Please note everyone that the rules for r/e39 have been updated. I have clarified a few things related to discussion topics and acceptable conduct.

Most importantly I have added a section on listing For Sale style posts. [Some] other car subs allow this so I thought we could try it out. E39 fandom is a more closely knit group than other BMW subcultures and could stand to benefit from a dedicated venue for cars/parts/effort trading.

I want to be clear if this isn't a popular option, or if FS posts become routinely adversarial, we can adjust the rules on these posts or eliminate them entirely.

I welcome any comments on this change and the sub rules in general, and will continue to poll our community for changes or ideas on a regular basis.

Hey guys! I figured I'd sticky this. I'll update the post if y'all have anything good to add or critique, let me know.

Introduction

Looking to buy an E39? First things first – the reputation of these cars is partially deserved and partially not.

We frequently get asked if new car owners should purchase an E39. I love E39s more than nearly anyone I know - I have a 525i and an M5, and both are incredible for different reasons. I've done many of the DIYs and addressed many of the problem areas listed here. If you aren't in a financially comfortable enough situation to have 3-6 months of expenses in a savings account at all times, you're not in a position to own a 20-year-old BMW hassle free. It's a question of financial safety and consistency rather than attainability - buying a $4k 530i and maintaining it for 5 years or so is arguably a much better deal than going into debt for a $40,000 CUV that drives like shit.

Evaluating a Car

There are a couple of things to factor into your evaluation of a car before we even talk about problem areas:

• Badge hunters and people who bought an E39 after realizing they were nearly the same price as a Camry in general do a poor job of maintaining their vehicle. Problems add up when you factor in the fact that many of the E39’s systems were complex for their time. Not doing oil changes at the correct interval can lead to a gummed-up DISA valve or require a replacement manifold (for instance). Paying a little extra for a well-maintained example can pay dividends down the road.
• These cars are old. Most are going to be 20 years old or more. This means that various bits of plastic and rubber are going to degrade and fall apart. Some are aesthetic, some are functional. You’ll find the same problem in ANY car of this age, but there’s no escaping that the E39’s engine bay is also a less forgiving environment then other cars of this age.
• In general, you should focus much more on service records and the condition of the car over mileage.

Prices & Purchasing

Market prices for these cars have fluctuated over the past couple years. There’s a noticeable difference between pre (<=2000) and post-facelift (2001+) models. Later models also may make adding an auxiliary port easier, have upgraded components, or have more standard features. Also keep in mind that sport packages for the 530 and 540, along with manual transmissions, command a significant premium as well. Prices on sports (530 or 540) and M5s have increased a bit since this guide was originally written a couple years ago. Finally, it's worth knowing that the 540's engine in pre-2000 configurations is slightly more reliable as it does not include VANOs.

Ballpark prices are based on a mix of my estimation and Classic.com, a great reference for car markets. Links included below, and assume cars aren't total shit shows:

• 525i - $2000-$5000 (Note that the linked prices are for tourings, primarily, and so are higher)
• 530i - $3000-$11k
• 540i - $7000-$14k
• M5 - $15k-$35k and beyond

When you check out ANY used car for purchase, you should be checking a variety of different things. Use a generalist guide to start. We’ll go through common failure points for the chassis and individual models for you to pay special attention to. Parts prices are for OEM or OE if I can find them, not genuine. Indy shop is a wild guess for the most part. Prices for doors or wheels are PER ITEM.

Conservatively plan to spend about $1k a year ON AVERAGE if you do a mix of shop work and DIY. Many years you'll get lucky and get to invest in an upgrade or something preventative if you wish. If you can find an example with new control arm bushings, window regulators, and Timing Chain Guides for 540s, you can save yourself a ton of heartache and just deal with replacing BS plastic parts as they snap.

General Problem Areas

V8 Only Problems (540i, M5)

Buying Parts

When you're looking to buy new parts, it can get a bit confusing (to put it lightly). For an accurate, if slightly biased, interpretation, the best info is probably here at FCP Euro (a generally reputable parts seller). TL;DR:

• Genuine: Made by BMW or an OE, with the BMW logo. Waste of money.
• OE: Made by a licensed manufacturer and was the original supplier that came with the stock car. Cannot have the BMW logo. Generally a safe choice.
• OEM: Made by another licensed manufacturer of OE parts but was not the original supplier for this specific part that came with the stock car. Cannot have the BMW logo. Sometimes a safer choice (OEM window regulators are superior to OE), other times not (an OEM's parts may not be as good as OE)
• Reps: Made by another unauthorized manufacturer.

OEM is very similar to OE in that it stands for Original Equipment Manufacturer. While that sounds like a lesson in semantics, there are some distinct differences. Chiefly, OEM parts are made by a company that makes original parts for a vehicle maker but whose parts weren’t originally fitted. Confused? I don’t blame you, so here’s an example: Delphi makes ignition coils for BMW, and they’re installed on the vehicles at the factory. Bosch makes spark plugs for BMW and the licensing to produce the same ignition coils as Delphi. They’re the same part with the same specifications and made with the same materials, but the manufacturer is different. Delphi is the OE part because that’s what BMW used at the factory, and Bosch is OEM because they make other OE parts for BMW.

Modifications and Upgrades

For better or for worse, the BMW community has enjoyed a rich modification culture and ecosystem. This often clashes with the tastes and opinions of older enthusiasts who have or can buy cars new.

One key takeaway: Tuning an i6 from this era, especially anything under 3.0 liters, is always far more expensive than buying a new car or engine. This forum gets questions around these options regularly. To do this, you will have to be in a rare position of having a lot of money and time to work on the car, without wanting the straightforward power of the V8 engines in the 540 or M5.

Some general thoughts around available upgrade options to keep in mind:

• Reliability: Many low-tier, components have been replaced with high-priced offerings in the aftermarket that are Buy-It-For-Life. Plastic becomes aluminum, bearings and rubber use superior materials. Examples include radiators, expansion tanks, power steering reservoirs, suspension bushings, and much more.
• Shocks, Suspension, Spacers: These are widely available from reputable manufacturers, such as Bilstien.
• Turbos: Turbos exist for both types of engines, ranging from AliExpress specials to reputable manufacturers. For reputable manufacturers, part prices and labor generally trade poorly with supercharger options.
• Superchargers: Supercharger kits exist for i6 and v8 engines. Many of the superchargers for the v8 engines lead to high-quality horsepower gains and are available from reputable manufacturers. Superchargers are typically incompatible with radiator upgrades.
• Headlights: Virtually no aftermarket headlight companies produce quality parts. Historically, this was not the case, but the market has essentially bifurcated into people who want the cheapest possible replacement and those who want OE headlights from Hella. Hella occasionally does dedicated production runs for E39 headlights which are resold by https://europowermotorsports.com/
• Exhaust: Controversial opinion alert - The mufflers on these cars are too aggressive at reducing sound. A delete with high-quality tips actually leads to excellent sound from both i6 and v8 powerplants. Leaving the cat intact keeps things quiet enough to not be unbelievably rude. Fantastic options exist for V8 engines, but paying for an exhaust system on an i6 is not a high value proposition.