The 1988-1995 BMW M5 (E34) is the third generation of the M5 performance sedan, known for being the final M5 powered by a modified M1 straight-six engine (S38 I6). Enthusiasts praise its smooth, responsive, and powerful engine, calling the 1991 model "almost perfect." It is famous for its analog driving feel and high-performance capabilities disguised in a subtle sedan body. While revered, it is infamous for having several weak spots, including cylinder head and timing belt issues on early models. Today, the E34 M5 is a highly sought-after classic, ideal for collectors, weekend drives, and those seeking a visceral, old-school BMW M experience.
Owning a 1988-1995 BMW M5 Sedan involves higher costs due to rare and expensive S38 engine parts. Suspension parts also wear quickly due to the heavy engine. Annual maintenance averages $1,173, and insurance costs are generally comparable to similar performance cars.
Affordability Calculator
We have preconfigured our calculator for this vehicle
Why Use This Calculator?
Unlike calculators from banks or dealerships that may encourage overspending, our tool provides neutral, conservative estimates based on proven financial principles. Whether you're financing or paying cash, we help you understand what you can truly afford.
For Loan Financing:
- •Safe Range: Follows the , ensuring you can comfortably afford your car payment
- •Stretch Range: A moderate approach that balances affordability with your goals
- •Lender Max: What banks typically approve, but may strain your budget
For Cash Purchases:
- •Conservative: Uses 5% of net worth, maintaining strong financial reserves
- •Safe: Uses , following the recommended guideline
- •Stretch: Uses 15% of net worth, for when you want to prioritize the car