Is NOW the Time to Buy? | E39 M5 Market Analysis

the m5 has been a staple in bmw's lineup for a little over 36 years and you can certainly make the argument that no generation wears the badge quite as well as the e39 for some the e39 is the last real m5 that exhibits pinnacle bmw engineering when their design was modest and performance was engaging even today there's no shortage of hype surrounding this unassuming sedan so naturally took it upon myself to figure out how much it would cost to purchase the legendary e39 m5 so you wouldn't have to but first let's take a trip back to the late 90s production for the north american spec began in september 1999 for the 2000 model year and ended four years later in june 2003. during that time a little over 20 000 m5s were built for all markets which is actually more than the previous two generations combined with nearly 10 000 e39s making it to american soil bmw undoubtedly had high expectations for the e39 and proved that they weren't afraid to shake things up by ditching the beloved inline-six for something completely new to the m lineup a 4.9 liter v8 when you look at the performance figures it immediately becomes clear why the e39 was showered with superlatives in the early 2000s capable of producing 394 horsepower and 369 pound-feet of torque the s62 will scream to its 7000 rpm redline with help from its double vano system and eight individual electronically controlled throttle bodies all of this performance wrapped up in a sleek and luxurious package came at a cost though with most brand new e39 m5s falling somewhere between 70 and 75 000 but that was two decades ago so in today's video we're analyzing every e39 m5 sale on the automotive auction site bring a trailer to see how time has influenced the value of these cars along the way we'll talk about which color combos demand a premium and discuss how model year mileage condition and number of owners affect the ultimate sale price let's get into it alright so after analyzing over 5 million worth of e39 m5 sales on bring a trailer the first sale in our data set dates back to october 2014. it's worth noting that sales really didn't start picking up until july of 2016 which leaves us a solid four and a half years of history to work with in that time bringing trailers hosted a total of 240 e39 m5 auctions with 82 of those auctions resulting in a sale for the purposes of this video we're going to focus on the 197 m5s that were sold the cheapest m5 was a 2000 model year dressed in titanium silver with a black sport interior that had seen 144 thousand miles nine owners and came with a clean carfax that sold for less than 10 grand in september 2018. more recently there was a 2002 sterling gray m5 with 141 000 miles on the clock that sold for just under 14 000 in november 2020 although this one did have some imperfections on the opposite end of the spectrum the most expensive m5 was a one owner two thousand model year draped in le mans blue with the silverstone sport interior and only had 41 000 miles on the clock that sold for 75 thousand dollars in april 2019. what makes this particular car special is the dinen s3 package that was installed in 2006 which includes a number of performance oriented upgrades that allow the s62 engine to crank out an advertised 621 horsepower and 502 pound-feet of torque dinen achieved these impressive numbers by installing a centrifugal supercharger high flow intake larger throttle bodies tuned velocity stacks stainless headers and several other modifications that reportedly set owners back an additional seventy thousand dollars at the time of install since there were no special packages offered for the e39 from the factory dinan's array of mechanical upgrades is said to improve upon a vehicle that was already extremely impressive all while offering a four year 50 000 mile warranty we'll take a look at how those cool little build plates enhance the e39's value later but before we do you need to know that the average m5 in our data set sold for just over 25 five with 88 597 miles on the clock while the median car rang in right at 22 000 despite the pandemic 2020 has been the best year yet for e39 and 5's auction numbering trailer with 56 cars sold for an average price of 28 791 dollars and 2021 seems to be continuing that upward trend in fact the average sale price during covid increased by a little over eighteen hundred dollars when compared to the preceding 12 month period even with increased average miles and more units sold our data set supports the assertion that values likely bottomed out sometime in 2016 and have slowly been creeping up ever since now let's talk color the most common exterior color sold in our data set was titanium silver at 46 units for an average price of 24 221 the second most common color was carbon black which sold 37 units for an average price just shy of 26 000 the most expensive color was oxford green which sold three units for an average price of thirty eight thousand seven hundred fifty dollars while anthracite metallic occupies the bottom position with an average price of about eighteen thousand two hundred fifty two dollars obviously you'd expect the specialty colors to rank toward the top but i still think it's interesting to see how each color falls within the lineup moving to the interior there are two overarching upholstery options available for the e39 sport or luxury i don't want to get super technical here with what distinguishes the two but i'll include links in the description if you're interested in more detail so aside from the available color options the easiest thing to remember is that the luxury seats have vertical stitching while the sport seats do not when looking back at our data it's pretty clear that not much separates the two in terms of sale prices maybe you could argue that the sport option has a slight advantage but that's likely due to the larger color variety offered over its executive counterpart lemon blue proved to be the most desirable sport interior at a 18.7 markup over black while carmel occupied the top spot for the luxury option with a 19.2 premium over its only counterpart bringing all of the interiors together it's clear again that the specialty colors proved to be value adders in our data set now what about those dine-in upgrades we were talking about earlier dine-in offered four signature series options for the e39 that came with serial numbered plaques and a warranty but these packages are not to be confused with the staged engine software and suspension setups they offered separately here's a breakdown of what each signature series package included some important things to note are that the s and s1 packages are largely the same except that the s1 package offered dinan's stage 1 suspension upgrade the s2 package is where you see considerable performance gains without the help of forced induction and in the top of the line s3 m5 is where you'll find the supercharger we talked about earlier unfortunately our data set only saw the s2 and s3 variants but it's clear that these packages are value adders in fact s3m5 sold for about 2.3 times more than the standard m5 on average while the s2 m5 sold for one and a half times more next we're talking mileage and as you'd expect cars with lower miles are going to be considerably more expensive than cars at the upper end of the mileage spectrum following the trend line m5s with 50 000 miles average just over 30 grand and m5s with a hundred thousand miles average almost twenty one thousand dollars obviously there are cars above and below the trend line depending on the specs and more importantly condition but it still helps to see how mileage affects the price of the e39 when considering the practicality of this super sedan finding low mileage examples is proving to be increasingly more difficult but that doesn't mean you should shy away from the higher mileage e39s that come with a solid service history while we're on that train of thought m5s with a clean accident history sold for about 2 600 more on average than cars with reported damage obviously there are ways to get around reporting some cases of damage so we're going to stay surface level on these figures just know that our data set supports the assertion that an imperfect accident history isn't going to destroy the e39's value so long as the necessary repairs were addressed comprehensively and everything else with the car shows legitimate care something else i like to keep in mind when looking at a vehicle is understanding how many times it has changed ownership for our data set it comes as no surprise that one and two owner m5s take the top spots in our list at just over 35 thousand dollars and slightly under 29 000 respectively but it's clear that once you hit three owners the value shifts away from ownership and likely toward the standard mileage specs and condition last is model year and condition of the car it's important to note that there were no major mechanical changes to the e39 m5 during its four-year production run however there were several equipment related updates introduced for the 2001 model year most notable are things like the park distance sensors that were added to the front bumper a new steering wheel that is identical to what you'd find in an e46 m3 the addition of gray instrument faces as well as updated headlights and tail lights just to name a few as you move to the 2002 and 2003 model years any further changes are essentially limited to exterior color options when looking back at our data set it's evident that we actually have a pretty decent sale distribution among the four available model years with very little price difference between the 2000 2001 and 2002 m5s we're literally talking about a spread of 195 dollars between these three years the e39s that fall within the final year of production saw the highest average sale prices at 28 700 and 43 auctions what's interesting is that when comparing our observed bring a trailer values to hagerty's valuation of the average e39 you see that hagerty projects a marginal value increase for each successive model year despite the fact that there's little difference equipment wise after 2001. now if you're looking at an m5 in above or below average condition here's a look at how hagerty's valuation breaks down by model year feel free to pause the video here or jump over to hagerty's website that i've linked in the description so you can take a look at the tools they have available over there i have to admit this is definitely useful information if you're serious about the e39 ultimately it's no doubt that we're talking about an enormous price range here that peaks at an impressive 108 grand and bottoms out at 12 700 our bring a trailer data reflects the sentiment of wide-ranging values but seems to trend lower than hagerty's estimates goes without saying that these cars really any car for that matter are only worth what someone is willing to pay for them and in the auction format it really only takes two exceptionally motivated buyers to send a listing soaring if you do a quick nationwide search for e39 is currently on the market you'll find a large spread of asking prices with specialty dealers like enthusiasts auto group at the very top end of the spectrum in fact according to eag's website they actually sold an e39 m5 with 3 000 miles for almost 200 grand that's pretty incredible but with that said our data supports the notion that low mileage well taken care of m5s from the 2003 model year that are painted anything other than the silver's grays and blacks are going to command the highest prices on top of that you should expect an additional premium for m5s that are fitted with dinan's signature series upgrades everything we've talked about today seems to suggest that the e39 value is steadily rising but there are certainly deals to be found if you're willing to move quickly when you find the right car personally i think it's hard to beat the value proposition of the e39 m5 when you can get one of the best performance sedans ever made for less than 25 000 but let me know what you think of this generation of the m5 in the comments down below while you're down there feel free to suggest a car that you'd like to see me analyze next and drop a like if you found this video helpful thanks for watching and i'll catch you in the next video

Channel: Tire Kickers

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Id: 3eYWICcL4NE

Length: 10min 15sec (615 seconds)

Published: Sun Feb 28 2021