Sold from 1989 to 1995 and assembled at BMW's Motorsport Division, the second-generation E34 M5 took around two weeks to be converted from a standard E34 six-cylinder model. This version upped the super saloon ante substantially and was BMW's last handbuilt M car.
Grip and composure up a lot from E28
The E34's motorsport-tuned 3,535cc six-cylinder S38B36 engine produced 315hp at 6,900rpm and 266lb ft of torque at 4,750 rpm - enough to propel the saloon to 60mph in just 6.3 seconds and on to a top speed of 157mph. As with the previous E28 M5, a five-speed manual transmission was employed.
But this performance was rapidly deemed insufficient by BMW, and by late 1991 the car's engine displacement was increased to 3,795cc, with power and torque leaping to 340hp and 296lb ft respectively. This revised 3.8-litre M5 also employed a new six-speed manual transmission and was substantially faster - passing 60mph in just 5.9 seconds in the way to a 166mph top speed. The suspension was also significantly enhanced.
1992 saw an M5 first - the release of a five-door Touring version, introduced in left-hand drive form. Just 891 of these E34 models were manufactured. Like the saloon, the E34 looks and feels bigger than the E28, but sits also lower and feels more planted. And it's every bit as low profile as the E28 too.
Cabin design is typical 1990s, with simple instruments and chunky switchgear, whilst the manual transmission isn't geared for low-down acceleration and doesn't like to be rushed. The ride isn't as pliable as the E28s, however there's reduced body roll as a result. With more outright grip than its predecessor the rear does let go more suddenly, but is still easy enough to control.
715 right-hand drive examples were sold in the UK, including 50 1995 UK Limited Edition models, whilst Europe received four special editions of the E34 M5 - including the 20 Jahre edition. As will almost all classics the E34 suffers from rust: "Rust and corrosion problems can affect the E34, with rear sills and jacking points, front jacking points, the bottoms of front wings and the petrol flap frequent offenders," James Redish confirms. Buyers should also look out for timing chain issues and failing steering linkages, as well as perished bushes, warped discs and misbehaving electrics.
Buy if: you're looking for an affordable classic M5
Don't buy if: you're seeking the ultimate in performance or handling
We found: 1992 BMW M5 3.6 saloon, black metallic, service history, 43K miles, £32,750
Price Guide
Poor: Under £17,500
Good: £17,500 to £35,000
A1: £35,000+
Special Editions: Low-mileage E34 M5 Limited Editions can sell for well over £35,000