In the late ’90s, performance sedans weren’t really a thing. If you wanted to go fast, you’d get a car that could seat two, and if you wanted to seat more, well, you couldn’t. BMW seemed to have had enough of that, though, and they rewrote the book on fast family sedans when they introduced the big daddy of all E39s – the E39 M5.
Don’t get me wrong, there were 3 generations of the M5 before the E39 came along, and all of them were decently quick for their time. But, the E39 M5 made their capabilities and achievements seem rather humble in comparison. It’s the car that started a now two-decade-long rivalry to build the best performance executive car out there. Here’s all you need to know about the E39 M5.

BMW E39 M5: The Original V8 M5
The E39 is the fourth generation of the BMW 5 Series range and was introduced in 1995. The E39 M5, on the other hand, didn’t come out until 3 years later. In 1998, the German manufacturer showcased its super sedan at the Geneva Motor Show, and the car went into production a few months later.
This M5 was remarkable for several reasons, but one of the primary reasons it staked its place in history is that it was the first M5 to feature a V8 engine.
The S62 V8 engine
At the heart of the E39 M5, breathed a 4.9L, naturally aspirated V8 engine that produced peak output figures of 394bhp at 6,600rpm and 369lb-ft of torque at 3,800rpm. Dubbed the S62, this engine was based on the M62 from the standard 540i. Still, it featured electronically actuated throttle bodies, aluminum components in the machine (block and cylinder heads), semi-dry-sump lubrication, hollow camshafts, and a free-flow exhaust. It also featured BMW’s VANOS system (or variable valve timing) that adjusted valve actuation with oil pressure.
Taking all this power to the rear wheels was a Getrag 420G 6-speed manual, again, from the E39 540i, but with an upgraded clutch to match the increased power and torque. The differential was also modified to feature a shorter ratio and to include limited slip.
How did this translate to real-world performance? BMW stated that the E39 M5 was capable of a 0–60mph time of 4.8 seconds, with an electronically limited top speed of 155 mph. Unrestricted, there are reports of the M5 getting past the 300kph mark, but these tests weren’t official.

Overall, this M5 was notably quicker than its predecessor, the E34 M5, while also larger, more spacious, and better to drive.
Beyond The Powertrain
If you didn’t know what to look for, the E39 M5 was rather hard to distinguish from the standard 5-series. The 18-inch M5-specific wheels and the four-tipped exhaust pipes (apart from the obvious M5 badging.)
The M5 also featured a more prominent front grille that featured a chrome trim and different rear-view mirrors. Meanwhile, changes on the inside were quite apparent – M5 branded seats and stern wheel that enabled a sportier experience and added gauges that complimented all the performance it had to offer.
The M5 received mid-life updates for 2021 – halogen rims in the headlights (the popular ‘Angel Eyes’), LED tail lights, and changes to the interior. These interior changes included the steering from the iconic E46 M3, a larger infotainment screen, and added airbags.

Underpinnings
The M5’s chassis is based on the same unit used by the other V8-powered E39 models. This included the MacPherson strut front suspension and multi-link rear suspension. However, the M Division did make some tweaks, so it stayed true to the M moniker. The suspension featured a reduced spring height, thicker anti-roll bars, and more robust materials from the auxiliary rings and ball joints.
Moving on, a quicker steering ratio was used, and the brakes featured floating calipers that clamped onto larger disc brakes in comparison to those on the standard E39.
A Note For Buyers
The E39 M5, unlike its predecessor, was only available as a four-door sedan. BMW evaluated a touring iteration of the car, but financial restrictions prevented it from ever reaching production. The M5 came with only one powertrain and gearbox combo, and an automatic was never offered.
As a result, there aren’t many variants that you have to narrow down from if you’re looking to get your hands on an E39 M5. On the plus side, the ones that made it to the US market were also heavily specced and came with climate control, navigation, upmarket upholstery, and other creature comforts.

Finding a relatively affordable iteration of the car isn’t as hard as you’d think, but be wary of how well it’s been maintained. The S62 engine isn’t notorious for serious mechanical issues, but issues with the VANOS system and timing chain guides are more common and can end up costing you some serious money.
You’ll be better off paying more for a car that’s better maintained than buying one you’ll have to spend a lot of time, money, and effort on rebuilding down the line.
BMW E39 M5: The Super Sedan Dream
The E39 M5 was a cut above its predecessors, as well as its competition. However, it was also rather humble and predictable and didn’t yell for attention. By today’s standard, the powertrain and chassis components seem pretty ordinary, but many still do agree that there have been few, if any, four-door sedans that drive the way the E39 M5 does.
If you’re taking your family down the countryside or cruising down the interstate, the E39 M5 will get it done in an unmatched level of automotive bliss. Even after 23 years of being on the market, it’s all the car you’d ever possibly need.