i is a special car for V12 enthusiasts.
Buy on condition and history, keep up with maintenance and enjoy one of the most admired BMW saloons.
BMW E38 7 Series key facts
| Item | Details |
|---|---|
| Production | 1994 to 2001 |
| Body | Four-door luxury saloon, standard and long wheelbase |
| Petrol | Six-cylinder, V8 and V12 engines |
| Diesel | 725tds, 730d, 740d |
| Gearboxes | Five-speed automatic, manual in some versions |
| Status | Modern classic with rising values |
| Key checks | Cooling system, timing chain guides, pixels, rust |
Frequently asked questions
Is the E38 7 Series reliable?
Well-maintained cars can be dependable, but the cooling system, V8 timing chain guides and electronics need checking.
Which E38 7 Series engine is best?
The 740i is a strong all-round choice, while the 730d is the most economical.
Is the E38 750i expensive to run?
Yes, the V12 is complex and repairs can be costly.
Is the E38 7 Series a classic?
Yes, many enthusiasts see it as a modern classic, and prices for the best cars are rising.
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