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© 2026 - Octane Automotive BV
© 2026 - Octane Automotive BV
The BMW M5 E39 is the third generation BMW M5, built in 1998-2003 with a production of 20,482 cars worldwide. It is the first M5 with a factory-installed V8 engine (the S62 5.0-litre naturally aspirated V8 with factory-installed 400 hp and factory-installed 500 Nm), after the E28 M5 (1984-1988, M88/3 inline-six) and the E34 M5 (1988-1995, S38 inline-six). The E39 M5 is available factory-installed only as Sedan and factory-installed only with manual six-speed gearbox (no automatic version factory-installed available). For modern BMW M purists the E39 M5 represents the most appreciated regular BMW M5: factory-installed naturally aspirated V8, factory-installed manual gearbox, factory-installed rear-wheel drive with factory-installed limited-slip differential, and factory-installed classic E39 Sedan form without factory-installed large air intakes or factory-installed extravagant design. A BMW M5 E39 is not sold to just any buyer; it is passed on to someone who knows the factory-installed BMW M S62 culture.
BMW M unveiled the E39 M5 in 1998 as the third generation of the M5 model line. Compared to the earlier E28 M5 (1984-1988, M88/3 inline-six derived from the M1) and E34 M5 (1988-1995, S38 inline-six), the E39 M5 marked a substantial turning point: for the first time in M5 history BMW M built a factory-installed V8 engine. The factory-installed S62 V8 (5.0 litres, factory-installed 400 hp, factory-installed naturally aspirated, factory-installed Double-VANOS, factory-installed individual throttle bodies per cylinder) was one of the most advanced production engines in the world at launch. For BMW M purists the E39 M5 represents the transition moment between classic inline-six M culture and modern V8/V10/biturbo M culture.
The central technical point of the E39 M5 is the factory-installed S62 V8. Derived from the M62 V8 in the regular BMW 540i, but factory-installed thoroughly revised for BMW M application: factory-installed increased compression, factory-installed newer head gaskets, factory-installed VANOS (variable valve timing on both intake and exhaust sides, factory-installed first V8 in the world with Double-VANOS), factory-installed individual throttle bodies per cylinder (so-called factory-installed individual throttle bodies, shared with the S38 inline-six in the E34 M5), and factory-installed shorter intake manifold. The result: factory-installed 400 hp and factory-installed 500 Nm of torque. The factory-installed acceleration from 0-100 km/h is 4.8 seconds; the factory-installed top speed is limited to 250 km/h (unlocked via factory-installed M modification). For collectors factory-installed S62 condition is substantially value-driving.
The E39 M5 is available factory-installed only with manual six-speed gearbox (Getrag 420G, shared with other BMW M models of the period). BMW M deliberately chose factory-installed manual-only to position the E39 M5 as the factory-installed purest Sedan specification of its generation. The factory-installed chassis is derived from the regular E39 Sedan but with factory-installed M-specific adaptations: factory-installed lowered ride height, factory-installed M Sport dampers, factory-installed sport chassis setting, factory-installed M steering, and factory-installed M limited-slip differential at the rear. For collectors factory original chassis condition is essential.
The E39 M5 production runs from 1998-2003 and is divided into two production phases. Factory-installed pre-facelift (1998-2000) has factory-installed oval low beams in the headlights (factory-installed classic E39 specification). Factory-installed facelift (from late 2000 to 2003) has factory-installed angel-eye Halo headlights with factory-installed surround lighting (the known factory-installed angel-eye look that became factory-installed characteristic of modern BMW M models). For collectors factory-installed facelift is generally higher priced, although factory-installed pre-facelift has a specific following for its factory-installed classic specification.
The E39 M5 has seen a substantially strong appreciation curve since 2015. Well-documented examples in factory specification sit consistently in a strong segment; factory-installed BMW Individual specifications, factory-installed Le Mans Blue, and factory-installed low-mileage examples in factory facelift specification are substantially higher priced. The factory-installed collector class position of the E39 M5 is strengthened by: factory-installed naturally aspirated V8 engine (factory-installed unique within the M5 line), factory-installed exclusively manual gearbox, factory-installed classic Sedan form without factory-installed extravagant design, and factory-installed position as first V8 M5. For sellers this means a well-documented E39 M5 with proven service history at BMW M Classic or recognised M specialist, original factory specification, and BMW Group Classic certification attracts strong international interest.
The E39 M5 was built in 1998-2003. Early production (1998-2000) and late production (2001-2003) differ in factory-installed details: factory-installed pre-facelift has factory-installed oval low beams in the headlights, factory-installed facelift (from late 2000) has factory-installed angel-eye Halo headlights with factory-installed surround lighting. For collectors factory-installed facelift (2001-2003) is generally higher priced. Specific production batch via factory chassis number; request BMW Group Classic certification.
The E39 M5 is available in a broad range of factory-installed BMW Individual colours. Iconic: factory-installed Le Mans Blue Metallic, factory-installed Carbon Black Metallic, factory-installed Imola Red, factory-installed Silverstone Metallic, and factory-installed Titanium Silver Metallic. Factory-installed BMW Individual specifications (factory-installed Velvet Blue, factory-installed Estoril Blue, factory-installed Olivin Green) are substantially scarcer and higher priced. For collectors factory-installed Le Mans Blue is generally the most sought-after signature E39 colour.
The E39 M5 has factory-installed naturally aspirated 5.0-litre S62 V8 with factory-installed Double-VANOS variable valve timing, factory-installed individual throttle bodies per cylinder, and factory-installed 400 hp. For collectors, factory-installed S62 condition, factory-installed VANOS service, factory-installed Vanos actuator status, factory-installed thrust bearing condition, factory-installed timing chain rails, and factory-installed S62-specific points of attention are essential. Document factory diagnostic report from BMW M Classic or recognised M specialist.
The E39 M5 is available factory-installed only with manual six-speed gearbox (Getrag 420G); there is no factory-installed automatic version. For collectors this is substantially value-adding. Document factory-installed transmission condition, factory-installed clutch status, factory-installed limited-slip differential service, and factory-installed rear axle condition.
For E39 M5 collectors, factory original interior in factory specification is essential. Factory-installed Nappa leather upholstery (factory-installed Caramel, factory-installed Black, factory-installed Silverstone, or factory-installed BMW Individual colours), factory-installed M multifunctional steering wheel, factory-installed M bucket seats, factory-installed M shifter, and factory-installed wood trim (factory-installed Myrtle, factory-installed Vavona, or factory-installed BMW Individual wood trim). Document factory-installed condition of the interior with chronological photos.
E39 M5 service is specialist work: factory-installed S62 V8 service (factory-installed oil level, factory-installed VANOS, factory-installed Vanos actuator, factory-installed thrust bearing condition, factory-installed timing chain rails), factory-installed cooling system (factory-installed water pump every 100,000 km, factory-installed expansion tank replacement), factory-installed manual transmission condition, and factory-installed limited-slip differential service. Service at BMW M Classic or recognised M specialist is essential.
For E39 M5 collectors low-to-moderate mileage (under 150,000 for 1998-2000 model year, under 120,000 for 2001-2003 model year) with full service history is more attractive. For factory-installed BMW Individual specifications and factory-installed facelift (2001-2003) low mileage is substantially value-driving. Number of previous owners, factory-installed market version, and geographic distribution are value-driving.
Note: These factors may influence buyer interest. Value depends on many factors.
E39 M5 Sedan (1998-2003), factory-installed pre-facelift (1998-2000) or factory-installed facelift (2001-2003), specific production batch, factory-installed market version (Europe, US, United Kingdom, Asian markets). Model year, chassis number, and engine number. Request BMW Group Classic certification in Munich.
For E39 M5 BMW Group Classic certification is substantially value-adding. Apply via BMW Group Classic in Munich via form. Confirms factory chassis number, factory engine number, factory-installed production date, original factory specification, factory-installed package elements, factory-installed paint colour, and (where applicable) factory-installed BMW Individual specification.
All invoices from BMW M Classic or recognised M specialist. For S62 V8: factory-installed oil level condition, factory-installed VANOS service, factory-installed Vanos actuator status, factory-installed thrust bearing condition, factory-installed timing chain rails, factory-installed water pump history (every 100,000 km), factory-installed expansion tank replacement, and factory-installed individual throttle body service.
The S62 V8 has known factory-installed points of attention: factory-installed thrust bearing condition (specifically at high mileage), factory-installed timing chain rails, factory-installed VANOS actuator condition, factory-installed individual throttle body service, and factory-installed oil consumption status. Document factory diagnostic report from BMW M Classic or recognised S62 specialist.
The E39 M5 is available factory-installed only with manual six-speed gearbox (Getrag 420G). Document factory-installed transmission condition, factory-installed clutch status, factory-installed limited-slip differential service, and factory-installed rear axle condition. For collectors proof of factory-installed original transmission and clutch is essential.
Paint colour with BMW factory code (Le Mans Blue, Carbon Black, Imola Red, Silverstone, Titanium Silver, or factory-installed BMW Individual specification). Factory-installed Nappa leather interior (Caramel, Black, Silverstone, or factory-installed BMW Individual colour), factory-installed M multifunctional steering wheel, factory-installed M bucket seats, factory-installed wood trim specification. For collectors factory-installed BMW Individual specifications are substantially value-adding.
Number of previous owners, mileage, factory-installed market version, factory-installed model year (pre-facelift or facelift), any factory-installed BMW Individual specification, and geographic distribution. For collectors: low mileage (under 150,000 for 1998-2000, under 120,000 for 2001-2003) and proven service is substantially value-driving.
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