By the turn of the millennium, the BMW 7-Series was in its third generation, with its replacement all set to debut. The flagship executive sedan had garnered quite an impressive reputation, and enthusiasts were looking forward to what the German manufacturer had in store. Unfortunately, what came about happened to be one of the most polarizing cars the Bavarian marque has produced.
The BMW E65 7-Series, largely thanks to its appearance and unreliable electronics, almost immediately became the most disliked model the manufacturer ever sold in our market. Yet, despite its many shortcomings, it went on to become the highest-selling 7-Series model of all time.
Over 20 years after the BMW E65 was first introduced, you can find pre-owned examples for just a few thousand dollars, making them rather lucrative; but should you buy one? This article answers that very question, along with an in-depth look at what makes the BMW E65 the infamous proverbial black sheep it is.
BMW E65 — A Change of Tide
The BMW E65 had the enormous task of replacing the BMW E38 7-Series, one of the most loved iterations of the car. Chris Bangle, Chief of Design at the time and the man in charge of conceptualizing some of the most iconic BMWs ever made, was tasked with overseeing how the new 7-Series would look. While it was Adrian van Hooydonk’s (BMW’s current Head of Design) design that was finally approved, it was under Bangle’s direction.
The three generations of the car that preceded it, the E23, E32, and E38, had a rather conventional styling with predominantly straight lines and sharp edges. BMW wasn’t pushing any boundaries with their designs, which is why these cars have become such timeless classics.
Meanwhile, the BMW E65 stepped away from that very notion and was unlike any of its predecessors. The E65 had done away with a lot of its sharp, simplistic lines, the signature L-shaped tail lights, and an elongated boot lid that had received only mild approval with the previous model. In fact, critics dubbed this new rear-end design ‘Bangle Butt,’ which in retrospect is rather harsh considering the E65’s design truly separated it from the rest of BMW’s lineup aesthetically.
Understandably, the new styling split opinions, with the majority disliking the manufacturer’s new design language.
However, public image aside, the BMW E65 did introduce multiple firsts for the manufacturer and the automotive industry. It was the first BMW to feature the manufacturer’s iDrive infotainment system, an electronic smart key, and the world’s first production V12 engine to use direct injection.
Unconventional Interior Styling
The BMW E65 was vastly different on the inside as well. Unlike its predecessors, which featured a conventional console-mounted gear lever, this 7-Series featured a steering-column mounted stick. This transition saw the introduction of two cup holders on the central console — something the preceding E38 had none of.
However, not all of the changes to the interior had some sort of functional benefit. For instance, the buttons to adjust the electronic seats were moved from the traditional place on the side of the seat to the inside of the raised central console, making the controls somewhat counterintuitive to use.
Available Powertrain Option
The BMW E65 was in production from 2001 to 2008, during which several models powered by multiple engines were made. As we mentioned above, the range-topping model of the range, the BMW 760i, was the very first production car to feature a V12 engine with direct injection.
The N62 V8 engine, the first to use a continuously variable-length intake manifold and the manufacturer’s ‘Valvetronic’ variable valve lift, which along the VANOS system, completed the variable timing kit that BMW would continue to use until today. All the E65 models also came with a six-speed automatic transmission.
While the E65 cars were powered by a range of engines, only a few made their way to the North American market. This included the N62 aboard the BMW 745i, the 750i, and the N73 in the top-of-the-line BMW 760i.
That said, here’s a list of all the engine and gearbox options that the BMW E65 was produced with:
Petrol
- 2004–2005 3.0L inline-six M54B30 in BMW 730i, producing 228 hp at 5,900 rpm and 221 lb-ft of torque at 3,500 rpm.
- 2005–2008 3.0L inline-six N52B30 in BMW 730i, producing 255 hp at 6,600 rpm and 221 lb-ft of torque at 2,500–4,000 rpm.
- 2001–2004 3.6L V8 N62B36 in BMW 735i, producing 268 hp at 6,200 rpm and 266 lb-ft of torque at 3,700 rpm.
- 2004–2008 4.0L V8 N62B40 in BMW 740i, producing 302 hp at 6,300 rpm and 288 lb-ft of torque at 3,500 rpm.
- 2001–2004 4.4L V8 N62B44 in BMW 745i, producing 329 hp at 6,100 rpm and 332 lb-ft of torque at 3,600 rpm.
- 2004–2008 4.8L V8 N62B48 in BMW 745i, producing 362 hp at 6,300 rpm and 361 lb-ft of torque at 3,400 rpm.
- 2002–2008 6.0L V12 N73B60 in BMW 760i, producing 439 hp at 6,000 rpm and 443 lb-ft of torque at 3,950 rpm.
As you can see, the BMW E65 had an impressive range of engine options, but in the U.S. and Canadian markets, we were restricted to choosing between the V8 and V12. While they weren’t the most reliable machines out there, the performance they had to offer was simply exceptional, and they’re quick even by today’s standards.
Diesel
BMW also produced three diesel models of the BMW E65 — the 730d, 740d, and the 745d — but, unfortunately, none were ever sold over here.
- 2002–2005 3.0L inline-six turbo M57D30TU in BMW 730d, producing 215 hp at 4,000 rpm and 369 lb-ft of torque at 2,000 rpm.
- 2005–2008 3.0L inline-six turbo M57D30TU2 in BMW 730d, producing 228 hp at 4,000 rpm and 384 lb-ft of torque at 2,000–2,750 rpm.
- 2002–2004 3.9L V8 twin-turbo M67TUD40 in BMW 740d, producing 255 hp at 4,000 rpm and 443 lb-ft of torque at 1,900–2,500 rpm.
- 2005 4.4L V8 twin-turbo M67D44 in BMW 745d, producing 295 hp at 4,000 rpm and 516 lb-ft of torque at 1,750–2,500 rpm.
- 2005-2008 4.4L V8 twin-turbo M67TUD44 in BMW 745d, producing 325 hp at 3,800 rpm and 553 lb-ft of torque at 1,900–2,500 rpm.
BMW E65 — Features and Technology
The BMW 7-Series has always been the car that the manufacturer uses to introduce new technology and features, and the E65, at its prime, was no exception. It was the first BMW to feature adaptive headlights, a DVD-based GPS navigation system, and active anti-roll bars that used a hydraulic servo to counteract body roll.
The E65 was also the world’s first car to have an electric parking brake that would automatically engage in heavy traffic or when the ignition was turned off.
It’s most famously known for debuting the original iDrive infotainment system that could be controlled via a knob on the central console, as we’ve so commonly seen with models that followed. While the iDrive system combined navigation, air-con, music, and other settings into a single system, it was pretty rudimentary. It received a lot of criticism for having complicated menus and a poor user interface.
BMW E65 Through the Years
Over its 7-year production run, the BMW E65 received several updates. Some of them, like the 2005 facelift, were rather substantial, including new engines and changes to the design. The updates ensured that the car stayed at the forefront of the executive automotive space and addressed some issues with the original iterations.
2003 update
In 2003, just a couple of years after the BMW E65 was introduced, the manufacturer updated the iDrive system to include a faster processor, and a ‘Menu’ and ‘Customizable’ buttons were added below the central knob.
2005 Facelift
Like with almost all of BMW’s cars, the E65 7-Series underwent a facelift, and the models that followed are referred to as the post-LCI (Life Cycle Impulse) versions and vice versa. The update included significant changes, notably revised front and rear styling that wholly altered the car’s look. The manufacturer also offered conversion kits that allowed pre-LCI E65 owners to purchase the new bodywork.
Other changes included a more straightforward iDrive interface and an updated adaptive cruise control system.
Lastly, in the North American market, the BMW 740i was replaced by the 745i, which included a larger, more powerful engine.
2005 update
The last set of notable updates that the BMW E65 received was in 2005, when the company introduced BMW night vision and high-beam assistant.
Is the BMW E65 7-Series Reliable?
Unfortunately, the BMW E65 is one of the least reliable BMWs ever made. On paper, the engines that powered it were really impressive, but they featured new and rather complex technology for the time. As a result, there were several mechanical issues that owners had to deal with.
It was the same case with the electronics as well. The E65 introduced some revolutionary features, but with often poor execution.
If you’re in the market for a pre-owned BMW E65, the most important thing to look for is a complete and tidy service history. If the previous owners can show you exactly what work has been done to the car, it’s a good sign that they have looked after it well.
BMW E65 — Pre-Purchase Inspection and Common Problems
The BMW E65 models were unreliable even when they were new, and time hasn’t really helped. A pre-owned example you’re looking at is at least 15 years old and has likely been owned by multiple people. Understandably, there are some issues that you may be forced to deal with once you get yourself the keys to the car.
Below, you’ll find some of the most common issues that plague the BMW E65, along with the accompanying symptoms. This should also allow you to look for these issues on a car you’re looking at, so you can make an informed decision.
Powertrain
As with any vehicle, the engine and gearbox on the BMW E65 are some of the most expensive parts to fix. The top-of-the-line BMW 760i, with its massive V12 engine, had a rather long list of problems since it was one of the most complex engines on a production car at the time. The rest of the lineup, though not as troublesome, had their fair share of issues, too.
Timing Chain Related Issues
Timing chain-related issues also troubled the previous generation of the 7-Series, and it was most common on the V8-powered models. In our market, that included the BMW 745i and the 750i. The most commonly affected part is the timing chain tensioner which ensures that the tension of the timing chain is always correct. If it’s too loose, the chain can slip off and cause catastrophic damage to the engine.
Another frequently affected component was the timing chain guides responsible for holding the chain in place. The guides are made of plastic to avoid metal-on-metal contact with the timing chain. Understandably, the plastic is not as durable as metal and wears out with time. It’s been designed to last over 100,000 miles, but several owners have experienced premature failure.
While there’s no way to avoid a timing chain-related failure, proper maintenance and care during regular intervals should delay the inevitable. Preemptive measures will also work out to be significantly less expensive than having to replace the timing chain, tensioner, or guides. If your timing chain is wearing out, you’ll likely hear a whining sound from the engine bay. In most cases, the check engine light on your dashboard will also illuminate, and an on-board diagnostic tool should help you narrow down on whether it’s a timing chain issue.
The Valve Stem Seals
Another one of the more notoriously common issues with the BMW V8 engines, and the N62 in particular, is the failure of the valve stem seals. The N62, with its DOHC layout, features 32 valves, each of which has a stem seal. These seals ensure that oil in the cylinder head does not leak into the combustion chamber and regulate the lubrication of the intake and exhaust valves.
As you can imagine, if oil leaks into the combustion chamber, it can result in improper combustion, sludge build-up, and eventually seize the engine. Unfortunately, the stem seals on this engine were not made of durable materials and would degrade prematurely.
Some signs you should be looking out for are increased oil consumption, smoke from the exhaust during a cold start, and white-blueish-colored smoke during regular running.
Cooling Issues
Problems with the cooling system on the BMW E65 are something else that was carried over from the previous generation. The fourth generation of the 7-Series had one of the more complex powertrains of its time. Sadly, the cooling system that ensured it was performing at the proper temperatures featured a few fairly unreliable components.
The most notable culprits were the radiator and the viscous fan. Like its predecessor, the radiator on the E65 was encased in a weak plastic housing prone to breaking near the top hose connection. The issue was that the housing alone could not be replaced, and the only solution was to change out the entire radiator — an expensive fix for what is effectively cracked plastic.
If the housing is cracked, there should be a coolant leak which is easy to spot. Coolant leaking onto high-temperature components around the engine will often result in a cloud of thick white smoke from the engine bay.
Another problematic component is the viscous fan which may not rotate at the required speed. If there’s a problem with this fan, you’ll notice that the engine overheats suddenly when the car is stationary but then almost immediately cools down as you start to move.
Valve Cover Oil Leaks
Oil leaks have troubled BMW owners for decades, and it’s something you might have to deal with even on a modern-day version of the car. One of the most common areas of an oil leak on these German machines is around the valve cover. The valve cover is made of plastic and uses a rubber gasket.
Considering the high temperatures they are subject to, they are prone to hardening and cracking over time. While this is normal and should be expected after about 100,000 miles, improper maintenance can cause it to happen much sooner.
Check with the previous owner if they’ve had the valve cover replaced recently. If yes, it’s almost a given that the gasket has also been swapped for a new one. Nevertheless, it’s always a good idea to check for signs of an oil leak. Around the valve cover is the most obvious place to look. Keep the engine running and see if you can spot oil build-up around the valve cover.
Alternator Bracket Oil Leak
Check any BMW E65 forum, and you will find multiple reports from owners who’ve faced oil leaks from the alternator bracket. As its name suggests, the alternator bracket holds the alternator in place with the engine, and if it cracks or comes loose, it can result in an oil leak.
Like with the valve cover, it’s a part subject to high temperatures. The multiple heat cycles cause it to wear out and fail. We recommend getting it checked every time you’re having the oil changed to see whether it’s on the verge of failure.
Valvetronic Motor Oil Leak
The BMW E65 introduced Valvetronic, the manufacturer’s variable valve lift technology. The tech was still in its nascent stages, and while it was pretty reliable overall, it did have some issues. The Valvetronic system comprises a Hydraulic Valve Adjuster (HVA) that can sometimes cause problems.
If there’s something wrong with the HVA, you should be able to hear a ticking sound from the engine. Leaving this unaddressed can cause severe damage to the camshaft and even the valve shaft. Other symptoms include an inconsistent idle and misfires.
Interior, Exterior, and Electronics
The BMW E65 was a significant step ahead of its predecessor in terms of features, performance, and technology. Unfortunately, the manufacturer seems to have released a lot of this new equipment before thoroughly testing any of it for longevity and reliability. Apart from the aforementioned mechanical issues, which are expectedly expensive to resolve, these cars also suffered from several other problems.
Faulty Electronics
The most troublesome aspect of owning a BMW E65 was the then-new iDrive system. It was the first to feature on a BMW and was riddled with issues. Apart from a terribly hard user interface, the iDrive system was also highly glitchy. Owners have found that one aspect of its malfunction can render the entire system unusable.
For example, even if there is an issue with your navigation module, the iDrive system locks you out completely — you will not have access to the radio, phone, or any other car settings typically controlled via iDrive.
Drivers have also found that a fault with the iDrive system is accompanied by constant loud beeping and warning messages that can be extremely bothersome.
BMW sorted out many of the issues with the original iDrive system with the post-LCI cars, and several owners have swapped out the units in their pre-LCI models for the newer version.
Other common issues with the electronics include failing power windows and stuck buttons on the central console.
Other Things to Look Out For
As we said above, BMW introduced several new technologies with the BMW E65, and you should get all of them checked before purchasing a car. If possible, spend the money on having the car looked at by a technician with access to the proper diagnostics tools.
Some other elements you should be checking are the active anti-roll bars, the power steering, components of the suspension for rust or any damage, and the airbags.
Is It Worth Buying a BMW E65 7-Series in 2022?
The BMW E65 7-Series is one of the most problematic models the German manufacturer has ever sold in our market. That said, there are two sides to every story, and thousands of enthusiasts have owned the car without running into any serious issues and love it for what it is.
Until the E65 came about, it seemed that BMW focused solely on building a proper driver’s car — no unnecessary electronic wizardry or gimmicks. Perhaps it’s the fact that it changed with the E65 that garnered the vehicle a bad rep.
Despite this, this is the highest-selling 7-Series ever made, which attests to the fact that BMW did something right. When in running order, the 7-Series has many impressive features, and in the right spec, you could get an entertaining, engaging engine under the hood. If you’re ready to deal with some of its many issues, the low prices they’re currently available for are enough reason to consider getting your hands on one.
Keeping Your BMW E65 Running
At the end of the day, you can prevent spending a lot of money on fixing your BMW E65 if you take the proper preemptive maintenance measures. Here at Bimmers.com, we offer one of the largest catalogs of Genuine BMW, OEM, and aftermarket parts for the engines that power your car.
To find what you’re looking for, head to our store and select your car using our car selection tool. Once you choose your vehicle, any search will only return parts that are a guaranteed fit for your E65.
