11 Reasons the BMW E39 5 Series Is the Smartest Used Car You Can Buy Right Now

There’s a certain kind of car person who knows. They’ll tell you the E39 is the high-water mark for BMW — the last 5 Series built before the company got distracted by touchscreens and complicated electronics. They might be right.

I’ve owned a 520d E39 for two years now. It’s not the fastest, not the fanciest, and definitely not the cleanest example out there. But it’s been one of the most satisfying cars I’ve ever lived with. Here’s why — and what to watch out for if you’re thinking of buying one.

11. It’s Genuinely Easy to Work On

This car was built in an era when engineers actually tried to make things simple. Instead of making you undo fifty bolts to change your oil, they designed it so you could reach things. And because the E39 has such a massive following, there’s a YouTube tutorial for basically every problem you could encounter.

Parts are cheap and widely available. Regular maintenance is straightforward. This is a car you can actually learn to work on, rather than one you have to take to a specialist every time something goes wrong.

For context: I recently watched a video where changing a light bulb on a Renault Scenic required removing the entire headlight assembly. On the E39, it’s right there under the hood. That’s the difference.

10. The Modding Potential Is Endless

When you buy a car, you want to make it yours. And the E39 is one of the most mod-friendly platforms ever built. There are millions of aftermarket parts available.

I’ve done the LED angel eye conversion, updated the grille, replaced the badges, and fixed the headlight adjusters. That’s just the front end. If you want more, there’s no shortage of options — suspension, exhaust, wheels, interior upgrades, the list goes on. The E39 community is vast, and everything has been tried, documented, and refined.

9. It’s More Powerful Than You Think

My 520d is the lowest-power model you could get — 136 horsepower from the factory. And honestly? It’s a blast.

It has enough power to overtake safely, enough torque to feel punchy around town, and enough character to make every drive enjoyable. It’s not a sports car, but it doesn’t need to be.

And if you want more, the tuning potential is there. A simple remap can take this engine from 136 to around 166 horsepower. The tunes aren’t expensive either. I haven’t done it yet, which says something about how fun the car is in stock form.

If you get one of the more powerful models — or heaven forbid, the M5 with its 400 horsepower V8 — you’re in for a serious treat.

8. It’s Reliable

My car has around 390,000 kilometres on it. That’s a lot. And in two years of ownership, I’ve had exactly one mechanical issue: the turbo, which was already bad when I bought it. Since that was fixed, it’s been essentially trouble-free.

Of course, any 20-year-old car will need maintenance. Bushings, suspension components, wheel bearings — these things wear out. But mechanically, the E39 is fundamentally sound.

One thing worth noting: the 520d with the M47 engine doesn’t have swirl flaps, which is a common failure point on other BMW diesels. So realistically, the only major concern is the turbo, and with regular maintenance, even that shouldn’t be a problem.

7. It’s Cheap to Own

Parts are readily available. Maintenance is manageable. Fuel consumption on my car averages around 6.5 litres per 100 kilometres — not bad for something this enjoyable to drive.

In many countries, older cars also benefit from lower taxes and registration fees. The E39 is old enough and modest enough in power that you’re not going to get hammered by the government every year just for owning it.

6. It Looks Fantastic

This is subjective, obviously. But I’d argue the E39 is one of the best-looking BMWs ever made. Maybe one of the best-looking cars, full stop.

The angel eyes. The LED tail lights on facelift models. The proportions. The way the design has aged — it doesn’t look dated; it looks timeless. There isn’t a bad angle on this car.

And this is the base model. The M-Tech package makes it look even better. We’re not buying this car just because it’s cheap and reliable. We’re buying it because it looks great.

5. It’s Practical

I’m 195 centimetres tall. Sitting behind my own driving position, I still have plenty of legroom and headroom. I’ve had five people in this car, and the middle seat is actually usable.

The trunk is enormous. I’ve transported electric scooters, lawn mowers, and all manner of things that shouldn’t fit in a sedan. You can option fold-down rear seats for even more space, or go for the Touring wagon if you need maximum capacity.

You can even get a tow hook if you want to tow a sailboat. It’s a genuinely versatile car.

4. It Will Rise in Value

I’m not just saying this because I own one. Any used car over 20 years old has already lost most of its value. There’s essentially zero depreciation left.

Old BMWs that are well-kept hold their value remarkably well. And my prediction is that clean E39s will start to appreciate. Look at what happened to the E34 — you can’t find a good one for less than an E65 these days.

A lot of E39s were neglected, crashed, or scrapped. People gave up on them. But now, the people who had posters of these cars on their walls as kids have money. They want nice examples. And they’ll pay for them.

In short: buy one now, enjoy it for a few years, and you might even sell it at a profit.

3. Build Quality, Features, and Luxury

Everything in this car feels quality. Nothing rattles. It’s one of the most impressive things about it — when you’re used to cheaper cars where everything shakes and squeaks, the solidity of the E39 is remarkable.

And someone clearly thought about the design. The switchgear wasn’t placed accidentally. It was considered, refined, and made to feel right.

Feature-wise, the E39 debuted with some genuinely impressive technology. Six airbags for front passengers, with up to ten available in total. Dynamic Stability Control, which has saved me more times than I care to admit. Cornering Brake Control, which adjusts braking force to each wheel based on how the car is turning. These systems work, and they make you feel safe even when you’re driving enthusiastically.

And then there’s the interior. Leather seats. Leather door panels. Wood trim. Leather armrest and steering wheel. If you get one with electric seats and heated seats, it feels genuinely luxurious even by modern standards.

2. It Sounds Great

Even with the 2.0-litre diesel — the least exciting engine option — it sounds good. And that’s with the stock exhaust.

You can modify it, of course. And if you get a model with a larger engine, or a V8, it’ll sound even better. But even the humble diesel has a satisfying growl that makes you want to drive it just to hear it.

1. It’s Really, Really Fun to Drive

This is the reason. Everything else is secondary.

I smile every single time I get in this car. Even though it’s the lowest model on paper, it’s an absolute joy. It’s not fast in a straight line, but it doesn’t matter. The steering, the chassis balance, the way it communicates with you — it’s everything a BMW should be.

The manual gearbox is superb. I can’t imagine how boring an automatic would be in this car. This is a car you buy to enjoy driving, not to commute in.

BMW’s slogan at the time was “The Ultimate Driving Machine.” And with the E39, they actually delivered on it.

Four Things to Check Before You Buy

1. Check every warning light. When you turn the key, all the dashboard lights should illuminate. If the check engine light doesn’t come on, someone may have disconnected it to hide a problem. Trust me — I learned this the hard way.

2. Check for rust and vapour barrier leaks. Rust around the wheel arches is common and fixable, but rust on the underbody is a dealbreaker. Also check the vapour barriers in the doors — if they’re damaged, water gets in and you get mould. Open the doors, look for moisture or smell. If it smells suspiciously fresh, be suspicious.

3. Get the facelift version. This is about more than cosmetics. Yes, the LED tail lights and angel eye headlights look better. But the facelift also has more features — Dynamic Stability Control, rear airbags, better onboard computer, cornering brake control. You want those.

4. Get one with options. Many lower models came in poverty spec with almost nothing. You want the high cluster, electric seats, heated seats, automatic headlights, upgraded infotainment, parking sensors. The more options, the better the ownership experience.

The E39 is one of those rare cars that delivers on every front — practical, reliable, affordable, beautiful, and genuinely fun. If you’re in the market for a used car that won’t bore you, this is one to seriously consider.

Just do your homework first. And check that check engine light.