BMW M5 E39

1998-2003Last updated: June 2026 · How this report is builtJune 2026

1998-2003 · 4.9L S62 V8 naturally aspirated (400 hp) 6-speed manual

BMW M5 E39
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Widely regarded as one of the greatest sports sedans ever built. The naturally aspirated 4.9-litre S62 V8 produces 400 hp through a 6-speed manual gearbox only, and the chassis balance remains a benchmark. All examples are now over 20 years old, so condition and maintenance history matter far more than mileage. The S62 is robust when properly maintained, but VANOS wear, cooling system aging, and the high cost of M-specific parts mean ownership requires commitment and a realistic budget.· more· less

Robust S62 V8 engine design Manual-only, no gearbox concerns
VANOS rebuild virtually inevitable All parts are M-specific and costly
Buy if: You want a raw, naturally aspirated V8 sports sedan and can budget for age-related maintenance on a 20+ year old performance car.
Avoid if: You need predictable low running costs or cannot absorb a surprise €3,000-5,000 repair bill.
Maintenance costs
€1,500 - €2,800/year
15,000 km/year
Fixed costs
€900-1,600
Risk buffer
€600-1,200
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Common Problems
Reliable M engine, but age demands proactive maintenance
The S62 V8 is widely considered one of BMW's most robust M engines, with many examples exceeding 300,000 km. Unlike the S85 V10 that followed it, the S62 has no timing chain design flaw and rod bearing failures are far less frequent. However, every E39 M5 is now over 20 years old, and age-related degradation of cooling systems, rubber components, VANOS internals, and electronics is inevitable. A well-maintained car with documented history and refreshed cooling system is a very different proposition from a neglected example. Budget realistically for ongoing maintenance and keep a reserve fund for larger items.
Buying a used BMW M5? Check its history.
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Pre-Purchase Inspection Checklist
General checks
Specific for this vehicle
Recalls and Technical Service Bulletins
Takata airbag inflator (driver and/or passenger side, 2000-2003 production) Critical - verify completed
Fuel tank ventilation valve (certain 2000-2001 production cars) Verify completed
The Takata airbag recall is critical and affects all E39 M5 production years. BMW has issued a 'Do Not Drive' advisory for unrepaired vehicles. Contact BMW with the VIN to verify all recalls have been completed. Replacement parts are available free of charge.
Warranty Status
Factory warranty (2 years) Expired on all E39 M5s (last produced 2003)
Rust perforation warranty (12 years) Expired on all examples
Extended warranty availability Not available through BMW for cars of this age
All E39 M5s are well outside any factory or extended warranty coverage. No manufacturer warranty programs are available for vehicles of this age. Third-party warranty providers may offer limited coverage, but exclusions on pre-existing conditions and age-related wear are typical. Budget accordingly.

↔ Also consider

BMW M5 V10 E60
BMW M5 V10 E60 2005-2010
S85 V10 successor. More power but far more fragile: rod bearings fail more frequently, throttle actuators are a known weak point, and SMG gearbox adds complexity. Higher running costs overall.
Audi RS6 4.2T biturbo C5
Audi RS6 4.2T biturbo C5 2002-2004
Direct rival. Twin-turbo V8 is powerful but turbocharger failures and complex electronics make it more expensive long-term. Heavier and less engaging to drive.
Porsche 911 Carrera 996
Porsche 911 Carrera 996 1997-2004
Different character but similar era and budget. IMS bearing risk is the major concern. Lower running costs on routine items but catastrophic engine failure is more common.
BMW M5 F10
BMW M5 F10 2011-2016
Twin-turbo V8 successor. More refined and faster, but turbo system and DCT gearbox add failure points the E39 avoids entirely. Rod bearing issues persist.
Mercedes-Benz E200 W210
Mercedes-Benz E200 W210 1995-2003
Same era but very different car. Simpler engine means lower maintenance costs, but W210 has its own rust and electrical aging problems. Not comparable in performance.

This report is for informational purposes only and does not constitute professional advice. Estimates may be inaccurate. Always have a qualified specialist inspect the vehicle before purchase. We accept no liability for decisions made based on this information.