What the E38 Is and Its Place in BMW History
The BMW E38 is the fourth generation of the 7 Series, produced from the mid-1990s into the early 2000s. It replaced the E32 and served as BMW's technological flagship, introducing features such as satellite navigation, curtain airbags and (in some markets) an early V12 diesel. For many enthusiasts, the E38 represents the last 7 Series designed with an unapologetically driver-focused character before later generations shifted toward heavier electronic complexity.
Its restrained, elegant styling has aged remarkably well, and its cameo in the film The Transporter cemented its cult status. To understand where it sits in BMW's lineage, explore the BMW DNA overview.
The Models and Body Styles
The E38 was offered exclusively as a sedan, in standard and long-wheelbase (Li/iL) forms. The core lineup spanned inline-six, V8 and V12 power:
- 728i — entry-level inline-six, popular in Europe
- 730i — early V8 variant
- 740i / 740iL — the volume V8 models, and the enthusiast sweet spot
- 750i / 750iL — the flagship V12, offering effortless refinement
The long-wheelbase cars catered to chauffeur-driven buyers, while the standard-wheelbase 740i is often prized for its balance of performance and manageability.
Engines and Driving Character
The E38 used a broad family of powertrains. The 728i relied on the smooth M52 inline-six, while the V8 cars ran the M60 and later M62 units. The 750i flagship carried BMW's M73 V12, delivering serene, near-silent thrust. Later 740i models introduced the excellent M62 V8 with its balance of torque and cultured delivery.
Behind the wheel, the E38 feels lighter and more communicative than its size suggests. Hydraulic steering, a compliant chassis and predictable balance make it a genuinely rewarding highway cruiser. Some markets and years offered a manual gearbox, a rare and coveted configuration today.
Ownership, Collectibility and Buying Tips
The E38 has transitioned from depreciated luxury car to appreciating modern classic, especially clean 740i Sport and low-mileage examples. Before buying, check the following:
- Cooling system — plastic components and the water pump are known weak points on M62 cars
- Electronics — navigation, pixel-fade instrument clusters and comfort features
- Suspension bushings and subframe — mileage takes its toll
- V12 maintenance costs — the 750i is glorious but expensive to keep right
Always confirm history and specification with our VIN decoder. Enthusiasts cross-shopping the era's other BMWs often also consider the E52 Z8 roadster or the closely related E53 X5, which shared engineering DNA and powertrains with the 7 Series flagship.