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Ultimate Guide:
E39 Words: Sebastian de Latour
Best car in the world? Probably, and
now possibly the best used car in the
world – here’s everything you need
to know about the last car
you’ll ever need to own
Photography: David Shepherd/CTP
1 995 may not have been an especially
the E39 continued to impress and gave two
generations of its main rival, the E-Class, a good
drubbing, only being defeated by the latest
incarnation and that was at nearly nine years old.
Such was its success and so popular was it with the
public that even now, three years after production
ended and the E60 has settled in, there are many
who cannot get on with the new design and favour
an E39 over the later car.
The E39 wasn’t just a pretty face though, and
BMW’s engineers had put in a great deal of effort
to make significant improvements over the E34.
The E39’s bare shell was 50 per cent stiffer than
that of the E34 and the use of aluminium
suspension along with lighter drivetrain components
meant a saving of 36 per cent over the equivalent
steel parts, which meant a lower kerb weight than
its predecessor, despite the size increase. As well as
being bigger on the outside, the E39 was bigger on
the inside, with a longer wheelbase and more room
for front and rear occupants.
Over its eight years in production, the E39 has
undergone a number of revisions, with a multitude
of engines to choose from which were replaced and
expanded following its facelift. The E39 5 Series was
initially launched with two petrol engines and one
diesel. The entry-level model was the 523i, powered
by the 2.5-litre, 170bhp M52 engine, its misleading
badging a BMW characteristic, while the next model
up was the 193bhp 528i. In 1995, performance
diesels didn’t yet exist, and derv devotees had to
make do with the 525tds, which took its engine
from the E34 equivalent. It was neither especially
torquey, with 191lb ft, or all that fast, with 143bhp,
and it wasn’t even that economical, with an average
fuel consumption figure of 34mpg, but things would
be very different in the not-to-distant future. These
three were soon joined by the entry-level 520i,
which mustered 150bhp from its two-litre straight-six
and then the 5 Series muscle arrived in the shape of
the V8-powered 535i and 540i. The 535i badge
may have been the same as that of the E34 model,
but the engine was all-new and delivered 235bhp
and 243lb ft of torque, though the star of the show
was undoubtedly the 540i. Its 4.4-litre V8 had the
same capacity as its E34 counterpart, and while the
E39 also produced 286bhp, this peak was achieved
100rpm lower down the rev range. The 310lb ft that
the engine generated was a useful 15lb ft up on the
E34 and was produced at a much more accessible
3900rpm, 600rpm earlier. The V8s both had six-
speed manual gearboxes as standard, rear air
suspension and chromed vertical bars in the kidney
grilles – these two were also the heaviest and
thirstiest models by some margin, and while the
six-cylinder cars had rack and pinion steering, the
V8s retained the E34’s recirculating ball arrangement
due to space constraints. In 1997, the Touring
arrived, and looked identical to the saloon, bar the
addition of the attractively-designed estate section.
The Touring gained a number of practical additions
over the Saloon, including a separately opening rear
window, as featured on the E34 Touring, which was
now easier to use, an optional sliding loading floor
and a powered tailgate, which could be opened or
closed from the key fob or a button on the tailgate
itself. Despite these features, the Touring was very
much a case of style over substance and while the
load bay was flat, it wasn’t especially large when
compared to rivals, making the Touring very much
what its name suggested – a lifestyle estate for
weekends away – rather than a full-on Ikea-mobile.
While the 523i and 528i had been the saloon’s
biggest sellers, Touring buyers turned their attention
to the diesel lump which best seemed to fit in with
the car’s image.
1998 saw the first major changes in the engine
line-up, with revisions to existing engines and the
addition of a number of new powerplants. The
biggest news was the arrival of the 530d, which saw
the first public appearance of the near-legendary
M57 engine. Most car manufacturers had been
working on direct-injection diesels, which boasted a
20 per cent increase in efficiency when compared
to the older swirl chamber design, but BMW’s efforts
would overshadow anything that the others had put
together. With 193bhp, the 530d matched the 528i
for power but its torque peak of 302lb ft put it in
the same ballpark as the 540i. On paper, its
performance figures were all but a match for the
petrol equivalent, but in the real world the vast
reserves of torque made it seem much faster, and it
was far more economical than the 528i and the old
525tds. More importantly, it was incredibly smooth
and refined, a first for diesel and it suddenly gave
buyers a real option to petrol. Early 1998 also saw
the addition of the four-cylinder 520d and the 525d
– both turbocharged and both taking advantage of
the new direct injection technology, this meant that
buyers could benefit, no matter what their budget,
important year for you, but it was the year in
which BMW would launch what was set to
become one of its most successful models,
and one of its best. The E39, the fourth
generation 5 Series, made its first appearance in the
autumn of 1995 and from the off it was clear that
BMW was on to a winner. Of BMW’s various designs
over the years, this was one of the best and it
managed to look fresh and new while retaining the
all-important BMW styling cues that customers held
so dear. The quad headlights were there, along with
the kidney grille and the Hofmeister kink, while on
the inside the car retained the driver-centric layout
that BMW had become so well known for. At the
time, the E39 may have seemed like a brave
departure from the angular lines of the E34, but this
wasn’t some wild new look for the brand – it
retained the family features and the evolution of the
model was evident. The E36 and E38 had already
been launched by this stage, so the E39’s styling
brought it in line with the rest of the range and the
models echoed each other in their appearance. Yes,
it was bigger, in every dimension in fact, but its
styling was so clean, so well proportioned that it
looked nigh-on perfect. It was as sensible as its
predecessor, but it seemed more mature, more
sophisticated, the perfect way to move the 5 Series
on. The interior too had moved on, but as with the
exterior, it was a subtle evolution of the traditional
BMW values and you could see the similarities
between the E34 and E39. The centre console and
the instruments were all unmistakably BMW but the
levels of refinement and the quality of the materials
moved things up a level. The dashboard had a matt
finish, which not only looked and felt expensive but
reduced the amount of reflection on sunny days,
while the whole interior had a much smoother
design, reflecting the car’s exterior design and
eschewing the more angular aspects of the E34.
Everything had been altered slightly to make it nicer
to look at, nicer to touch and nicer to use.
Over its eight years in production, it was crowned
as the best car in the world by just about every
motoring publication on the planet, and remained at
the top of any buying guide you would care to
mention. Group tests against all and sundry were
shrugged off by the all-conquering E39, the 5 Series
always emerging the triumphant victor no matter
what it was put up against. Even in its twilight years,
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The 530d is nearly as fast in a straight
line as the 530i, more economical and
the vast reserves of torque make it
an effortless way to travel
and enjoy the diesel revolution. All petrol engines
gained double VANOS and there was a major
reshuffle in terms of power outputs and badging.
The 520i’s engine grew to a 2.2-litre, which meant
170bhp and 155lb ft of torque, while the 523i
became the 525i – peak power was now 192bhp,
but it now produced its 181lb ft of torque 450rpm
earlier than before. The 528i became the 530i
which meant power was now up to 231bhp and
torque had risen to 221lb ft: figures that put it a
whisker away from the 535i – this in turn gained an
extra 10bhp which meant it now had 245bhp and
torque also increased to 255lb ft, chopping 0.1
seconds off the 0-62mph time. The 540i’s outputs
remained unchanged, but the addition of the double
VANOS meant that both peak power and torque
were produced lower down the rev range, at
5500rpm and 3600rpm respectively. In addition to
all this, BMW made its Steptronic gearbox available
as the automatic option on all models, bar the 520d
which could only be had as a manual.
The next major change would come in 2001
when the E39 would receive its facelift, which
amounted to a number of cosmetic changes – the
smallest of these were the widening of the of the
chrome strip around the kidney grilles and the
change from square fogs to a round design. The
bigger changes involved the front and rear lights –
the latter adopted Hella’s Celis clusters, which
employed LED strips that replaced the regular rear
sidelight bulbs, creating illuminated strips that
stretched across the width of each cluster. The front
received forward-facing indicators with chrome side
inserts, projector headlights and, most importantly of
all, the angel eye halos that have proved so popular.
Equipment levels on the cars were reasonable,
without being overly generous, but any sensible
buyer will have specced the essentials, so it won’t
be too much of a concern these days. Early cars
came in either regular or SE flavour – all cars had
ABS, traction control, twin airbags and an alarm
while SE meant air-con, alloys, fog lamps and OBC.
The 540i added a six-speed manual gearbox, M
Sport suspension, electric suspension control and
rear air suspension. Options included an automatic
gearbox, which later became Steptronic, the M Sport
suspension and PDC. When the Touring was
launched, the trim levels were revised, and all cars
gained driver and passenger head airbags, SEs
received a multi-function steering wheel while 540is
got DSC III. In 1998, both the 535i and 540i
received Dynamic Brake Control and in 1999 the
first Sport models were launched. The most
desirable E39 trim, Sport, meant an aero kit, Sport
suspension, Sports seats, Sport wheel, 18-inch
alloys, brushed aluminium-look interior trim and
Sport kick plates. When the E39 received its facelift,
trim levels were again revised and the ES (Edition
Sport) model was introduced for the 520i and
525d. This took some equipment from the Sport
and some equipment from the SE and was the
cheapest variant available other than the basic-spec
model. There were also five limited edition models
produced, with each one available in a special
colour – Avus blue, Aegean blue, Midnight blue,
Champagne and Champagne II.
On the road
One of the reasons that the E39 proved so
successful was down to its exceptional driving
dynamics, which meant that no matter which
engine option you went for, you’d still be able to
experience the car’s exceptional balance and all-
round abilities. This is without a doubt one of the
reasons why the E39 was so often labelled as
being the best car in the world. The sweetest
handlers are the six-cylinder models – the relative
lack of weight over the front wheels and the use of
rack and pinion steering means eager turn-in and
precise steering with plenty of feel, allowing you to
get stuck into the back roads with vigour. While the
regular cars may be far from sporty, the
suspension allowed for a compliant and
comfortable ride but at the same time managed to
stave off excess body roll. Drive a petrol ’six and a
diesel back-to-back and you can feel the extra
weight in the nose, but it’s not enough to spoil the
fun – it’s only the V8s that suffer, partly due to
their engine weights but also due to the
recirculating ball steering. It’s not terrible, but it
does rob you of some steering feel, making the car
seem more aloof, but it’s a minor point when you
balance it against the performance.
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All cars came with a manual gearbox as standard,
which is so good that it’s a shame that the vast
majority of E39s were specced as autos. The
manual ’box features a lovely, smooth gearchange,
with a well-weighted action and a perfect throw,
allowing you to power through the ’box when the
mood takes you. The auto is an excellent ’box in its
own right, offering up creamy smooth, nearly
imperceptible shifts as it shifts up through its five
ratios. If you’re happy with an auto, then what you
really want is one of the later Steptronic-equipped
cars – while this was a still a five-speed gearbox, you
could throw the lever across to a separate plane
which then allowed you to shift up and down
through the gears by nudging the gear selector. It’s
not as good as a manual, but the extra control over
the gears is a welcome addition and makes the
automatic experience more involving.
With so many different models to choose from,
it’s hard to know where to start. First to go are the
520i, 520d and 525tds – as far as getting a taste of
the 5 Series experience goes, all three can offer you
executive motoring on a relative shoestring and all
three are fine automobiles in their own right.
However, the 525td is too unrefined and too slow,
the 520d only has four cylinders and is slower than
the 525tds and the 520i is equally underpowered
and is barely more economical than its more
powerful six-cylinder-engined counterparts. You’d do
well to spend a little more to get a slightly more
powerful Five to get the most from the experience.
The V8s weren’t especially popular when new, partly
because of the price and partly because they may
have seemed somewhat excessive, but they make a
great secondhand buy. This is mainly thanks to the
fierce depreciation which means that today the
cheapest V8s aren’t any more expensive than the
six-cylinder models. The 535i made some sense
initially but when the 530i was introduced, the two
extra cylinders and 15bhp couldn’t justify the £5,000
price difference. Now, however, it’s a great way to
get eight cylinders under your bonnet and 245bhp
with plenty of torque means brisk progress, at the
expense of petrol. V8 models came with generous
equipment levels, so you’re getting a lot of car for
your money, but for a little more money you can
have a whole lot more car with a 540i. Genuinely
fast and silky smooth, the 540i has all the same V8
charms as the 535i but with even more clout –
60mph in a shade over six seconds is not to be
sniffed at and the 540i will reach its 155mph limiter
with vigour. The difference in fuel economy between
the V8s is negligible and if something’s worth doing,
it’s worth doing right, so the 540i is the best choice
if you want the ultimate Five. Don’t expect too much
of a driver’s car though, as the extra weight and less
involving steering make the 535i and 540i better
suited to long-distance cruising than a B-road blast.
The rest of the range is so good and caters for
just about every need that it’s hard to cut it down
any further. The 523i, 525i and 525d are all
extremely capable cars – the petrols have enough
power and torque to make the E39 experience
exciting, while rack and pinion steering means you
won’t feel left-out when the roads get challenging.
The 525d is both economical and fairly quick to
boot, making it perfect for those who do a lot of
miles but don’t need the extra performance of the
530d – there’s almost nothing in it in terms of price,
mind. And so we’re left with the three best models
in the E39 range – the 528i, the 530i and the
530d. All three are quick, all three are involving and
all three are great to own and drive. The 528i is one
of the best ways to buy a great 5 Series and will
pretty much cover all bases, but if you can afford a
little more, then the 530i is easily the best all-round
E39 money can buy. The engine is as sweet as you
like, it really will do everything you need and just a
little more. The only negative that comes to mind is
that if you plan on doing a lot of miles, then the fuel
economy may be an issue – it’s not bad, but as an
auto and with a healthy dose of city driving, you
might find yourself at the pumps more than you’d
want. The 530d is the answer to all your problems,
offering great fuel economy and the serious torque
means that effortless progress is just a flex of your
foot away. Being a turbo diesel, it’s easy to get more
power out of it with a simple performance upgrade.
Price is the only thing you have to take into
consideration, as the cheapest 530ds are more than
the equivalent 530is, meaning you could save
yourself some money buying a petrol which would
cover your fuel expenses for years to come.
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