BMW E38 7 Series: The Classic Investment
The Last True 7 Series
The BMW E38 (1994-2001) is considered by many to be the pinnacle of 7 Series development. The combination of classic elegance, superior technology and timeless design makes it a sought-after collector’s item.
Technical Highlights
Engine Range
| Engine | Power | Displacement | Special Feature |
|---|---|---|---|
| 728i | 193 hp | 2,793 cc | Entry level |
| 730i | 218 hp | 2,979 cc | M60 V8 |
| 735i | 238 hp | 3,498 cc | Best seller |
| 740i | 286 hp | 4,398 cc | Sporty |
| 750i | 326 hp | 5,379 cc | V12 flagship |
| 740d | 245 hp | 3,901 cc | Diesel luxury |
Why the E38 is Special
Design:
- Last classic BMW design language
- Elegant proportions
- Timeless interior
Technology:
- Before the iDrive era
- Analog instruments
- Hydraulic power steering
Quality:
- German manufacturing
- Premium materials
- Durable mechanics
Current Market Situation
Price Development 2020-2024
| Year | Average | Minimum | Maximum |
|---|---|---|---|
| 2020 | €8,500 | €3,000 | €28,000 |
| 2021 | €10,200 | €3,500 | €32,000 |
| 2022 | €12,800 | €4,500 | €38,000 |
| 2023 | €15,200 | €5,500 | €45,000 |
| 2024* | €16,500 | €6,500 | €52,000 |
*Forecast based on current trends
Price by Engine
| Variant | Average | Trend |
|---|---|---|
| 728i/730i | €11,500 | +8% p.a. |
| 735i | €14,200 | +12% p.a. |
| 740i | €16,800 | +15% p.a. |
| 750i/iL | €24,500 | +18% p.a. |
| 740d | €13,500 | +10% p.a. |
Why Buy Now?
Investment Arguments
1. Historic Vehicle Registration from 2024/2025 The first E38s are turning 30 and can be registered as classic cars:
- Cheaper insurance
- Flat-rate vehicle tax
- Free access to environmental zones
2. Last Generation Before Electronics Dominance
- No complex iDrive problems
- Repairable without special tools
- Spare parts still available
3. Film and Cultural Icon
- James Bond “Tomorrow Never Dies”
- Numerous other film appearances
- Symbol of the 90s era
4. Underestimated Potential Compared to other classics:
| Model | Price 2020 | Price 2024 | Increase |
|---|---|---|---|
| BMW E38 750i | €12,000 | €24,500 | +104% |
| Mercedes W140 S500 | €14,000 | €18,000 | +29% |
| Porsche 996 | €32,000 | €55,000 | +72% |
Buying Guide
The Best Variant
For beginners: 728i/730i
- Lower acquisition costs
- Cheaper maintenance
- Solid value appreciation
For enthusiasts: 740i
- Best balance of power and cost
- V8 experience
- Strong demand
For collectors: 750iL
- Absolute flagship
- V12 exclusivity
- Highest value appreciation potential
Known Weak Points
Engine:
- Cooling system (water pump, thermostat)
- Vanos on M62 engines
- Oil leaks
Suspension:
- Front control arms
- Rear self-leveling
- Steering box
Body:
- Sills and wheel arches
- Trunk lid edge
- Door bottom edges
Electrics:
- Pixel failure in instrument cluster
- Window regulators
- Central locking
Buying Checklist
| Check Point | Priority | Cost Risk |
|---|---|---|
| Service book | High | - |
| Rust inspection | High | €3,000-8,000 |
| Self-leveling | Medium | €1,500-3,000 |
| Vanos noises | Medium | €800-1,500 |
| Pixel display errors | Low | €200-400 |
| Air conditioning | Medium | €500-1,500 |
Running Costs
Annual Costs (Average)
| Item | 728i | 740i | 750i |
|---|---|---|---|
| Insurance | €450 | €580 | €720 |
| Vehicle tax | €320 | €440 | €550 |
| Service | €600 | €800 | €1,200 |
| Wear items | €800 | €1,000 | €1,400 |
| Total | €2,170 | €2,820 | €3,870 |
*With historic registration, tax and insurance drop significantly.
Investment Strategy
Recommended Approach
- Set budget: Minimum €12,000 for decent examples
- Be patient: Wait for the right vehicle
- Set priorities:
- Condition over equipment
- History over mileage
- Originality over tuning
Return Expectation
| Purchase Price | Forecast 2027 | Return p.a. |
|---|---|---|
| €15,000 | €21,000-24,000 | 12-17% |
| €25,000 | €35,000-40,000 | 12-17% |
| €40,000 | €55,000-65,000 | 11-16% |
Model Alternatives
Similar Investment Opportunities
- Mercedes W140: Direct competitor, similar potential
- BMW E39 540i: Smaller class, V8 experience
- Audi A8 D2: Aluminum pioneer
Conclusion
The BMW E38 7 Series is more than a used car - it’s a time capsule of 90s automotive technology. The combination of availability, price level and value appreciation potential makes it one of the most interesting investments in the classic car market.
Those who acquire a well-maintained example with complete history now can expect significant value increases in the coming years.
Find detailed price information on our BMW E38 model page.