A Guide To Buying A 1988-1995 BMW 5-Series E34

The BMW 5-Series sedan is the bigger sibling to the 3-Series and by the time the E34 5-Series began production in 1987 it was entering its 3rd generation. While today the mid-sized executive sedan is perhaps more overlooked than the older E28 or the subsequent E39, it was a forward-thinking machine and pretty capable for the standards of its time.

With optional V8 power, a ‘touring’ wagon version, and new features inside and out it also culminates in the revered E34 M5 model. As is often the case with cars, things can be very subjective, but the E34 BMW 5-Series has a lot going for it too, as an appreciating modern classic.

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1988-1995 BMW 5-Series E34

8.90

/ 10

Key Features

• Spacious sedan body
• Iconic BMW engines under the hood
• Executive car looks, quality and image
• Accessible performance

Specifications

• Model: 5-Series
• Engine/Motor: 2.5/3.4-liter I6; 3.0/4-liter V8
• Horsepower: 168-282 hp
• Torque: 164-266 lb-ft
• Drivetrain: RWD
• Transmission: 4/5-speed automatic; 5/6-speed manual

Pros

• Strong and varied engine lineup
• Capable chassis for both cruising and spirited drives
• Well-appointed cabins with lots of available options

Cons

• Higher prices for desirable models
• Engines’ relatively high fuel consumption

Straight-Six And V8 Power For The E34 5-Series

Via: BMW

When considering the merits of the 5-Series or any BMW of the era, the engine is usually one of the highlights and in the third generation E34 the lineup starts with the 525i’s 2.5-liter, straight-six M20 engine.

With around 168 hp and 164 lb-ft it isn’t the most powerful unit around but adequate for this class of car in the late ’80s: this would later get supplanted by the newer M50-based unit with around 190 hp and 180 lb-ft of torque. Further up the lineup is the 535i’s 3.4-liter straight-six with around 208 hp / 225 lb-ft and these would be the initial engine offerings until the arrival of the 530i and 540i V8 motors (M60).

These engines are sought-after today but for the 530i at least, power wouldn’t surpass the 535i and was at around 218 hp and 214 lb-ft but was still competitive for the era. Most gearheads would surely prefer the other M60 V8; the 4-liter motor under the hood of the 540i which could offer up to 282 hp and 266 lb-ft – ample power and torque and highly competitive with contemporary sports cars like the Ford Mustang.

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The E34 5-Series Boasts Typical BMW Quality And Engineering

3 Images

Via: BMW Via: BMW Via: BMW

In contrast to many cars of the era, the 5-Series got a honed and capable chassis which could deliver high-speed cruising in comfort or hold its own on a less-than ideal twisty road. According to BMW, the base 525i car gained 300 lbs over the outgoing model, but this got covered-for with the boost in power and made up for with many improvements. With a front engine, rear-wheel drive drivetrain the car comes with either a four-speed automatic and five-speed manual, but the range-topping 540i got a six-speed manual option.

According to a contemporary review by Car And Driver magazine: “The 535i’s resulting springs, shocks, bushings, and front and rear anti­-roll bars deliver a blend of compliance and control that few cars can match. Under duress, the 535i sometimes feels a touch too soft or thwaps a bit too hard, but it typically traverses thick and thin without a flinch.”

Straight-line performance figures were also competitive – the same article points out that the mid-range 535i six-cylinder could manage a 0-60 mph run in around 7-seconds and a 148-mph top speed, figures that still look reasonable today.

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Living With A 34-Year-Old Modern Classic Sedan

Via: BMW

BMW made a point of optimizing aerodynamics with the 5-Series for 1988 and as such, although it looks similar to the preceding BMW 5-Series E28 it looks sharper and more modern.

The main differences this time around on first inspection are the front, with altered lights and ‘kidney grill’ that also incorporates the body color on some models, and it sits vertical as opposed to inclined forwards like on its predecessor which must go some way to improving the air flow. Up back, the light clusters are more modern-looking too and in general the car looks muscular and larger compared to the incumbent model.

Inside, the car is quiet at speed and the previous magazine review of the 535i suggested that the controls were precise, the pedals well-placed and the sports seats offering excellent support.

With many cars coming with leather upholstery and the cabin design clean and solid-feeling, the BMW 5-Series E34’s interior will feel like a pleasant place to be but with a lack of soft-touch materials, infotainment and the kind of dramatic design prevalent 3 decades later. Contemporary reviews praise the trunk space too, although the rear seats are perhaps best suited to average-height passengers.

As for equipment, electric windows, dual-zone temperature control and cruise control make this a car that would be easy to live with even now, especially with a stereo system swap to a newer, Bluetooth aftermarket unit.

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Finding And Buying A Modern Classic: The BMW 5-Series E34 in 2022

Via: BMW

In classic fashion, the first place we checked the average auction sales value was over at Classic.com and the average sales price over the last 5 years was around £22,000, which includes the more expensive BMW M5 version. Cheapest examples are the early 525i versions, and sales range from $2,000 to around $10,000 with many cars sporting a mileage well over 100,000 miles which we can expect for a vehicle of this age and type.

The 535i is worth an average of $12,000 and the 530i and 540i are more valued for their engines which are worth around $16,000-17,000 on average, but the best examples cost significantly more.

Any of the versions of E34 sell for under $10,000 and the best ones can reach $30,000 or more, but for under $30,000, there are various 540i models with under 100,000 miles and the valued 6-speed manual gearbox.

For another look on a different website, over on Bring A Trailer; the average sales price in 5 years also sits at between $5,000-25,000 roughly.