BMW M5 E34
The BMW M5 E34 represents the refinement of the super sedan concept pioneered by the E28 M5. Introduced in 1988, the E34 M5 combined the elegant styling and luxury of BMW's new 5-Series with a modified version of the M1's legendary inline-six engine. The S38B36 engine initially displaced 3.5 liters and produced 315 horsepower (later increased to 3.8 liters and 340 hp in 1992), delivering power with remarkable smoothness and a distinctive high-RPM wail.
The E34 M5 was more refined and civilized than its E28 predecessor while maintaining pure driving excitement. The chassis featured upgraded suspension with stiffer springs and dampers, larger anti-roll bars, and precise steering. The braking system used ventilated discs at all four corners with ABS as standard. Distinctive M Sport styling included subtle body modifications, M-specific wheels, and quad exhaust tips that hinted at the performance beneath the understated exterior.
Inside, the E34 M5 offered genuine luxury with sport seats upholstered in leather, wood trim, full instrumentation, and all the comfort features expected in a premium sedan. This combination of supercar performance and executive comfort created the blueprint for modern performance sedans. The M5 could transport five adults in comfort, then attack a mountain road with aplomb, making it the ultimate daily driver for enthusiasts.
Production totaled 12,254 units globally over six years, making the E34 M5 relatively rare but not unobtainable. The 1991-1992 models are particularly sought after for their improved engines and refinements. Today, values are rising as collectors recognize the E34 M5 as one of the greatest M cars ever made. Clean, well-maintained examples with full service history command strong prices, particularly manual transmission versions which represent the purest driving experience.
Values range $35,000-$75,000 for excellent examples. Manual transmission preferred. Check for rust in rear shock towers. Verify complete service history. VANOS system on later cars requires maintenance. Rod bearing issues on high-mileage examples.
Hand-built S38 engines. Revised to 3.8L and 340hp in 1992. North American versions had catalytic converters reducing power to 311hp initially.