BMW E38 7 Series: The Underrated Luxury Classic
The BMW E38: Timeless Elegance Meets Engineering Excellence
The BMW E38 7 Series (1994-2001) is regarded by enthusiasts as one of the most elegant luxury sedans BMW ever built. With its timeless design from Chris Bangle’s predecessor and outstanding technology, it represents the golden era of German engineering.
Technical Overview
Engine Range
| Engine | Power | Torque | 0-100 km/h |
|---|---|---|---|
| 728i (M52) | 193 hp | 280 Nm | 9.6 s |
| 730i (M60) | 218 hp | 290 Nm | 8.5 s |
| 735i (M62) | 235 hp | 320 Nm | 7.8 s |
| 740i (M62) | 286 hp | 400 Nm | 6.6 s |
| 750i (M73) | 326 hp | 490 Nm | 6.0 s |
| 740d (M67) | 245 hp | 560 Nm | 7.8 s |
Special Features
- Aluminum Front Section: Weight savings of approximately 50 kg
- DSP Audio System: Far ahead of its time
- Adaptive Air Suspension: Optional for maximum comfort
- Double Glazing: Standard from 1998 for quiet and insulation
Current Market Situation
Price Spectrum
Our current market data shows:
- Average Price: EUR 16,915
- Minimum: EUR 4,500 (project cars)
- Maximum: EUR 45,000 (750iL pristine condition)
- Value Stable: 740i and 750i long wheelbase versions
Price Distribution by Engine
| Model | Average | Trend |
|---|---|---|
| 728i | EUR 8,500 | stable |
| 735i | EUR 11,200 | slightly rising |
| 740i | EUR 14,800 | rising |
| 750i | EUR 22,500 | strongly rising |
| 740d | EUR 12,100 | stable |
Why the E38 is Underrated
1. Design Quality
The E38 embodies the last epoch of classic BMW design:
- Clean, uncluttered lines
- Perfect proportions
- Timeless elegance without expiration date
- No “Bangle butt” or polarizing design elements
2. Build Quality
The quality feel exceeds many modern vehicles:
- Real wood instead of plastic imitations
- High-quality leather
- Heavy, solid doors
- Precise fit and finish
3. Driving Dynamics
Despite its weight, the E38 impresses dynamically:
- Balanced weight distribution
- Precise steering
- Comfortable yet sporty suspension
- Sovereign highway performance
Buying Guide
Best Engine Choices
For Daily Drivers: The 735i offers the best balance of power, fuel consumption, and running costs. Spare parts are affordable and available.
For Enthusiasts: The 740i with its silky-smooth V8 is the heart of the range. Adequate power with acceptable consumption.
For Collectors: The 750i with V12 is the king. Higher running costs, but also the highest appreciation potential.
Known Weak Points
Engine:
- Cooling system (water pump, thermostat, hoses)
- VANOS unit on M62 engines
- Timing chain guides on V8 engines
Electronics:
- Pixel failure in instrument cluster
- Window regulator controllers
- Climate control panel
Suspension:
- Air suspension (if equipped)
- Front axle ball joints
- Rear shock absorbers
Buying Checklist
- Service history: Complete documentation is essential at this age
- Cooling system: When was it last renewed?
- VANOS: Rattling on cold start?
- Electronics: Test all functions
- Rust: Wheel arches, sills, door bottoms
Running Costs
Annual Cost Overview
| Item | 728i/735i | 740i | 750i |
|---|---|---|---|
| Insurance | EUR 600-900 | EUR 800-1,200 | EUR 1,000-1,500 |
| Tax | EUR 220-310 | EUR 350-400 | EUR 450-550 |
| Maintenance | EUR 800-1,500 | EUR 1,200-2,000 | EUR 1,500-3,000 |
| Reserves | EUR 1,000 | EUR 1,500 | EUR 2,500 |
Total Budget: Plan for EUR 2,500-4,000 annually for a well-maintained E38.
Investment Perspective
Why Buy Now?
The E38 is at a turning point:
- Youngtimer Status: Most examples are now 25+ years old
- Declining Numbers: Many have already been scrapped
- Rising Demand: Classic enthusiasts are discovering the model
- Affordable Entry: Still under EUR 20,000 for good examples
Comparison with Competition
| Model | Average | Availability |
|---|---|---|
| BMW E38 740i | EUR 16,915 | Medium |
| Mercedes W140 S-Class | EUR 14,234 | Low |
| Audi D2 A8 | EUR 8,500 | Low |
The E38 offers the best package of availability, parts supply, and driving pleasure.
Recommended Variants
Top 3 for Beginners
- 735i Short Wheelbase – Best everyday usability
- 740i Long Wheelbase – Maximum comfort, acceptable running costs
- 728i with Full Options – Lowest costs, good entry point
Top 3 for Collectors
- 750iL Individual – Ultimate luxury version
- 740i Sport – With M-package, rare and sought after
- Alpina B12 – The ultimate for BMW enthusiasts
Conclusion
The BMW E38 is an underrated luxury classic that is still affordable. With its timeless design, outstanding build quality, and satisfying driving experience, it offers everything one expects from a luxury sedan – at a fraction of the original price.
Those who acquire a well-maintained example now and treat it well could see significant appreciation in a few years. But even without that aspect: The E38 is worth every euro for drivers who appreciate genuine automotive quality.
All price data based on our current market analysis. Details on the BMW E38 model page.