Browse over 9,000 car reviews

Used BMW 5 Series review: 1996-2003

BMW’s 5-Series is universally admired by owners and rival carmakers alike. So much do its rivals admire it that they have regularly used it as a yardstick when developing cars of their own.

Holden used the then current 5-Series as the main benchmark when it was developing the VB Commodore in the 1970s, and again when it did the VE a couple of years back, and Ford has also used it in developing its recent Falcon models.

Remarkably, given so many companies have used it as a benchmark for their own new cars the BMW has managed to keep its allure. It seems that it remains tantalisingly out of reach.


The E39 5-Series followed one of the best, and most successful models BMW has ever produced, the E34, in 1996. Previous 5-Series BMWs were highly regarded, as can be seen by then Holden chassis guru Peter Hanenberger’s choice of the 5-Series as a benchmark for the VB Commodore in the mid-1970s, but the E34 cemented its place at the head of the pack.

It had a unique blend of chassis agility and six-cylinder sweetness in a fully equipped package able to accommodate five in refined comfort that no other carmaker could match. Even its great rival Mercedes-Benz couldn’t match it for dynamics.

The E34 really brought BMW to the attention of the Australian motoring public. Here was a good-sized car they could afford, at a pinch, if they were doing well. It’s now 20 years old, but it’s still popular with buyers of used cars.

So the E39 had lots to live up to when it was launched in 1996. Unlike the models that followed it the E39 was a mild evolution of the E34, which was wonderfully elegant with clean lines and perfect proportions. The E39 was sleeker and smoother, but it retained the elegance that keeps the E34 looking fresh even today. There were new headlights and a new grille at the front, a smoother roofline and a stubby tail reminiscent of the smaller 3-Series. It was a car that looked good from all angles, a modern classic and a worthy successor to the great E34.

The six-cylinder is BMW’s signature engine and the E39 had a number of choices of engine size. All had the silky smoothness, purposeful response, and seductive snarl that were so characteristic of BMW sixes down through the ages, but in the E39 they also delivered more power and torque for an enhanced driving experience.

They started with the 2.5-litre double overhead camshaft engine with 125 kW and 245 Nm, but for more grunt there was the 2.8-litre engine that boasted 142 kW and 280 Nm. They were followed by the sportier V8 models, which packed the considerable punch of a 180 kW 3.5-litre double overhead camshaft bent eight and its bigger 240 kW 4.4-litre brother. All were linked to a five-speed auto transmission, but it had the option of the Steptronic sequential shift that aped a manual change.

The agility of the BMW classic has always been one of its most admired attributes and the E39 could claim even better dynamics, partly because of its much stiffer body shell that gave it a very stable foundation. Independent suspension front and back with a sporty tune, precise and responsive power steering, and the power of ABS-supported disc brakes on all corners combine to deliver a dynamic driving package. All models were well equipped with all the fruit you could wish for in a prestige luxury car.


The attraction of a used 5-Series is strong for those who couldn’t or wouldn’t afford one new, but they need to be approached with both eyes open and a questioning mind. As with any used car buy the best you can afford within your budget and leave enough left over to service it.

Servicing BMWs can be expensive if you stick with the dealers. They generally give good service, but you pay top dollar for it, so link up with a specialist service mechanic with a good knowledge of BMWs and you will save heaps. Little goes wrong with BMWs on a regular basis, but brake wear is a consistent complaint with owners facing a hefty bill for replacement rotors and pads.

Look for oil leaks around the engine. A rough idle could indicate a lack of servicing and extended oil change periods. BMWs also require the factory replacement parts, like shocks, exhaust etc. to give their best, but that’s not to say non-genuine parts will completely ruin the driving experience. A BMW specialist should know which non-genuine parts can be safely used and those to steer clear of.


The 5-Series has an array of airbags to protect the occupants in the event its chassis and braking prowess aren’t enough to avoid a crash. Front and side airbags were standard across the range.


Expect to get around 11.0 L/100 km on average from a six and 13.0 L/100 km from a V8.


Ed Malek’s 2000 523i had done 79,000 km when he bought it. It was clean and tidy, performed well and passed a mechanical and safety check. He hesitated for a while before buying it, but each time he hopped back into his 2005 Magna, he was convinced he should. He was impressed with its handling, low level of road and wind noise, comfort, and safety with eight airbags. The 2.5-litre six lacks a little grunt from take-off, but on the open highway it powers along admirably. Around town he gets 10.7 L/100 km. A few rattles have developed, which he believes could be the window regulators, and the CD changer is malfunctioning.

• BMW badge cred.
• Timeless elegant looks
• Great chassis dynamics
• Sweet six under the bonnet
• Roomy interior
• Costly parts and service

Great looking and performing sporting saloon that rewards the driver.



Year Price From Price To
2003 $5,940 $14,740
2002 $5,940 $14,740
2001 $5,940 $14,740
2000 $5,610 $14,520
1999 $4,840 $12,870
1998 $4,840 $12,870
1997 $4,840 $12,870
1996 $4,730 $12,650

View all BMW 5 Series pricing and specifications

Pricing guides

Based on third party pricing data
Lowest Price
Highest Price

Range and Specs

540i Executive 4.4L, PULP, 5 SP $9,020 – 12,650 1996 BMW 5 Series 1996 540i Executive Pricing and Specs
540i 4.0L, PULP, 5 SP AUTO $7,700 – 10,780 1996 BMW 5 Series 1996 540i Pricing and Specs
525i Touring 2.5L, ULP, 5 SP AUTO $6,270 – 8,800 1996 BMW 5 Series 1996 525i Touring Pricing and Specs
Graham Smith
Contributing Journalist


Other cars to consider

1996 Mercedes-Benz E-Class
1996 Mercedes-Benz E-Class

1996 Mercedes-Benz E-Class

Pricing guide from: $17,710 – 22,440
1996 Lexus ES
1996 Lexus ES

1996 Lexus ES

Pricing guide from: $4,840 – 7,040
1996 Honda Legend
1996 Honda Legend

1996 Honda Legend

Pricing guide from: $5,060 – 7,480
Disclaimer: The pricing information shown in the editorial content (Review Prices) is to be used as a guide only and is based on information provided to Carsguide Autotrader Media Solutions Pty Ltd (Carsguide) both by third party sources and the car manufacturer at the time of publication. The Review Prices were correct at the time of publication.  Carsguide does not warrant or represent that the information is accurate, reliable, complete, current or suitable for any particular purpose. You should not use or rely upon this information without conducting an independent assessment and valuation of the vehicle.