BMW E34 M5
The last hand-built M5, with throwing-star wheels, an S38 that revs to 7,200 and a Touring version that remains one of the great enthusiast cars.
The E34 M5 is the last M5 assembled by hand at Garching, and you can feel it in the details: the panel fit, the switchgear and the way the S38 delivers power. It is also the last M5 with a naturally aspirated straight-six.
Two engines were offered: the 3.6L S38B36 through 1992 and the 3.8L S38B38 with 340 hp thereafter, the latter European-only. North America received 3.6L sedans only, 1,678 of them.
The Touring is the halo variant — only 891 built, all European, all left- or right-hand drive wagons with the same hand-built running gear. They are among the most valuable M5s of any generation.
Year by year
- 1989–1992 — 3.6L
311 hp S38B36. Throwing-star wheels with self-ventilating covers on early cars. US cars arrive 1991.
- 1992–1995 — 3.8L (Europe)
340 hp, 6-speed gearbox from 1994, revised Nürburgring suspension package and M-System II wheels.
- 1992–1995 Touring
891 built. The rarest E34 M5 body and the most desirable to collectors.
The good and the bad
Positives
- +Hand-built quality and the last naturally aspirated straight-six M5
- +S38B38 is one of BMW's great engines
- +Touring body is genuinely rare and genuinely usable
- +Comfortable enough for real long-distance work
- +Values are rising steadily for good cars
Negatives
- −Complex hand-built systems mean specialist labour costs
- −Self-levelling rear suspension (Touring and some sedans) is expensive when it fails
- −Interior electronics — OBC, climate, seats — are failure-prone
- −Rust in arches, sills and the sunroof pan
- −Parts for M-specific trim are increasingly scarce
Known faults and what they cost
- Timing chain guides and tensioner$2,500–$4,500
Age-related on all S38 engines; do it preventively.
- Self-levelling suspension (SLS)$2,000–$4,000
Fitted to Tourings and some sedans; leaking spheres and pumps are common.
- Cooling system$1,200–$2,000
Radiator, viscous fan, water pump and hoses all need periodic replacement.
- Interior electronics$300–$2,000
Pixel failure in the OBC and cluster, climate control faults and seat motor failures.
Pre-purchase inspection checklist
- 01Inspect arches, sills, sunroof drains and the spare wheel well for corrosion
- 02Verify timing chain service history and listen for chain noise on cold start
- 03Test self-levelling suspension operation if fitted
- 04Confirm all cluster and OBC pixels function
- 05Check the throttle bodies for smooth synchronised operation
- 06Look for correct M-System wheels and M-specific interior trim
Modifications for longevity
- Timing chain and guides
Replace as a set; it is the engine's main structural wear item.
- Cooling overhaul
Radiator, water pump, fan clutch, thermostat and hoses together.
- SLS refresh or conversion
Rebuild the system or convert to conventional springs with care for ride height.
- Rust prevention
Cavity wax and drain maintenance, particularly on Tourings.
- Valve adjustment
Every 15k miles, with a compression check every few services.
Modifications for performance
- 01Keep it standard
Original hand-built cars carry a clear value premium.
- 02Suspension refresh
New bushings, Bilstein dampers, correct alignment — the car feels twenty years younger.
- 03Exhaust and chip
Modest, honest gains without hurting reliability.
- 043.8 conversion for 3.6 cars
Adds real performance to US cars but must be done properly with the right ancillaries.
What they are worth
Sedans in good order have appreciated steadily; the 3.8L six-speed European cars command a premium over 3.6L examples.
Tourings are in a class of their own and trade at multiples of sedan money. Documentation, originality and rust-free shells drive every result.
Owner discussion
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