20 years later, this V-10-powered car is selling for pennies on the dollar

What can you buy for $30,000 today? On the used car market, that’s enough to buy lower variants of the likes of the Mazda MX-5 Miata, Honda Civic or the Toyota Prius. While some of these sub-$30,000 cars can be considered sporty, they are still nothing that offers powerful performance. Therefore, it is worth looking at the used market, where $30,000 unlocks some serious performance carssuch as an old BMW Z4, a Porsche Boxster or the Audi TTS.

Among these cheap performance cars, one car stands out: the 2005 BMW M5 E60. It’s one of the most underrated M5 cars of all time, with one of the last N/A V10 engines that’s powerful and loud enough to keep you entertained. It combines this performance with the true long-distance comfort of an executive sedan, and on the used market it can be yours for less than $30. Here’s more about this BMW M5 underdog selling for pennies on the dollar today.

You can buy the V-10-powered M5 today for less than $30,000

The 2005 BMW M5 E60 was the fifth generation of the M5 and differed from its predecessors in many ways. It arrived at a time when sports sedans were well established, and given the stiff competition the M5 faced, it had to deliver something no other car could. So, as BMW puts it, the M5 was “a show of performance, a statement of driving pleasure, while remaining maximally suitable for everyday use.” Although the last part is a bit debatable, today the BMW M5 E60 is legendary in its own right.

The highlight was of course the Formula 1-derived V10 engine, a first for a sedan, which delivered more than 500 hp while reaching a redline of 8,250 hp. The M5 E60 was also the first of many: the first M5 to get adaptive suspension, HUD, M Dynamic Mode and a seven-speed SMG III automated manual transmission. And while it has its shortcomings, and there are many, the BMW M5 E60 is still an excellent choice if you’re looking for an executive sedan that’s powerful and loud.

So, how much will the E60 M5 cost you? According to Classic.com, this generation of the M5 averages $27,189 today. It also reports that the lowest sale was just $3,312 and the highest was $72,500. However, expect insanely high running and maintenance costs as the V10 burns fuel and isn’t the most reliable to maintain. As is the case with any old performance car, you buy the M5 cheap, but it still commands a sports car premium. But worth it.

A Throaty V-10, like the Formula 1 engines of that time

The BMW M5 E60 was the first production sedan with a V10 engine, which was a very unusual engine configuration for production cars at the time. Yet it was the same format used in Formula 1 cars, and thanks to BMW’s involvement with the Williams Formula 1 team, the German carmaker decided to fit an F1-derived engine into the M5. The result was a high-revving, naturally aspirated 5.0-liter V10 S85 engine that produced enough power to give supercars a run for their money.

And it wasn’t just a big, burly V-10; it was produced using pure racing technology. It was littered with fancy parts, including a forged steel crank, an aluminum block with cast iron inserts, and individual throttle bodies. It also featured a DOHC with variable VANOS and hydraulic valve lifters, a quasi-dry double crankcase and a 400-volt ion current knock detection system. It was an extremely advanced power plant at the time, and it performs (and still demands) like a power plant.

Insane performance for an executive sedan

What kind of performance are we talking about? The E60 M5’s S85 V10 produced 507 hp with a redline of 8,250, the highest rev ceiling of any M engine at the time. Combined with 383 pound-feet of torque, this M5 could go from 0 to 60 miles per hour in just 4.1 seconds, which is astonishingly fast for a 20-year-old sedan. Those who have been lucky enough to drive one report smooth, linear power delivery with a searing top end, accompanied by a razor-sharp exhaust note. This is the M5 that still promises to be truly exciting for the right kind of driver.

Impeccable handling thanks to adaptive suspension

It wouldn’t be a true BMW M car without good handling, and that’s where the M5 E60 also seems to shine. When new, reviewers praised the E60 M5 for its perfect chassis balance, thanks to its signature 50:50 weight distribution. It also features hydraulic steering, which is said to be light. It’s still no roadster, though, and you’ll definitely feel its weight, especially in hard corners. It can also feel a little stiff compared to other sedans, which isn’t a problem because what you should get in return is a confidence-inspiring ride.

The BMW M5 E60 was the first M car with adaptive suspension technology, with Electronic Damper Control (EDC). This system allows you to adjust the ride between Comfort and Sport settings, and you can even set it up for track use. It was also the first BMW to feature M Dynamic Mode (MDM), an intermediate traction control setting that allows for some wheel slip. Today, MDM is present in other BMW M cars and it plays a role in making modern M cars so much fun without the risk of losing control.

It is a sleeping salon, inside and out

The M5 E60 isn’t just about high-revving, track-ready performance. BMW has designed it as an all-rounder, so that it offers a true luxury experience. On the inside, you’ll find premium Merino leather, soft-touch panels, carbon fiber, aluminum or wood trims and electrically adjustable, heated front sports seats. The cabin also received an electric tilt and telescopic steering wheel, double glazing for sound insulation, an electric trunk and rain-sensing wipers.

It also features BMW’s iDrive infotainment system, which may feel dated these days, but gets the job done. It has voice control, real-time traffic upgrade, Bluetooth support and more. Other premium features (for the time) include bi-xenon headlights, keyless entry and an optional heads-up display. It’s a pretty comfortable long-term sedan, as long as you can ignore the fire-breathing V10 engine up front.

What makes it a real sleeper today is not only the comfortable cabin, but also the understated design. Unlike modern M cars which are all about edgy styling, the M5 E60 isn’t much different from the regular 5 Series of the time. It has subtle tweaks here and there, but overall it’s a wolf in sheep’s clothing. As polarizing as Chris Bangle’s design may be, it somehow works on the M5 E60 and still holds up.

Still not the wisest choice for money-watchers

If you expect Honda-like reliability or want to keep your car expenses to a minimum, look elsewhere. The M5 E60 is not for the faint of heart. For starters, the V10 engine is thirsty and offers poor fuel economy of just 11 miles per gallon in the city and 17 miles per gallon on the highway. That gives the M5 a total range of just 230 miles and, according to the EPA, it should cost $4,500 per year in fuel alone.

That’s just the beginning, because the M5 is also an expensive car to maintain. RepairPal gives it a 2 out of 5 reliability rating, with annual repair costs of $1,173. Doesn’t sound like much, right? According to owners, the most common problem is the failure of the connecting rod bearings, which can cost between $3,000 and $6,000 in repairs. Other common problems include VANOS system malfunctions, electrical gremlins, and the rest will also cost you thousands of dollars in repairs. Not to forget: parts are scarce.

Imperfect but still a car icon

Aside from the high running costs, the M5 E60 isn’t perfect in other areas. Models with the SMG transmission don’t handle stop-and-go traffic well; the car tends to lurch forward. The suspension, while sporty, is still tuned for comfort, and the nearly 4k-pound curb weight is palpable during spirited driving sessions. To play devil’s advocate, these things mattered when the car was new and intended for daily driving. Nowadays it’s purely a weekend toy, and these are the imperfections an enthusiast would want to live with for the V-10 madness this sedan has to offer.

That’s what makes the M5 E60, despite its imperfections, such a bargain on the used market today. It is a true icon and is one of the last naturally aspirated V-10 powered cars in the world. Yes, it’s not as sharp as other M5 cars, has high running costs and isn’t the most reliable car on the market. Still, the M5 asserts itself as the underdog M5, with an F1-derived V-10 engine, sedan comfort and sleeper cab styling. It’s a package we’re unlikely to see anywhere else, especially at this price.

Source: BMW, Classic.com, RepairPal, EPA