BMW 7 Series: Two Generations in Direct Comparison
The BMW E38 (1994-2001) and its successor E65 (2001-2008) couldn’t be more different. The E38 is considered the last “true” 7 Series, while the E65 polarized with its controversial design and iDrive system. We analyze which model is the better choice today.
Generation Overview
| Feature | E38 (1994-2001) | E65 (2001-2008) |
|---|
| Designer | Joji Nagashima | Chris Bangle |
| Philosophy | Evolution | Revolution |
| Technology | Proven | Innovative |
| iDrive | No | Yes (first generation) |
| Status | Youngtimer/Classic | Used car |
Price Comparison February 2025
E38 Models
| Model | Engine | Average | Range | Listings |
|---|
| 728i | 2.8L I6 | €9,800 | €5,000 - €16,000 | 18 |
| 730i/iL | 3.0L V8 | €12,500 | €7,000 - €20,000 | 22 |
| 735i/iL | 3.5L V8 | €14,200 | €8,000 - €24,000 | 15 |
| 740i/iL | 4.0L/4.4L V8 | €16,800 | €9,000 - €28,000 | 28 |
| 750i/iL | 5.4L V12 | €22,500 | €12,000 - €38,000 | 8 |
E65 Models
| Model | Engine | Average | Range | Listings |
|---|
| 730i | 3.0L I6 | €7,200 | €4,000 - €12,000 | 35 |
| 735i | 3.6L V8 | €8,500 | €4,500 - €14,000 | 28 |
| 740i | 4.0L V8 | €9,800 | €5,500 - €16,000 | 32 |
| 745i | 4.4L V8 | €11,200 | €6,000 - €18,000 | 24 |
| 750i | 4.8L V8 | €14,500 | €8,000 - €24,000 | 18 |
| 760i | 6.0L V12 | €18,900 | €10,000 - €32,000 | 6 |
Engine Comparison
Petrol Engines in Detail
| Engine | E38 | E65 | Advantage |
|---|
| Entry I6 | M52 2.8L (193 hp) | N52 3.0L (258 hp) | E65 (Power) |
| Mid V8 | M62 3.5L (238 hp) | N62 3.6L (272 hp) | E65 (Efficiency) |
| Upper V8 | M62 4.4L (286 hp) | N62 4.8L (367 hp) | E65 (Power) |
| V12 | M73 5.4L (326 hp) | N73 6.0L (445 hp) | E65 (Power) |
Diesel Options
| Engine | E38 | E65 |
|---|
| Base | 725tds (143 hp) | 730d (218 hp) |
| Strong | - | 745d (300 hp) |
E65 Advantage: More modern, economical diesel engines
Reliability and Common Issues
BMW E38
| Problem | Frequency | Cost | Critical |
|---|
| Cooling system | High | €500-1,500 | Yes |
| Front axle | Medium | €600-1,200 | Medium |
| Electrics (windows) | High | €200-500 | No |
| A/C compressor | Medium | €800-1,500 | No |
| Automatic (5HP30) | Low | €2,000-4,000 | Yes |
Overall Rating: Good. Problems are known and usually affordable to fix.
BMW E65
| Problem | Frequency | Cost | Critical |
|---|
| iDrive system | High | €500-2,000 | Medium |
| Valvetronic | Medium | €1,000-2,500 | Yes |
| Timing chain (N62) | Medium | €2,500-5,000 | Yes |
| Air suspension | High | €1,500-4,000 | Yes |
| General electronics | High | Variable | Medium |
Overall Rating: Problematic. Electronic complexity leads to expensive repairs.
Driving Dynamics and Comfort
Steering and Handling
| Aspect | E38 | E65 |
|---|
| Steering feel | Direct, communicative | Light, comfortable |
| Cornering stability | Good | Very good |
| Agility | Good for size | Better thanks to DSC+ |
| Sportiness | 7/10 | 6/10 |
Comfort
| Aspect | E38 | E65 |
|---|
| Ride comfort | Excellent | Excellent (air suspension) |
| Sound insulation | Very good | Outstanding |
| Seats | Very good | Very good with massage |
| Climate control | Good | Very good (4-zone) |
Value Development
5-Year Review
| Model | 2020 | 2025 | Change |
|---|
| E38 740i | €8,500 | €16,800 | +98% |
| E38 750iL | €12,000 | €22,500 | +88% |
| E65 745i | €7,500 | €11,200 | +49% |
| E65 760i | €11,000 | €18,900 | +72% |
Forecast 2025-2030
| Model | Expectation | Confidence |
|---|
| E38 (all) | +40-60% | High |
| E38 V12 | +50-80% | Very high |
| E65 Pre-Facelift | +15-25% | Medium |
| E65 Facelift | +25-40% | Medium |
Running Costs Comparison
Annual Costs (Average)
| Cost Type | E38 740i | E65 745i |
|---|
| Insurance | €800 | €950 |
| Tax | €380 | €420 |
| Maintenance | €1,200 | €1,800 |
| Fuel (15,000 km) | €2,700 | €2,400 |
| Repair reserves | €1,500 | €2,500 |
| Total | €6,580 | €8,070 |
Which Model for Whom?
BMW E38 - Right for:
- Classic car lovers
- Value investors
- Experienced mechanics
- Lovers of the “old” BMW feel
- Budget: €10,000-30,000
Ideal Model: 740i with full equipment
BMW E65 - Right for:
- Tech enthusiasts
- High-mileage drivers (diesel)
- Comfort priority
- Those needing modern features
- Budget: €8,000-25,000
Ideal Model: 745i Facelift (from 2005) or 730d
Buying Recommendation
Top Pick E38
BMW E38 740iL - Average €17,500
- V8 power without V12 complexity
- Long wheelbase for maximum comfort
- Good appreciation potential
- Parts readily available
Top Pick E65
BMW E65 745i Facelift - Average €12,500
- Improved electronics after 2005
- V8 power, moderate costs
- Modern iDrive
- Still affordable, rising interest
Conclusion: E38 or E65?
E38 wins on:
- Appreciation potential
- Classic design
- Simpler technology
- Emotional value
- Reliability
E65 wins on:
- Modern technology
- Power and efficiency
- Safety features
- Daily usability
- Entry price
Our Verdict: The E38 is the better choice for enthusiasts and collectors - the last 7 Series before the digital era. The E65 offers more car for the money, but with higher risk. For daily use, we only recommend the E65 as a facelift version from 2005.
All data based on our continuous market analysis. As of: February 3, 2025