BMW M5 E39
The BMW E39 M5 is, by broad consensus, the finest sports sedan ever produced. It represents the absolute pinnacle of BMW M engineering philosophy: take an already excellent luxury sedan and transform it into a driving machine that can embarrass dedicated sports cars while carrying four adults in complete comfort.
The S62 engine is the star. A 4.9-liter naturally aspirated V8 with double overhead cams, 32 valves, and eight individual throttle bodies (one per cylinder), it produces 394 hp and 369 lb-ft of torque with a linear, naturally aspirated power delivery that revs eagerly to its 7,000 RPM redline. The individual throttle bodies give the S62 a throttle response that is instantaneous — there is zero delay between pressing the accelerator and feeling the car surge forward.
The only transmission available was a 6-speed manual gearbox — no automatic was offered. This was a deliberate choice by BMW M, reflecting their belief that the manual gearbox was essential to the M5 driving experience. It's a decision that has aged extraordinarily well, as every subsequent M5 has been automatic-only.
The E39 M5's genius was in its restraint. From the outside, only subtle differences distinguished it from a standard 540i: slightly wider track, M mirrors, quad exhaust tips, and unique 18-inch wheels. There were no wings, scoops, or aggressive body kits. The M5 was the ultimate sleeper — a car that could demolish a Porsche 911 from stoplight to stoplight while looking like a senior executive's commuter.
Road behavior was impeccable. The M5 could cruise at 155 mph (electronically limited) in serene comfort, then attack a mountain road with the precision of a much smaller car. The suspension was firm but never harsh, the steering was communicative without being twitchy, and the brakes (enormous ventilated discs all around) were confidence-inspiring.
The E39 M5 is now widely recognized as a landmark car. Values have stabilized after years of depreciation and are now trending upward as enthusiasts realize that the combination of naturally aspirated V8, manual gearbox, and analog driving experience will never be replicated.
The E39 M5 is the best performance sedan value in the world. Common issues: VANOS solenoid wear ($500-$1,500 to address), rod bearing wear on high-mileage examples (the S62's Achilles heel — $5,000+ to replace), cooling system plastic components (thermostat housing, expansion tank, water pump impeller), and rear subframe mounting point cracks. The Getrag 6-speed is very strong. Check for consistent idle, smooth VANOS operation (no rattling on cold start), and clean oil consumption. Service history is critical — neglected M5s can have $15,000+ in deferred maintenance.
Total E39 M5 production: 20,482 units. US delivery: approximately 10,000. Available only as a sedan (no wagon, no coupe). All cars were 6-speed manual — no automatic option existed. Production ran from 1998 (Europe) to 2003. The engine was hand-assembled at BMW M in Munich, with each engine carrying a plaque signed by the technician who built it.