buyer's guide

Brand value
The E39 5 Series is the perfect embodiment of the classic BMWbrand values: sportiness and
agility, quality and luxury. Plentiful on the used-ear market, it's also a terrific bargain.
By Alexander Palevsky and Jackie Joure' Artwork by Steven Cavalien
m
arwin's theory of evolution die-
tates that a species continually
improves over time, adopting and
retaining favorable characteristics while
simultaneously eliminating unfavorable
ones. Darwinism does not, however,
always apply in the manmade automotive
kingdom, where newer models are not n e c ~
essarily more desirable than their less
"evolved" ancestors. At any point in auto-
motive history, certain specific models
attain a sense of perfection and "rightness"
that somehow eludes their successors. One
such model is unquestionably the E39gen-
eration BMW5 Series.
The E39 followed in the footsteps of
another very good BMW, the E34 5 Series
of 1989-1995. In fact, the E39 did not really
alter the E34's successful formula in any
significant way. Instead, it brought new
technology and sophistication to all aspects
of the car, improving it in every quantifi-
able area without diluting the strong sport
sedan spirit that had defined each 5 Series
since the original E12.
Both the sedan and wagon (or
"Touring") were styled by Joji Nagashima
under the direction of BMW design legend
Claus Luthe, who had also overseen Ercole
Spada's design for the E34 models. While
some were critical of the F39's conservative
lines, few denied that its shape was tasteful
and well-executed. The interior once again
emphasized logic and clarity; retaining the
driver-oriented dashboard and impeccable
ergonomics that had become a BMW hall-
mark. But the E39 showed marked improve-
ments to every surface and texture, as well
as build quality that easily met or surpassed
the standard set by any of BMW's rivals.
Classic sixes or powerful V8s
Like the previous 5 Series, the E39 was
again offered with either inline-6 or VB
engines, the latter forming the basis for the
mighty 394-hp M5. Both engines were evo-
lutions of existing powerplants, revamped
for more torque and fewer emissions, and
both were again offered with a choice of
manual or automatic transmissions (MS
excepted). Though the proven MacPherson
strut front suspension design carried over}
BMW abandoned its trusted semi-trailing
arm rear suspension in favor of a more
complex multi-link system similar to the
one fitted to the 3B 7 Series. In addition,
both front and rear suspension cOmp0t1ents
were now made almost entirely of alu-
minum for reduced unsprung mass.
This, in part, helped keep the curb
weight of the larger E39 5 Series down to
Blmmer AUGUST 2005 89
The E39 pantheon: From 525 to M5
Model Body Prod. dates Engine Horsepower/torque
- 52BI sedan 1997-1998 2.8-lite, M52 Inline-6 190 hp/206 Ib-ft
5281 sedan 1999-2O:xl 2.8-lite, M52 TV Inline-6 193 hp/206Ib-ft
5281 Wagon 1999-2O:xl 2.8-lite, M52 TV Inllne-6 193 hp/206Ib-ft
5251 sedan 2001-2003 2.f>.lite, M54lnline-6 175 hpll84 Ib-ft
5251 Wagon 2001-2003 2.f>.lite, M54 Inline-6 175 hpll84 Ib-ft
5301 sedan 2001-2003 3.G-liter M54 Inline-6 225 hp/214 Ib-ft
The E39 reIntroduced the M5 to North Americo offer 0 sixyear absence, trading the pre-
vious race-bred Inline-slxes for a 4.9-lIler V8 producing nearly 400 hp. Mated to a stan-
dard 6-speed manual gearbox. the M5 could reach 60 mph fn under five seconds, The
M-tuned chassis Included stiffened suspensIon a unIque steering rock and massive four-
wheel vented disc brakes behind 18-lnch wheels. A subtle aero package and quad
exhausl tips distinguished the model from lesser E395. Standard eqUipment wos extensive.
IncludIng sateJlite navigation and several choices of leather and wood trims. Aside from
a sflght focefift and minor Interior upgrades (or 2001. little changed over the four yeors
that the E39 M5 was produced. It proved to be the most popular M51n North America by
a large margIn. Ivlth nearly 5.000Imported.
the most affordable and fuel-efficient E39s
sold in North America, but they are also
the most lightweight and nimble due to
their more extensive use of aluminum and
more responsive steering rack. The six-
cylinder cars also tend to have fewer main-
tenance issues. The 540i, though not quite
as balanced and communicative as a six-
cylinder car in the corners, packs enough
low-end grunt to outrun many exotic
sports cars in a straight line. And then
there is the E39 M5, a car that redefined the
super sedan segment with nearly 400 hp
and a chassis that is highly entertaini.n& if
slightly aloof, when pushed to the limit.
. One of these models is sure to suit just
about every need, and few cars on earth
make more sense as a used purchase than
an E39.
525i, 528i & 530i: Much more
thon the sum of their parts
The 528i was initially the sale six-cylin-
der E39 model, replacing bolh the E34 5251
and the V8-engined E34 530i. Its 2,793cc
MS2 engine, an evolution of the 2,494cc
MSO TU, had debuted one year earlier in
the E36 328i. The M52 retained the iron
block and two-stage VANOS variable valve
timing (intake stroke only) of the earlier
MSO TO motor but gained revised
camshafts, valves, valve lifters and spring
seats in addition to the added displace-
ment. Horsepower increased by just one to
190 hp at 5,300 rpm but torque was boost-
ed considerably to 206 Ib-It of torque at
3,950 rpm (up from 184 Ib-ft at 4,200 rpm).
The engine could be mated to either a 5-
speed manual gearbox (the same ZF unit
used in the E36 M3) or an optional GM-
sourced 4speed automatic, both combined
with standard ASC+T traction control. In
either case, the 528i was appreciably quick-
er than the E34 525i, with a 0-to-60 mph
time of just over seven seconds for the
manual version (roughly the same as an
equivalent E34 530i), This was more than
adequate performance for BMW's entry-
levelS Series, especially considering that
the modern chassis provided a far better
ride and much more responsive handling
than any mainstream 5 Series ever before,
Braking was also more than adequate, with
1l.7-inch vented rotors on all fOUI wheels,
Standard equipment was generous but
not extravagant, including power front
seats with driver-side memory, a dual-zone
climate control system, a 10speaker audio
system and a multi-function Jeather-
wrapped steering wheel. Leatherette
upholstery and "technical surface" interior
trim were the base materials, but most cars
were equipped with the optional Premitm1
394 hp/368 Ib-ft
282 hp/310 Ib-ft
282 or 290 hp/3241b-ft
282 or 290 hp/324 Ib-ft
which was later integrated into the more
advanced Dynamic Stability Control (DSC).
The E39 5 Series can be broken down
into three distinct groups: six-cylinder
models, the 540i and the M5. Most buyers
will be perfectly content to own a six-cylin-
der 525i, 528i or 530i. Not only are these
4.4-lIte, M62 V8
4.4-llle, M62 TV V8
4.4-lite, M62 TV V8
4.9-lite, S62 V8
1997-1998
1999-2003
1999-2003
sedan
sedan
Wagon
sedan
5401
5401
5401
The six-cylinder E39 models are less powerful than the upmarket V8 cars but also weigh
less, use on aluminum front 5ubframe and benefit from Q rack-and-pInion steering sys-
tem. giving them nearly the agility and responsiveness of a 3 Series. The early 5281 sedan
uses the fron-block engIne from the E36 3281, while the loter sedans and all wagons use
the aluminum-black VANOS motor shared with the E46 3281. All 528i models were offered
with elfher 5-speed manual or Qutomatic transmissions. the lotter of whfch changed from
a 4-speed to a 5-speed Stepfronlc starting with 9/99 production. Leathereffe upholstel)'
was always standard. but most cors have PremIum Package with leather seating and
Vavana wood trim. Sport Package wos Introduced for 1998 buf could nof be combined
with Premium until model year 1999. Coinciding with a mild facellft, the 5281 was
replaced by the less expensive 5251 (sedan or sport wagon) and more powerful 5301
(sedan only) for MY 2001. Equipment levels varied slightly between the two models but
neither differed much from those of the 528/, More standard features were added fOf
each of the final two model years.
MS
The 5401 Is the sale V8-powered E39. aside from the exotic MS. Early sedans have less
torque than the later VAN05-equlpped motors. From 2002. M62 TV engines produced 290
hp. up from 282. sedans could be had with a 6-speed manual or a 5-speed automatic
transmIssion- the latter equipped with steptron/c shfftfng and a lower leofaxle ratio starl-
Ing with 1999 models when poired with Sport Package. this same transmission was the
only one offered on sport wagons. All 540i sedans and wagons hove generous standard
equipment Including leather upholstel)'. Burl Walnut wood trim and a power moanroof.
Sport Package debuted as standard eqUipment with the 1997 6-speed manual sedan
but became optional on automatic-equipped models slarting with MY /998. Sport
Package was enhanced for 2tXJ3 with M-Technlc aero package, retuned suspension
and (on sedans only) 18-/nch M Parallel Spoke alloy wheels.
about that of the smaller E34 models. Six-
cylinder E39s further benefited from an alu-
minum front subframe and more precise
rack-and-pinion steering with a variable
ratio. All E39 S Series sold in North
America were equipped with Automatic
Stability Control plus Traction (ASC+T),
I
I
90 AUGUST 2005 Blmmer
The E39 sedan
Package upgrade consisting of real leather
and Vavona redwood trim, as well as cross-
spoke alloy wheels.
New options for the 39 5 Series includ-
ed an upgraded 440-watt audio package,
16-way "comfort" front seats (only avail-
able with the Premium Package), a power
rear sunshade and satellite navigation. The
optional Sport Package arrived for 1998
and brought a stiffer, lower chassis, 17-inch
cross-spoke alloy wheels with 235/45ZR-17
high-performance tires and Shadowline
(dechromed) exterior trim.
The 528i Touring (now known as the
"sport wagon" in the U.S.) debuted for 1999
and was offered with essentially the same
drivetrain and equipment choices as the
sedan, including PremitUll Package (upgrad-
ed to include larger 16-inch wheels) and
Sport Package (upgraded to include an M
three-spoke steering wheel) or a (newly-
available) combination of the hvo. The novel
dual-panel power sunroof that had been
available on the E34 wagons did not carry
over to the 39, but there was an optional
retractable floor for the cargo area, designed
to ease the loading of heavy objects.
A number of revisions to the M52
engine (now known as the M52 TU for
"Technically Updated") were also intro-
duced for 1999, including the addition of
Double VANOS continuously-variable
valve timing on both the intake and
exhaust strokes, an aluminum engine block
and a dual-resonance intake system. These
improvements yielded just three additional
horsepower but broadened the torque
curve (though not the peak torque figure)
considerably. In addition, Dynamic
Stability Control (DSC) became an optional
upgrade over ASC+T.
The final 2000 model year for the 5281
sedan and sport wagon began with JWle
1999 production, at which time DSC
became standard, two-stage "smart"
airbags were introduced and a few small
equipment upgrades were added. But the
biggest improvement was not introduced
wltil three months later, when the outdated
4-speed automatic transmission was
replaced by a more advanced 5-speed unit
with both sport and Steptronic (manumat-
ic) shifting options. For anyone in the mar-
ket for a seli-shifting 528i, we highly rec-
ommended searching for one of these late
2000 models with the Steptronic box.
Though BMW claims the same perform-
ance and mileage figures for either trans-
mission, the 5-speed is much more willing
to swap gears and makes far better use of
the engine's power.
The 528i was replaced for the 2001
model year by the 525i and 530i models.
Though the 525i could be had as either a
sedan or sport wagon, the 530i was offered
only as a sedan in North America.
(Considering that the 530i sedan outsold
the 525i sedan by about 25 percent in the
U.S. market, this proved to be an ill-con-
ceived marketing decision that BMW of
North America will thankfully not be
repeating with the forthcoming E60 530xi
sport wagon for 2006.)
All were powered by an improved M54
inline-6 incorporating a fully electronic
"drive-by-wire" throttle system, a revised
intake manifold and increased valve lift.
The smaller 2,494cc version fitted to the
more affordable 525i produced 184 hp and
175 lb-ft of torque, while the upscale 530i
upped displacement to 2,979cc for 225 hp
and 214 lb-It of torque. Again, both 5-speed
manual and 5-speed Steptronic automatic
transmissions were available on all models,
and the exceptional chassis dynamics of the
previous 528i continued unchanged. Engine
size aside, the 525i and 530i were mechani-
cally identical, with the sole exception o( the
530i's larger 12.8-inch vented front disc
brakes (identical to those of the E39 5401
except (or their altmlinum calipers).
A subtle facellft (body-color rub strips,
"jeweled" tai11ight lenses, revised head-
lights with glowing "angel eyes" outer
rings and some new alloy wheel designs)
coincided with the introduction of the new
models. On the inside, an in-dash CD play-
er finally appeared, and there was a
revised satellite navigation system incorpo-
rating a larger screen, but otherwise stan-
dard and optional equipment carried over
more or less unchanged &'om the 528i.
Production of the 525i sedan, 525i sport
wagon and 530i sedan continued for 2002
and 2003, with changes limited to new
exterior colo.r choices and increased stan-
dard equipment. Though even the entry-
level 525j makes a fine daily driver, the
530i sedan is unquestionably the most
desirable of the 6-eylinder E39 range, if not
the best E39 of them all.
540i: Serious muscle,
serious luxury
BMW offered the 540i sedan for every
one of the E39's seven model years (1997.
2003) and the 540i wagon from 1999 to
2003. Though burdened with 300 pounds
of added weight and less precise recirculat-
Ing ball steering, the E39 540i offset the
reduction in overall handling finesse with
an abwldance of grunt from its 4,398cc alu-
minum-block V8.
In addition to being 400cc larger than
the four-liter M60 V8 used in the E34 540i,
the M62's block was coated with Alusil, a
silicon-impregnated material that does not
deteriorate (like the early Nikasil M60
blocks) when subjected to sulfur-rich fuel.
Early models produced 282 hp at 5,700 rpm
and 310 lb-ft of torque at 3,900 rpm, while
the VANOS-equipped M62 TV version
introduced for 1999 developed an identical
282 hp (upgraded to 290 hp for 2002) at a
lower 5,400 rpm but also a more robust 324
lb-It of torque at just 3,600 rpm.
Three different tri'lnsmission choices
were available for the 540i, and it is often
Blmmer AUGUST 2005 91
E39 Maladies: From major to minor
judging from letters flowing Into Tech Q&A the E39 5 Series repre-
sents an Improvement In quality over the EM 5 series it replaced. If
Is. of course. a highly electronic cor. as ore all modern Blmmers. but
while that makes the car more compl1coted overall it also makes
the E39 easier for dealership technicians to diagnose electronically.
Below is a short list of problems common to the E39. which apply
equally to 6 and V8s except where they appiy to engines.
va engine woes: BMW's va engines do not represent a shining
moment In terms of durability. Although the M62 V8s used In the E39
540i are not subject to the some problems with cylinder bores that
affect those used In the earlier E34s. we see problems with water
pumps. all leaks. the all separator at the bock of the Intake mani-
fold. plastic cooling fon disintegration. cracked plastic engine pul-
leys and all pumps (whose bolts bock out and couse a loss of all
pressure). Check these things on any purchase. We also see the
occasional VANOS failure. offen characterized by poor Idle quality
when the unit sticks In the advanced position.
The 562 used In the E39 M5 Is stili a question mark In long-term
durability. simply because we hoven" heard from enough hlgh-
mileage owners. We have hod reports of high all consumption.
though. and If you are running BMW's factory all. we recommend
using the IOW-60 product rather than 5W-3O unless you encounter
extreme cold temperatures. like those below DOE
Noisy hydraulic litters: It Is normal to hear the occasional
hydraulic lifter tick-tick noise in any engine so equipped. This ls the
price we pay for not having to adjust valves anymore. There Is no
need to replace the lifters unless the noise Is excessive,
Tune-ups: Forget about the foclory l00.<XXl-mlle tune-up Interval.
Replace the air filter and fuel tllter every 30.000 miles. the spark
plugs every 6O,(XX> miles.
080-11 oddities: BMW trMo heads will note that there was no U.S.
5 series tor MY 1996. This Is because BMW was burning the midnight
all to sort out the vagaries of the new federally-mandated Onboord
Diagnostics System (OBD-II). The chief function of 080-11 Is to pre-
vent tampering with emissions equipment and to monitor the vari-
ous control systems, IncludIng the enhanced evaporative emissions
system and exhaust gas recirculation system.
For dealerships, OBD
4
11 is a veritable cornucopia, because It cre-
ated many more fault codes that can set off the "check engine
IIghl. All require computer deciphering. but very few actually affect
drivabllity. The dealer. of course, charges to read the codes. and
then you have to pay to replace whatever obscure part offended
the system. OBDII Is not consumer
4
frlendly. Consumer friendliness
could have been achIeved by providing precise Information about
which port failed directly to the driver via some sort of Information
display in the dashboard-or even via a US81nterfoce with a laptop
computer. But that would make too much senSe, and It would also
provide too much choice In determining whether to effect repaIrs.
Cooling system 'ailures: Preventive water pump, mechanical
thermostat. cooling fan, fan clutch and thermostat housing
replacements are strongly recommended every 60.000 miles.
Preventative radiator and pulley replacement Is less strongly recom-
mended every 90.000. These components all have consistently high
failure rates and can cause damage to other components. Includ-
Ing the engine. We have no real opinion on electronic thermostats;
they're stili too new.
Manual gearbox and differential failures: Now that 8MW dealer-
ships refuse to change manual georbox and differential oils, reciting
their "lifetime fm mantra. we are starting to see faHures of these
92 AUGUST 2005 8immer
components In the l00.<XXl-mile plus range. This applies to all gear-
boxes. 5- and 6-speed. and all differentials. open and limited I
recommend manual gearbox and differentlal 011 changes every
30.000 miles. if you bring the car to on independent shop. I would
also highly recommend Red Une MTL (preferable) or Red Une 04
ATF In the manual gearbox and Red Une 75W-9O synthetic gear all
In the differential. with the some draIn Intervals.
We also see occasional cases of loss of fifth gear detent on the
5-speed manual gearboxes. This ls due to a sticking detent piston.
The fix Is simple and does not require gearbox disassembly. though
It does require removal of the gearbox from the car. Once In a
while. we see problems with dry Input shoff splines on the gearbox.
which Inhibit clutch action and theretore gear changes. This also
requires gearbox removal In order to lubricate the splines and other
clutch ports with a high-quality moly grease.
Automatic transmission failures: These tend to occur between
8O.1XXl and 120.000 miles on all contemporary BMWs. The transmis-
sIons used on VB-powered cars are qUite expensive.
General electronic failures: In particular. we see problems with
door lock HVAC control modules. Ilghtlng conkol modules
and electronic Instrument clusters. Howevet the E39 does seem to be
a lot easier fOf technk:lons to diagnose forget about try-
Ing to diagnose elec/ronlc [Xoblems and driveobllily issues othe<wise.
Weak boillolnls: Check boll Joints os well as tie rod ends once a
year by squeezing them top to bottom with a 16-lnch pair of
Chonnellock pliers. A good component should not move at all: If
there's ploy. fhrow II away. Replace boll Joints with new upgraded
styles from BMW.
Sport Package tire wear: We've gotten a number of letters
regarding excessive tire wear and noise on E39s equipped with
Sport Package. 8MW does a certain disservice to buyers by not
clearty Informing them exactly how these heavy cars are made to
handle so well. which Is by creating a lot friction at the tires that In
turn creotes tlre noIse and a high degree of wear. An E39 con easily
tear through a set of ultra high-performance summer tires In 7.(0)
miles. especially the reors. That's the price you poy to make a big.
heavy limo handle like a sports cor-which will only happen through
the use of large contact patches ond aggressive suspension geom
etry that uses a lot of negative comber. (To learn more about the
effects of suspension alignment and negatIve camber In particular.
visll www.tlrerock.comltiresltlretech/general/olign.jsp.)
To reduce tire weor. you'lI have to do a few things that will also
reduce cornering performance: adjust camber as close as possIble
to non
4
Sport settings, run harder tIres and use tIres and wheels In a
narrower size. such as the standard 225/55-16.
Jacking difficulty: Simply Jacking up on E39 and supporting It on
four Jack stands can requIre no small amount of finesse. As Brett
Anderson at Koala Motorsport (www.koalomotorsport.com)
explains. "The best E39 5 Series fronl/rear Jacking points are the
tubular cross brace In front. which has a section right In the mIddle
designed for a jock to sit under. and the differential case or the
steel rear suspension carrier In the rear on older models, Make sure
you don'f have a pressure point on the jock-like a lip-that will
damage the differential housing. Put a block of pressure-treated
wood or a hockey puck on the Jock to spread the lood.-
To which we would add: No warranties gIven or Implied. If you
hurt yourself or your car. It's not our fault-It's yourfault. Do not even
think about Jacking up your cor by yourself If you hove never done
so-find an experlenced mentor to show you how.-Mike Miller

The E39 M5
quite difficult to determine when and
where each version was used. Only the
540i sedan was offered with a Getrag 6-
speed manual transmission, which was
always bundled with the Sport Package.
All non-Sport Package sedans were fitted
with a ZF S-speed automatic (without
Steptronic shifting) mated to a relatively
tall 2.81 final drive. This allowed BMW to
Federalize the 540i without making it sub-
ject to the added Gas Guzzler Tax. The
same gearbox was available with Sport
Package for 1998; the package was upgrad-
ed for 1999 to include a Steptronic version
of the same transmission with a shorter
3.15 final drive. This unit was fitted as
standard equipment to all 540i sport wag
ons regardless of whether or not they were
equipped with Sport Package. All configu-
rations are good for a 0-to-60 mph time of
around six seconds and an electronically-
limited top speed of either 128 mph (non-
Sport Package) or 155 mph (Sport
Package). Considering that only chrome
grille slats and unique alloy wheels distin-
guish the 540i from other E39 models, this
makes it a very understated performance
sedan (or sport wagon).
Over $10,000 separated the 540i from its
six-cylinder siblings when new, so BMW
understandably equipped the V8 model
with more than just a larger engine. All
540i models have leather upholstery, a
power sunroof, Burl Walnut wood trim
and an extended on-board computer. These
added standard features negated the need
for a Premium Package, though individual
options such as Xenon headlights (stan-
dard from 2000), Comfort seats, satellite
navigation, premium audio and Park
Distance Control remained.
To better match the added power and
weight of the V8, BMW wisely opted for
larger 12.8-inch front brake rotors on all
540i models. Initial 1997 models were
equipped with only ASC+T traction con-
trol, but the more advanced DSC system
became standard on automatic-transntis-
sian models for 1998 and manual-transmis-
sion models for 1999. Multi-spoke 16-inch
alloy wheels carrying 225/ 55HR-16 alI-sea-
son tires were standard and the suspension
was tuned to favor a smooth ride over Qut-
right handling, though it remajned capable
enough to keep things tidy in the corners.
The optional Sport Package tightened
down the chassis and upgraded the tires to
17-inch performance rubber. The package
debuted on the manual-gearbox sedan but
was added to the option list on automatic-
transmission models for 1998 and eventu-
ally grew in content to include Shadowline
trim, sport seats, a three-spoke steering
wheel and a choice of several alloy wheel
designs with staggered sizing (8 x 17-inch
in front, 9 x 17-inch in the back) on sedans.
Like its six-cylinder counterparts, the
540i was facelifted for 2001 and offered in
several new exterior colors for 2002.
However, the most significant change to
the 540i was the introduction of the more
extensive "M" Sport Package for the final
2003 model year. Available on sedans (6
speed manual or 5-speed Steptronk auto-
matic) and sport wagons (Steptronic only),
it expanded upon the previous Sport
Package with several items from the BMW
M parts bin. These included an M-Technic
aero package similar to that on the MS,
even more aggressive M sport suspension
II and staggered 18-inch M Parallel Spoke
alloy wheels (sedans only). Though still not
an MS, the 2003 540i Sport is unquestion-
ably the most compelling flnmerup in the
V8-powered E39 hierarchy.
M5: A new breed of super sedan
Even the 540i's rem.arkable abilities were
upstaged for 2000 with the reintroduction
of the formidable MS. With the legendary
538 inline-6 no longer in production (nor
capable of producing the required horse-
power), BMW M developed a new 4.9-liter
V8 for its third super sedan. Based upon the
M62 unit from the 540i, the S62 incorporat-
ed a redesigned cylinder head, hollow iron
camshafts, eight individual throttle bodies
and continuously-variable Double VANOS
valve timing. The resulting 394 hp and 368
lb-ft of torque were enough to propel the
4,000-lb. M5 (via a Getrag 6-speed manual
gearbox and DSC stability control) from
zero to 60 mph in under five seconds.
The steering, though still of a
ing-ball desjgn, benefited from a quicker
ratio and Servotronic assist with driver-
adjustable weighting, while the springs
and shocks were both stiffened and
matched to 18-inch tires. Brake rotor sizes
increased to 13.6 inches in the front and
12.9 inches in the rear. A subUe yet distinc-
tive M aero package d.istinguished the M5
from other E39 sedans, as did its unique M
wheels and fouf exhaust pipes,
Interior revisions were equally subtle
but telling: sport seats in a choice of two
leathers, aluntinum or wood trim, special
M gauges (including a tachometer with
variable illuminated redline and oil tern
perature gauge) plus an available
Alcantara headliner (standard from 2(01).
Aside from some subtle exterior and
interior revisions for 2001, the E39 M5 con-
tinued essentially unchanged throughout
its production. Even though it was no
longer assembled by hand or powered by
the legendary 538 inlinesix, Americans fell
for the car's stellar combination of supercar
performance and everyday practicality.
Nearly 5,000 examples eventually crossed
the Atlantic, making the E39 M5 nearly
three times more popular Ulan U,e E34 M5.
Simmer AUGUST 2005 93
Performance Mods: Upschporten der E39
O
he E39 5 senes may be a luxury car. but Ws also a fine sports
sedan that responds just as wen to modification as other BMWs.
You wont find the volume at parts far the 5 senes as you will the 3s. but
the larger ports houses will have plenty of opfians available to give
your BMW beNer handling. mare power and even a different look than
stock. What you select win depend on your personal taste and budget.
When It comes to handling. all E39s have a soN but well-controlled
ride In standard form. and a moderately firm and even better-con-
trolled ride with Sport Package. Sport Package Is very good-If you
have fi. think long and hard befare modifying your suspension. When
you need new shocks. consIder original BMW replacements If you
dont upgrade to Bilsteln HD unfis ar Kanis. Of course. onythlng you do
to Improve your E39's handling will result In a firmer ride. Where ride
softness Is a concern and the driver wants a sport suspension anyway. I
suggest Dinan Englneenng (www.dlnanbmw.com). whose refined sus-
pension systems yield reel handling Improvements while also maintain-
Ing a factary-Ilke Ode qualfiy-but nat factary Ode soflne.ss. if you want
foctary Ode softness. leave your suspension alone.
To reduce body roll. you can also upgrade your bars. The
only downside Is a firmer rtcIe that results when the bars transmit
more Impact farce through the chassis. Anfi;oll bar sizes far fhe E39
vary according to suspension configuration: Standard bars are 22.5mm
frant/13mm rear. while cars with Sport Package have 24mm
front/14mm reer bars and those with M Spart II suspension have 25mm
front/15mm rear bars. The E39 M5 uses 27mm front/16.5mm rear anti-roll
bars. Aftermarket anti-roll bars for the E39 are conspicuous by their
absence. though Dinan makes 28mm front/17mm rear bars for V8-
powered E39s and 25mm frontll7mm rear bars for six-cylinder-pow-
ered E39s. Brett Anderson of Koala Motorsport (www.koolomotor-
sport.cam) told us then the front M5 bar will wark on other VB-powered
50. though he wasnt sure about the sixes. "The rear links and brackets
are the some far all E39s." he said. "but front M5 links and brackets are
only shared wNh V8 cars. The tront subframe Is also different. so the M5
front bar on a slx-eylinder E391s suspect. However; a stiffer rear bar with
stock front bar will help dial out same of the Inherent understeer.
Obviously. larger wheels and tires ore popular upgrades on any
BMW. Your best opfians will be found In the Ortglnal BMW Wheel cena-
log or from big tire and wheel houses like www.tlrerack.com and
www.fires.cam. A few things need to be barne in mind when tlVing to
fit larger wheels fo an E39 5 senes. First. the E39 has a unique wheel
center hub bare diameter-anly E39 work on E39s. and E39
wheels wont wark on anything else. second. always fry to avoid wheel
titments that require spacers-spacers give Installers one more thing to
screw up. especially If they',e diNerent fronf and rear. Third. mast E39s
have pretty big wheels. In myoplnk>n. anything over 18 Inches
Is pure bUng-bling. without much performance benefit. More real
Improvement can be had by filling ultra-high performance fires to the
wheels then are already an the car. Fourth, the wider and heover your
fires and wheels, the faster your fires will wear out.
BMW's standard brakes tend to lack sex appeal which makes big
brake kfis popuiar on any madel. Dinan Engineenng sells Bremba rotars
and calipers far the E39. even though Steve Dinan was quoted In Pete
stout's first drtve report on the E60 M5 In 81mmer #48 as soying big
gle-plston fioafing calipers are the real decl while sel red calipers are
overrened. My take on Ills this: Look en the perfarmance and brake
abilfiy of cars then use Bremba mulfiple-plston calipers and Bremba
rotors-we're talking about FerrarIs. lamborghlnls. Porsches... even
stodgy old Mercedes In some cases. These cars have superb brake
performance rtght out of fhe bax. wNh na warping problems. no brake
overheafing and na fade Issues. even en the frack. Now the
brake reliabilfiy record of our favarfie car campany. the one that uses
94 AUGUST 2005 Bimmer
sjngla-plston flooHng calipers. (Eyebrow raised like Mr. Spack.) Enough
said. At the end of the day. single-piston floating calipers are less
expensive to produce. And In 011 fairness to BMW. fis mal1<et. techni-
cians and customers are different from those of the manufacturers
mentioned. For example. 11 you fit a Bremba big brake kit on your car
and fhen dont change the brake fiuld far five years. your VISA card
will be a smoIdIenng glop of molten plasfic by the fime your technician
Is done rebuilding your sexy red calipers. If your onecofiper piston
seizes up tram water In the brake fluid. you can throw fi In the scrap
metal pile and bolt on a new one. Let's also beer In mind that BMW
did use mufipla-plston calipers unfil the early 1980s. and that they sfill
do when they get serious. as on fhe ElXO 850CSi and the M3 CSL
Big brakes have a number of downsides. Padis can be hord to find,
and the brakes require a certain minimum wheel size for clearance-If
you fit snow fires and winter wheels. you may wind up having to use
larger slzes than you planned. reducing snow performance, There's
also casf: You can buy a decent EJO 325es far wihot a Bremba Gran
Turlsmo brake kfi will run.
Everyone wants more power, but contemporary BMW engines like
those fiNed to E39s are fairty weU opfimlzed rtght off the assembly line.
That said. performance software con enhance throttfe response. rid
your car of BMW's ndlcu1aus top speed limfier. bump the redline and
provide a small power increase. Whether fi Is warth fi depends on haw
you value these things. though I can fell you that a 3.45O-lb 521> wNh
184 horsepower Is marginally underpowered-and so Is a 3.4so-tb 521>
6-speed manual wNh 189 harsepawer. Unless you're readly far a super-
chorget you're not going to get a dramatic PJwer Increase with soft-
ware alane. You'lI also need a perfarmance exhaust system and per-
haps a cold aJr Intake system and even then you won't see dramatic
power increases. These doys. the name of the game Is farced induc-
tion, p1o1n and
Active Autowerke (www.activeautowerke.com) has established
fiself as the premter supercharging and turt>ocharglng tuner far BMWs.
but AA does nat offer kits far the 5 senes just yet. They're working on a
supercharged M5. and kits for the 5401 and 5301 will follow. Dinan
Englneenng has an supercharging package for the 54a that
produces 472 hp at 5.800 rpm and 347 Ib-ft tarque at 4.500 rpm. fi Is
sold as part of the 53 package. which also Includes stage 3 suspensian
sysfem. Stage 2 Dlnan/8remba front and rear brake 18-
Inch lightweight farged Stage 1 lightweight clutch assembly
and much mare. I'm nat sure what they would say you coiled and
sold. "Just the big blower. please.' but I do think they are rtght to sell
beNer brakes and suspension with the supercharger.
A lower differential rafio will Improve accelerafion by making better
use of avaliable torque In any E39. Since 1996. only M cars have limfied
differentials. though as BreN Anderson fold us. "The E39 M5 differen-
fiol will bolt Into any 540 6-speed along wNh an M5 drtveshaN and M5
axles. It's around S4.5OO. i believe. but ports can be sourced trom the
dealer for less. A540i automatic would require a custom driveshaft. I'm
sure." Koala Motorsport con also build you a lower-ratio differential
wNh a Qualfe automatic tarque biasing diff that will unleash the
eratlon power you already have. Plan on spending abaut $2.850.
Since KMS only handles VB-powered E39 differentials, those wNh slx-
cylincler E39s should check wNh Jim Blanton at Perfarmance Geanng
(www.perfarmancegeaOng.cam).
Speaking 01 aerodynamic drag. aero parts are avoIiabie far the E39
5 senes that creafe downfarce at the front and rear at speed and also
look pretty cool. BMW has some very fllce aero parts In I1s BMW
Accessartes cenolog far the E39. and 8avanan Autosport (www.bavau-
to. com) carries wonderfUl aerodynamics from AC Schnitzer. my
favarfie German tuner. oIong wNh Hamann and G-Power. -Mike Miller
The E39 sport wagon
This also makes the E39 MS a tremendous
bargain on the used market, with a healthy
supply of great examples keeping prices
down and giving buyers a wide selection
from which to choose.
Which E39? A few considerations
While price will be your most obvious
guide, a few other factors should be taken
into consideration when you start looking
for a used E39 5 Series.
Any 39 makes a competent and com-
fortable daily driver, even an M5, but those
commuting long distances will want to
consider fuel economy before they buy,
especially as the price of premiUln hovers
around $3 a gallon. This is one category in
which the M5 defin.itely loses out to the
lesser models: EPA-rated at 13 mpg city121
hwy, the MS makes owners pay at the
pump (or the privilege of driving a 4,000
lb. car powered by a 400-hp V8. The 540i
sedan doesn't do much better when
equipped with the same 6speed transmis
sian, returning just 15 mpg city/23 hwy
(an automatic brings it up to 18/24). Make
your 540i a wagon and that chassis' extra
300 lbs. will bring mileage down almost to
MS levels: 15/21 for the earlier cars and
17/21 for later models.
If you want good fuel economy, you'll
have to go for a six. Fortunately, the six that
delivers the best mileage is also the one
with the best performance: the 3.0-liter
engine that powers the 530i. With a manual
transmission, the 530i sedan returns 21 mpg
city/3D mpg highway; an automatic drops
lllat to 19/27. The 525i sedan gets a slightly
lower 20/29 mpg with a manual, while the
5251 wagon gets 19/26. Thars almost exact-
ly the same as the earlier 528i, which in
1999 returned 20 mpg city/29 mpg in sedan
form and 18/26 as a wagon. Add an auto-
matic to the sedan and mileage dropped to
18/26, though it remained lI,e same in the
wagon. None of those figures are horrible-
in fact, they're real.Iy quite impressive given
that the lightest of the E39 models weighs
around 3,500 lbs.
Because it offers the best fuel economy
with the best six-cylinder performance,
we'd reconunend looking for a 530i if your
budget can accommodate it. [f you want a
wagon instead of a sedan, however, the
pick of the sixes is the 528i if you want a
manual; its extra 8 hp Illay be negligible,
but its additional 29 Ib-ft of torque over lI,e
525i are definitely not. You'll be especially
grateful for them when that cargo compart-
ment is loaded with stuff.
U you require an automatic, your best
wagon bet is a 525i despite its lower output.
That 5-speed transmission represents a
huge improvement over the 4-speed, and
having the Steptronic manual shifting
option is also worthwhile.
If sportiness is your primary concern,
you'll have to decide whether you want
the handling agility of the sixes or the
straight-line speed of the V8s-even an M5
won't really out-handle a 530i with Sport
Package until it's been reworked by Dinan,
hut its 400 hp are enough to compensate
for a lot of understeer.
Finding the E39 of your dreams
Regardless of which model you want,
you'll find plenty of E39s on tl,e used-car
market. Those who live in areas with few
BMWs might have to travel a bit, but no
one should have to travel more than a few
hundred miles to find a good E39 in exact-
ly the color and configuration desired. It
should also be possible to find that car in
perfect condition with respect to both
mechanics and appearance. en that respect,
the 5 Series cars benefit from having been
more expensive than their 3 Series counter-
parts and also from attracting a more
mature buyer when new.
As a used-car buyer, you're buying a
car's former owner as m,uch as the car
itself, so make sure to buy your 5er from
someone who seems to have taken pride in
their BMW. That means someone who not
only had all maintenance performed on
time but who kept the car looking clean
and new, and whose knowledge of the car
is extensive. If a model is misidentified or
its features mis-stated, give that car extra
scrutiny before you part with your cash. If
its seller doesn't even know that the car has
an inline six rather than a V6 engine, they
probably don't know enough about the car
to have taken good care of it.
Since the E39 has only recently gone out
of production, we'd suggest looking for a
Certified Pre-Owned example if your
budget can accommodate it. You'll pay a
little more for a CPO car-perhaps another
$1,500 or $2,000-but you'll get an addi-
tiona! 2 years and 50,000 miles of CPO war-
ranty coverage on top of BMW's originalS
year / 50,000 mile warranty. The premium
price of a CPO car will pay for itself should
your E39 actually need work during its
first 100,000 miles, and even if it doesn't it
will be well worth it for the peace of mind
that warranty provides, especially if you
buy a car with a VB engine or an automatic
transmission. (No warranty will cover pre-
ventive cooling system maintenance, how-
ever; you'll have to pay for that yourself if
you decide to take Mike Miller's advice.)
You can search for CPO cars near you at
www.bmwllsa.com. We asked for a 5 Series
sedan within 50 miles of Bimmer HQ and
turned up a staggering 100 cars to choose
from. The neat thing about BMW's search
engine is that it presents its results in order
of p r o x i m i ~ which means that all the cars
at a particular dealership will be listed
Blmmer AUGUST 2005 95
Kelly Blue Book Values, E39
EACH VALUE LISTED Is to< a COf being said by
a p<lvate party In "Goad" condition Q.e. with
no mechan/col defects, a clean body and
Interior. etc.). Most used cars fall IntQ the
"Goad" catega<y; those In "ExceDenr cand"
tlon hove a higher KBB value by opproxi
rnately 10%. AI vakJes isled Ofe to< a co< with
5O.lXXJ mies and an automatic trOflSlT'lssioo.
located In EJimme(s home zip code of 949/f1
an April 5. 2005. To find the Blue Book value
of on IndMduol cor. see wwv/.kbb.com.
1997
E39 5251 Sedan 4D $15.125
E39 540l sedan 4D $18.975
1998
E39 5281 sedan 4D $16.750
E39 540i sedan 4D $20.800
1999
E39 5281 sedan 4D $18.525
E39 528IT Wagan 4D $17.555
E39 540l Sedan 4D $23.125
E39 54011 Wagan 4D $21.980
2000
E39 528; sedan 4D $20.575
E39 528IT Wagon 4D $19.585
E39 540i sedan 4D $25.850
E39 54011 Wagon 4D $24.535
E39 M5 sedan 4D $40.315
2001
E39 5251 sedan 4D $23.525
E39 525IT Wagon 4D $22.485
E39 530i $edon 4D $25.925
540l sedan 4D $29.250
54011 Wagan 4D $27.785
M5$edan4D $45.430
2002
E395251 $edon 4D $24,775
E39 525IT Wogon 4D $23.535
E39530i Sedan 4D $27.075
E39 540l $edon 4D $30.450
E39 540l Wagan 4D $29.035
E39 M5 Sedan 4D $46.325
2003
E39 5251 $edon 4D $24.575
E39 525IT Wogon 40 $23.485
E39 530i $edon 40 $26.900
E39 540l $edon 40 $30.250
E3954011 Wagon 40 $28.835
E39 M5 $edon 4D $45.805
together, making it easy to see which deal-
ers tend to have the best prices or the most
interesting vehicles.
Prices for CPO 5ers ranged from a IUgh
of $47,995 to a low of $21,900. The higher
figure purchased a 2003 540i in Alpine
White with black leather, manual transmis-
sion, Cold Weather Package, premium
sound and 31,000 miles on the odometer.
The low price netted a silver 1999 528i
automatic with a black leather interior,
Premium Package and 64,000 miles.
If we'd been shopping for a used Ser
sedan at the time, we'd have definitely
96 AUGUST 2005 Blmmer
made the trip over to Berkeley to check out
a 2002 530i at Weatherford BMW. This Slate
Green car with black leather had a manual
transmission, Premium Package, Xenon
headlights, Park Distance Control and just
40,000 miles on the clock. At $29,777, this
car was priced almost $16,000 below its
MSRP of just a few years ago, yet it comes
with the added security of the extended
CPO warranty. Asswning it was in perfect
mechanical and aesthetic condition as a
CPO car should be, this was a killer deal.
As a manual transmission model, it was
also a rarity among CPO cars. Of the 100
cars turned up by our search, only 14 had
manuals. BMW doesn't release stats on
how many cars are sold with each type of
transmission, so we don't know whether
that figure represents actual availability or
merely dealer preference.
In either case, we had much better luck
finding llsed Sers with manual transmis-
sions on Craigslist.org. At any given time,
there are a few hundred BMWs for sale on
OUI local Craigslist, and it's a great place to
find cars that are a little too old to make it
into the CPO program. A new feature
allows the list to be sorted by whether a car
is for sale by a dealer or by a private party,
which makes it easy to eliminate those
BMWs which have found their way onto
used car lots via the auction block.
With Sers as well as other BMWs, we
strongly caution against buying cars from
used car dealers, largely because most have
no known vehicle history beyond what can
be divined from a Carfax report. Aused car
without a known maintenance history is a
huge gamble, and we encourage our read-
ers to buy only those cars for which the
owner has all records and receipts.
With that caveat, we scoured Craigslist
for used Sers and hlrned up quite a few bar-
gains and a few real gems. In the fon,ner cat-
egory, we quite liked a 1999 528i sedan with
an automatic transmission, Sport and
Premium Packages, Titanium Silver paint
with grey leather interior and 65,000 miles
for $18,500. It wasn't as much of a bargain,
but a oneowner 2001 52Si manual, black-
on-black with Sport and Pl'emiwn Packages,
Xenon lights and 29,000 miles could have
been a sound purchase at $27,900.
Our real favorite among the cars available
on Craigslist, however, was a 2002 530i man-
ual in Steel Blue with a black leather interior,
Sport/Premium/Cold Weather Packages,
Xenon lights and a nav system/CD player.
This one-owner car was said to be in excep-
tional condition, and it appeared to have
been very sensibly modified with 18-inch
Hamarm wheels, Bridgestone Potenza S-03
tires, a Rogue Engineering short-slUft kit, M5
anti-roll bars and a Ben-Fer carbon fiber
intake. The owner had all the original parts,
as well-a very good sign-and wanted just
$36,999 for this beauty. Those in the market
for a tastefully modified 50r could do very
well to check out a car like this.
They'd also do well to check the ads on
Roadfly.org, which tend to be posted by
enthusiasts and often feature interestingly
modified machines. The only drawback is
Roadfly's national coverage, which means
that cars can be located anywhere within
the U.S., and not necessarily near you. Still,
it's a goad place to start looking. and you
might get lucky to find a good car nearby.
Time 10 buy: Looking for
a solid Sporl Wagon
When Bimmer advertising director Stan
Michelman sold IUs Porsche 928, he wanted
to replace it with a vehicle that had more
carrying capacity and room for his dog. He
first considered a Subam Legacy wagon, but
a weekend behind the wheel left him unim-
pressed with that car's interior quality even
though he liked its quickness and sporty
handling. Why not a BMW? we asked.
Stan wanted to find a nice S Series
wagon in the sub-$25,000 range, which put
CPO cars out of reach but left him with
plenty of options where private-party cars
were concerned, Afew weeks after he start-
ed looking, a gorgeous Titanium Silver S28i
wagon turned up on a nearby street with a
"For Sale" sign in its window. Its original
owner was asking $21,500 for this aestheti-
cally perfect 1999 example with a black
leather interior, Sport and Premium
Packages and 66,000 nilles on the clock.
Stan took it for a test drive and fOlmd its
handling lawless and its interior spotless,
while a pre-purchase inspection showed
the car to be in excellent mechanical condi-
tion. Since it hadn't yet had its GO,OOO-mile
service, Stan was able to purchase it for
$20,200. He immediately spent $800 having
the service performed and all fluids
changed, but since then he's had to do
nothing to keep the car running perfectly.
He wouldn't mind having more power,
finding the 2.8liter six a little anemic after a
Porsche V8, especially with an automatic
transmission. The car's OBD-II electronics
make extra horsepower hard to find, howev-
er, so Stan has decided to leave the car alone
and enjoy its other qualities in the absence of
big power. He's happy with the mileage-I8
mpg city, 23 IlWy-that his 528; wagon is
retumi..ng, and he loves its nimble handling.
Best of all, IUs dog is thrilled to have its own
space in the cargo hold-making Stan's pur-
chase a success in the most important cate-
gory of all, at least to dog owners! "