Ultra-Buys #5: 1988 BMW M5

The first BMW M5 was a one-year wonder in North America, a glorious hybrid and a clever move on the company's part to perk up public interest in an aging design whose replacement had already been seen in spy photos. It was also a U.S. introduction for BMW's concept of a large luxury sedan that could carry four people in comfort while acting like a pure sports car. And it was an extravagant signal that the performance party interrupted by the problems of meeting fuel economy and emissions-control standards in the 1970s and early 1980s was now back in full swing.

Nineteen eighty-eight was a banner year for BMW in the U.S. market. Already doing well with a handsome coupe (the 6 Series) and three boxy sedans (the small 3, larger 5 and still bigger 7 Series), the company added three specialized headline-grabbers in a short span of time. First to arrive was the M6 coupe, followed by the M3 and then our subject car, the M5. Each caused a stir on its own; together, they focused welcome attention on BMW's ability to produce machines that catered to a small but very discriminating market.

M, an unfamiliar prefix to Americans in those days, stood for Motorsport, the BMW division charged then and now with producing high-performing exotica for its parent firm. Some products, like the M3, might have had their roots in racing, but all Motorsport-modified cars were--and are--expected to justify their significantly higher price tags by offering drivers exclusivity and uncompromising performance without any loss of good, everyday road manners. And, each in its own distinctive way, the first M-cars did exactly that.

The E28 5 Series sedan was definitely showing signs of age by 1987. Its boxy, upright shape had been acceptably contemporary when introduced in the late 1970s, but time and the arrival of aero-forms like the Audi 5000 had rendered it impossibly old-fashioned less than a decade later. A new, sleeker 5 Series was in the works and everyone knew it, but the old one had to endure a little longer. Instead of applying external band-aids of the spoiler/tape stripes/styled wheels kind, BMW opted instead to have a heart transplant performed out at the M-Werke.

European buyers were familiar with the M5 long before the first example reached our shores. When introduced in 1984, the Euro-M5 had had its smooth but understated sohc inline six replaced with a fire-breathing dohc 24-valve engine that was also supplied in the mid-engine M1 sports car and lovely M6 coupe. Its 286 bhp was sufficient to raise performance to levels usually attained by Porsches, Ferraris and the like, and improvements to suspension and brakes ensured that the speed-to-safety ratio characteristic of all BMW road cars wasn't upset. The engine was not merely a new head on an old block, though the aluminum head itself, with its intake and exhaust ports factory-polished for optimum gas flow, was certainly a major advance. The block was changed as well, with a larger bore and shorter stroke serving to increase displacement and permit higher rpm. Bosch Motoronic fuel injection, higher compression and a new, low-restriction exhaust system did their part as well.

Backing up the new muscle were a Getrag five-speed manual gearbox (no automatic was available) with ratios selected for real-world use and not EPA fuel mileage measurements, progressive-rate springs and gas shocks, wide (by 1980s standards), grippy tires and large four-wheel disc brakes with ABS. Outside, the M5 was strictly a no-frills proposition, available only in black and adorned only with those add-ons (a front airdam and flexible rear spoiler) that would serve a functional purpose. The inside was equally restrained, looking little different than the cabin of any fully equipped E28, though the sharp-eyed might note that the front seats carried additional bolstering to hold their occupants snugly at speed. The only purely decorative elements visible to either onlookers or occupants were the red, purple and blue-striped "M" badges, and even these were small enough to be considered discreet.

After three years of Europe-only M5 production, BMW chose to go to the effort and expense of building a U.S. version. Jumping through all the federally required hoops meant making changes; some were already applied to other E28 sedans and so were already approved, but the engine required some massaging. The compression ratio went down, catalytic converters went on the exhaust system and some recalibration of the engine-management system was required. In the end, that robbed the big six of 30 horses. Or, according to some BMW-philes, 50 bhp. Either way, 256 (or 236) bhp was impressive output from 3.5 liters then, and is none too shabby today.

Regardless, the North American M5 was a very rapid car--nearly as fast, in fact, as the more aerodynamic M6 coupe. Everyone who climbed into its left seat came away impressed by its mile-eating ability and liked it even better after a fast run down a winding road. Part of the praise may have been based on the M5's unique stature among sedans--except for the smaller and slower Mercedes-Benz 190E 2.3-16, it was the only four-door hot rod an American could buy at that time--but most, if recent experience is accurate, came from measurable performance mixed with undiminished luxury. Any new showroom-fresh sedan that could match the M5 in terms of speed, handling or luxury today would still be considered impressive.

By that time, the performance/luxury image BMW wanted to project was solidly in place, and the M5 gets a large share of the credit for that. Which, more than generating profits or running up large sales numbers, was what the one-year wonder from Munich was intended to do.

Then and now, the M5 is a joy to drive. As you might expect, the big inline six, so incredibly smooth and responsive, is the main attraction. It pulls and pulls, with short breaks for shifts, right up to a 140-mph cruise. The chassis does its work predictably, at first delivering mild understeer that can be replaced with a neutral cornering stance or, should the driver be feeling frisky, glorious oversteer. No need to worry about the brakes, either. And the seats, driving position and interior are closer to late-1990s standards than anyone not familiar with BMWs would expect.

After 1850 examples had been built--1370 for the U.S., all assembled in 1987 and sold as 1988 models, the rest turned out over three years for Europe--BMW sent the M5 concept on vacation, reviving it a few years later when the more contemporary replacement for the old box-shape was ready for some M-style enhancement.

The Owner's View
"I've always had a thing for four-door performance sedans," says M5 owner Randy Lacsom. The Californian bought his car new in 1987 shortly after the E28 M5 was announced, and has racked up some 208,000 miles on its odometer since.

Most of the mileage total was accumulated during the car's first few years when Lacsom's profession required him to commute some 100 miles per day. A career change that has him now working regularly in Detroit has meant that he's lately done more traveling in commercial aircraft than in his BMW.

That doesn't mean his appreciation for the M5 has cooled. Part of that comes from the car's bulletproof nature: As of now, the engine has yet to be taken apart ("It burns a half-pint of oil every thousand miles," Randy says.) and neither has the transmission ("There's a slight gear whine."). The shiny black paint is original and shows only a few minor stone chips, and the leather interior, while exhibiting some wear on areas regularly used ("The rear seats are like new.") is still clean and appealing.

A few minor problems have cropped up but far fewer than one would expect in a car that has been driven far and occasionally hard ("I used to run it in club slaloms."). At about 120,000 miles, the damper for the cam chain tensioner failed and was replaced. The throttle cable snapped once, and the original exhaust system rusted out after a mere 65,000 miles. The latter was replaced by a system fabricated locally by a friend; the new system uses one 3.0-in. outlet pipe in place of the original dual outlets.

One problem yet to be corrected is a mild case of rear suspension bushing wear. Though the effects can be felt when the car is pushed ("It feels like it has four-wheel steering."), this causes no problems in everyday use, and so repairs have been postponed for a while.

Lacsom has made a few minor modifications to his M5. A new engine-management chip and exhaust cam sprocket (both from Dinan) were installed to bring horsepower back to Euro-spec levels, H4 bulb-type headlights as used in Europe replaced the less-powerful U.S. sealed beams, and a set of wheels from a 1993 M5 were added. Initially, Lacsom feared that the new rims (17 x 8.0 in front, 17 x 9.0 in back) would cause fender clearance problems, but with low-profile tires (225/45-17 and 235/45-17, respectively) there have been no cases of tire-to-sheetmetal contact. An unexpected bonus, according to the owner, was an improvement in ride quality after the wheel/tire swap.

Barring the unforseen, the black M5 with the "1 REAL M5" license plate ("I've seen too many fake M5s in my area.") seems likely to keep its spot in the Lacsom garage for years to come: "I haven't driven anything else that can replace the performance, history and exclusivity of this car."

The View from the Parts Counter
Did anyone ever mention that BMW parts are expensive? And that parts for the M versions are even dearer? This is perhaps the primary factor to consider before taking the plunge into ownership of what is otherwise a near-ideal sports sedan.

Fortunately, cost is problem but availability, at least as of now, is not. According to Will Turner of Turner Motorsports in Amesbury, Massachusetts (800 280-6966), pieces specific to the E28 M5 and its M6 sibling (with which it shares engine, transmission and brake parts as well as driveshafts) are readily available. Better still, most other hardware and trim components interchange with the standard E28.

Back to the bad news: A cylinder head will cost upwards of $4,500 unless purchased from BMW, in which case it will cost more. Should disaster strike, new engines are available, but BMW will want $13,000 for one. By way of comparison, a replacement 528e powerplant costs a mere $4,500. Front seats are $4,000 each, a dashboard is $1,700 and a center console runs a cool $2,500. The last three are, of course, leather-clad M5-specific items.

Parts suppliers can do better on some items--ATE brake parts are just as good if purchased in an ATE box as they would be if packed in the pricier BMW box, for example--but don't expect to find bargain prices.

The View from the Service Bay
Few will accuse the E28 M5 of being unreliable. All the evidence suggests that, if given regular and thorough maintenance, it should be more reliable than many other cars. It is, in this respect, one of the better bargains among high-performance cars.

What goes wrong? Not very much. The standard rear self-leveling system can be a source of headaches if it hasn't already been replaced on a given car. Fluid leaks in the system after 80-100,000 miles will cause the M5's tail to sag; the cure is to replace the original parts (expensive) or opt for a Bilstein kit that does away with the feature but otherwise doesn't affect ride and handling.

Another suspension problem, also associated with age and mileage, is worn-out lower control-arm bushings. These are easily replaced; some technicians suggest the use of more durable bushings from the 750 Series cars.

More expensive are warped brake rotors. The discs' basic design is said to be the culprit. For all that, some shops still suggest using OEM discs as replacements, while one (Turner Motorsports) goes farther by recommending that control-arm bushings, tie rods and locating link bushes all be renewed at once.

Though service intervals are the same as those for the 528e, 533i and 535i E28s, certain operations (such as valve adjustments) take longer to perform and are, therefore, more expensive.

The final problem area reported concerns those $4,000 M5-specific front seats. In time, both the electric adjustment mechanisms and the seat frames themselves can fail. Both are repairable, but not easily. Motors, switches and the like can be replaced, and the frames can be welded, but the cost can escalate in a hurry. Symptoms of the adjusters' failure are self-explanatory, while a tilted or sagging seat may need the attention of a welder. The leather upholstery also begins to give way in time; some owners delay the onset of tears in the hides by swapping the front seats side-to-side. Eventually, no amount of leather preservative will hold off the inevitable.

Still, most service people rate the original M5 highly, though at least one believes it is overrated in this respect, and warns that high service bills could drive some budget-minded purchasers of M5s to neglect essential repairs and maintenance.

How Much?
Stu Green, BMW sales manager at McKenna Motors in Norwalk, California, hasn't had an E28 M5 pass through his lot for at least ten years. But knowledge accumulated through 20 years of involvement with BMWs has given him some idea of what you'd need to pay for this particular M5. Other sources tended to agree with his figures.

Your best chance of finding a car is through a BMW club; you'll probably end up exchanging money for car with a private owner. If so, you, like Green, should be very aware of the mileage (he'd like to see less than 80,000, a difficult proposition given BMW owners' tendencies to put their cars to serious use), service history (as always, a set of complete records tells more about the car than almost anything else), general condition (check the interior leather carefully) and lack of serious accidents in the car's past life.

You'd also want to verify that you're looking at a U.S.-legal example; a few gray-market M5s are out there, and these may have been incorrectly legalized or brutalized by European owners before they came here. And do have a qualified expert give the car a once-over before buying.

Establishing a broad, detailed price range for the survivors of a 1370-car production run is just not possible; the best estimates follow.

$0-$6,000: Miracles and disasters. Generally, a low-buck M5 is going to have some real problems. You might want to look back at the "parts counter" section before considering anything this inexpensive, because anything broken is likely to cost more than to repair than the car is worth. High mileages and poor cosmetics should be the norm here; if that doesn't bother you, go for it. Do not buy a car with a broken engine unless you intend to dismantle it for parts or have a spare M5/M6 engine laying around.

$6,000-$10,000: Dealers will pay six or seven grand for a good used M5 and, if you look hard enough, you may be able to do the same. Any car selling in the mid-to-upper levels of this range will be clean, attractive, a good runner and have had TLC applied by careful past owners. For $10,000 you should be able to get a really nice M5 through a dealer, or a superb example from a private party.

$10,000-up: Fantasy time. Either the seller is fantasizing or you've found that once-in-a-lifetime dream-machine that has low miles, an impeccable service pedigree and shines as though just off the showroom floor. If the latter, indulge yourself but remember that anything much over 11 or 12 Gs is probably too much to pay, even for perfection.

Alternatives
A disappointed M5-seeker has a number of choices when hunting for a substitute. None of them are quite perfect, but all have something to recommend them. And let's face it: Tracking down one of the few remaining E28 M5s is going to be flat impossible in some parts of the country.

That said, consider the basic E28 5 Series car. These are relatively easy to find, can be picked up for reasonable money, and respond well to a host of aftermarket drivetrain beef-ups. Turbocharging was once a popular way to pump up the power, but some who took that route experienced a raft of problems ranging from minor annoyances to major meltdowns. Consult with someone with expertise in both BMWs and forced induction before trying this at home.

Another possibility is the M6 coupe. As mentioned above, this is a near-twin mechanically, is as much if not more fun to drive and has that lovely BMW coupe body. It might almost be worth leaving your friends behind in order to eliminate your need for a four-door car.

Yet another option is suggested by the last two paragraphs. Should you have access to both an E28 and a wrecked M6, you could build up a bogus M5 fairly easily. It wouldn't be original, and thus would have no resale value, but could be a real winner in every other way.

Stu Green, our contact at McKenna Motors, suggests the M3 of similar vintage as a better choice. Once again, if two doors'll do you, that substitution has some merit, too. So does a hunt for the next-generation M5 that appeared a few years later. But those are also rare and will set you back a fair number of dollars more.

Best choice? Find a really nice 535i (of all the other E28s, it will have the best performance as is), spend enough money with some of our BMW-savvy advertisers to get engine and suspension pumped up, and end up with a quasi-M5 that will keep you happy until the real thing comes along.