BMW M5 E39 buying guide: what to check before you buy

This BMW M5 E39 buying guide is for anyone who dreams of the V8 M5 that many people call the best M5 ever made. Built from 1998 to 2003, it combines a 400 hp V8, a six-speed manual gearbox and a classic, understated saloon body.

Good E39 M5s are becoming rare and prices are rising. In this guide we explain the most important checks, the common problems of the S62 engine and the car, the differences between early and late cars, and how to buy with confidence.

Why the E39 M5 is so special

The E39 M5 was the first M5 with a V8 engine and the first built on the regular production line in Dingolfing. Its S62 engine has 4.9 litres, double VANOS and 400 hp at 6,600 rpm, with 500 Nm of torque.

It was sold only with a six-speed manual gearbox and rear-wheel drive. It reaches 100 km/h in about 5.3 seconds and its top speed is electronically limited to 250 km/h. At the time, it was one of the fastest four-door cars in the world.

But numbers are only part of the story. The E39 M5 is admired for its balance between comfort and performance. It is quiet and refined on the motorway, and precise and strong on a winding road. The interior is high quality, and the design is elegant and timeless.

About 20,000 were built. Today the E39 M5 is a true modern classic, and the best cars are valued highly by collectors and drivers.

Early and late cars: the differences

In 2000 the E39 range received a facelift. The M5 got the new headlights with the famous "angel eyes" light rings, new rear lights and updated interior details. Some technical details were also improved over the production years.

Many buyers prefer the later, facelifted cars for their looks and the updates. But early cars can be just as good if they have been well maintained, and they are sometimes more affordable.

More important than the year is the condition and the history. A well-documented early car is a better buy than a neglected late one.

Check the equipment as well. Most cars are well equipped, but options such as the navigation system, sunroof, rear sunblind, heated seats and the colour combination affect the value and your enjoyment. Original, attractive colour combinations are particularly sought after.

Engine: the S62 V8

The S62 is a strong engine, but it has some well-known points to check:

• Timing chain guides and tensioners. The plastic guides can wear over time. A rattling noise at a cold start can be a sign. Ask if they have been replaced.
• VANOS. The double VANOS system can develop faults with age. Rough idle, lack of power and fault codes are typical signs.
• Cooling system. The radiator, expansion tank, water pump and hoses age with time and heat. An overheated S62 can suffer serious damage, so cooling parts are often replaced preventively.
• Throttle control and the EML light. The S62 uses an electronic throttle system. An EML warning light in the instrument cluster is a classic E39 M5 fault and should be diagnosed properly.
• Rod bearings. Less common than on later M engines, but on high-mileage cars a check or preventive replacement is sensible.
• Oil leaks from the valve covers, the oil filter housing and the sump.

Listen to a cold start, look for warning lights and ask for a diagnostic scan.

Gearbox, drivetrain and chassis

The six-speed manual gearbox is robust. Check that all gears engage smoothly, that the clutch does not slip and that the dual-mass flywheel does not rattle at idle. A heavy or high clutch can mean that replacement is due.

Listen for noises from the differential and the rear axle, and check the driveshaft and its centre bearing for vibration.

The suspension of the E39 M5 has many bushings and joints. With age, the front control arms and their bushings wear, which causes vague steering and vibration under braking. Check the dampers and springs too.

The brakes are strong but heavy-duty parts are expensive. Look at the condition of the discs and pads and ask when the brake fluid was last changed.

Finally, check the steering: it should feel precise, without play around the centre.

Body, rust and electrics

E39s are well protected against rust, but age is catching up. Check the jacking points, the sills, the bottom of the doors, the boot lid around the number plate lights and the wheel arches. Look under the car for corrosion on the floor and the subframe mountings.

Accident repairs are common on older cars. Look for paint differences, uneven panel gaps and overspray on seals.

The electrics of the E39 era have some known issues. The instrument cluster can lose pixels in its display, the navigation screen can fail and window regulators can break. Check every function: lights, windows, mirrors, seats, air conditioning, navigation, the on-board computer and the parking sensors.

Inside, the leather should match the mileage. Worn bolsters, a shiny steering wheel and a worn gear knob on a low-mileage car are reasons to ask questions.

BMW M5 E39 buying guide: history, inspection and price

The service history is one of the most important parts of an E39 M5. Look for regular oil changes with the correct oil, and for evidence of the big jobs: timing chain guides, cooling system, VANOS, suspension and clutch.

A car with these jobs done and documented is worth more. A car without them should be cheaper, because these repairs will be needed.

Always have a pre-purchase inspection done by a specialist who knows the S62 engine. It is a small cost compared with the price of the car and the possible repairs.

When you judge the price, look at the whole picture: condition, history, mileage, colour, equipment and originality. Unmodified, original cars in good colours are the most desirable. A well-chosen E39 M5 is not only a great car to drive, but also a car that is likely to keep its value.

BMW M5 E39 facts

Item	Details
Production	1998–2003, Dingolfing
Engine	S62 4.9-litre V8, double VANOS
Power / torque	400 hp at 6,600 rpm / 500 Nm at 3,800 rpm
Gearbox	6-speed manual only, rear-wheel drive
0–100 km/h	About 5.3 seconds
Top speed	250 km/h (electronically limited)
Units built	About 20,000
Main checks	Timing chain guides, VANOS, cooling, EML light, rust

Frequently asked questions

Is the BMW M5 E39 reliable?

It can be very reliable when maintained properly. The main points to check are the timing chain guides, the VANOS system, the cooling system and the electronic throttle (EML light). Service history is essential.

How much horsepower does the E39 M5 have?

The S62 4.9-litre V8 produces 400 hp at 6,600 rpm and 500 Nm of torque. With a six-speed manual gearbox, the car reaches 100 km/h in about 5.3 seconds.

Did the E39 M5 have an automatic gearbox?

No. The E39 M5 was only available with a six-speed manual gearbox and rear-wheel drive.

Which E39 M5 year is best?

Many buyers prefer the facelifted cars from 2000 onwards for their looks and updates, but condition and history matter more than the year.

What is the EML light on an E39 M5?

The EML light shows a fault in the electronic engine power control, usually related to the throttle system. It is a well-known E39 M5 issue that should be diagnosed with the correct equipment.

Sources

• BMW Group Classic – model history of the BMW M5 (E39)
• BMW Group PressClub – historic press material on the BMW M5 (E39)
• BMW M5 (E39) owner's handbook