The E39 5-Series is often regarded as one of BMW's finest hours, striking a near-perfect balance between comfort, performance, and technology. While European markets enjoyed a wide range of engines, including efficient diesels and potent V8s, U.S. buyers had a more limited selection. The crown jewel of the lineup, the E39 M5 arrived in North America for the 2000 model year. Unlike previous generations, this M5 featured a V8 engine, bringing it closer in specification to its European counterpart. However, subtle differences remained, such as European models receiving a more advanced dynamic stability control system.

This 2002 M5 is what could be considered a “reference grade” example, showing just 10,775 miles at the time of cataloging. Finished in Titanium Silver, this M5 is on its second trip through the EAG workshop and needless to say, it hasn’t needed a whole lot of work from our team. This car was delivered new to Leith BMW of Raleigh, NC, and includes records dating back to the first oil change at 1,200 miles. From the factory, this M5 was optioned with a deletion of the decklid spoiler, giving it a much cleaner look.

On the inside, the car was optioned with the “Luxury” interior package in black Nappa leather. The Luxury interior features elegant vertical stitching on the seat centers and burl wood trim throughout. Black leather extends onto the dash upper and lower, and the center console. As a later M5, this car is fitted with the more attractive slim 3-spoke steering wheel with the M-color stitching, and the later wide-screen MMI system.

Powering the E39 M5 is a DOHC 5-liter V8 known internally as the S62. It is fitted with double VANOS variable valve timing, eight individual throttle bodies, and “semi-dry-sump” oiling, increasing engine lubrication under hard cornering. Rated from the factory at 394 horsepower and 369 lb-ft of torque, the S62 is an outstandingly flexible engine that will happily pull from 1,800 rpm in top gear or rev to 7,000 rpm. This engine is then backed up by a mandatory 6-speed manual gearbox built by Getrag that sends power back to a shortened 3.15 rear axle with a limited-slip differential.

At EAG, we think that the E39 M5 may be the ultimate sport sedan of all time. Although BMW has built some cars that are faster, more nimble and more luxurious inside, there was something about this car that made everything just gel perfectly.