With meaner muscular looks and a wonderful V8 engine, the E39 is many PHers' favourite M5. And it's not hard to see the appeal. In addition to a significant increase in power, the E39 M5 was built on the same production line as the regular 5 Series, meaning many more were produced. A three-year gap in M5 production also added to the new car's allure, as did the first appearance of quad tailpipes.
Another M5, another legendary engine
Introduced in 1998 at the Geneva motor show a total of 20,482 E39 M5s were made between 1999 and 2003, with eager UK buyers snapping up 1,600 examples. The M5's S62 4,941cc V8 produced 400hp at 6,600rpm and a healthy 369lb ft of torque at 3,800rpm. Performance was class-leading, hitting 62mph in just 5.3 seconds and capable of 186mph with the factory 155mph speed limiter removed. The engine redlined at 7,000rpm.
All E39 M5s came equipped with a dependable Getrag six-speed manual transmission taken from the 540i model, but with a reinforced clutch and a revised limited-slip differential. Several changes were also made to the suspension such as a reduced spring height, revised damper valves, thicker front and rear anti-roll bars, polyurethane auxiliary springs, and steel ball joints.
A Servotronic speed-sensitive power assist system provides two levels of steering resistance controlled via a console-mounted Sport button. The Sport button also adjusted the electronic throttle butterflies for faster throttle response.
Interior starting to look more modern now too
Far quicker than previous versions the E39 boasts a more compact cabin too, as well as more supportive seats, smaller dials and a wonderfully smooth and free-revving V8 soundtrack. But the best thing is the E39's chassis that combines great comfort with fantastically throttle adjustable handling - where conditions allow!
And contemporary buyers are well aware of the E39's charms - prices have been rising steadily for two years now. Yet the E39 is still a very usable M5, so you could buy one for say two or three years, enjoy it, and still sell it on for a profit. "This makes the E39 the best daily-drive M5 option for making money at the moment," James explains. "They're still a great performing car, and are just starting to ride the financial appreciation wave."
Just make sure your E39 doesn't have corroded rear jacking points and sills, any signs of con-rod bearing shell wear/failure, Vanos issues, oil leaks or worn suspension components.
Buy if: you want an M5 you can buy, drive and then sell (hopefully) at a profit
Don't buy if: you're looking for a serious long-term investment
We found: 1999 BMW M5, Avus Blue, full service history, 77K miles, £11,995
Price Guide
Poor: Under £9,500
Good: £9,500 to £16,500
A1: £16,500+
Special Editions: Concours condition low-mileage examples are now fetching well over £25,000