This luxury sedan delivers Toyota-like, rock-solid reliability for under $20,000

In the car market, $20,000 isn’t a lot of money. Spend that much money and you’ll only get the Hyundai Venue, Kia Soul or Nissan Sentra. They’re good cars in their own right, but they don’t scream luxury or performance by any means. So if you want to experience a luxury car experience on a budget, your best bet is to look to the second-hand market. It’s full of some excellent used examples, ranging from old, boxy Lexus models to sensual Maserati sports sedans.

But caution is advised when choosing a cheap used luxury car. They are expensive to maintain and repair, and they can quickly drain your savings. That’s why it’s best to choose something reliable, something that would make a Toyota blush. Fortunately, you have some good options here outside the Lexus circle, such as the 2016 BMW 5 Series. This model is reliable, powerful, beautiful and very affordable on the second-hand market. Here’s how.

The 2016 BMW 5 Series still has miles to go before retirement

J.D. Power gave it a reliability score of 88/100

The BMW 5 Series is the executive sedan of the German giant, which has been in production since 1972. Currently in its eighth generation, it costs well over $60,000. But you don’t have to spend that much money to experience that level of BMW finesse and luxury, thanks to the 2016 BMW 5 Series, the last of the sixth-generation F10 facelift. It’s one of the best examples of a used BMW, and even after a decade it’s still relevant, thanks to its stately looks, range of engine options and, surprisingly, reliability.

One of the highest rated BMW models

The sixth-generation facelift of the 5 Series arrived in 2014, but we’ll focus on the last model year of the generation, as by then BMW had already fixed the common issues that plagued previous models. As a result, this 5 Series receives a “Great” quality and reliability rating of 88 out of 100 by JD powerwhich is among the highest for all BMWs in recent decades. That suggests high reliability, but just because it’s a BMW, don’t expect it to be cheap to run. This is a good, reliable car IF you have the budget for its maintenance.

• Reliability Rating: 88/100 (JD Power)

• Annual maintenance costs: $697 to $892 (RepairPal)

There are literally thousands of them on sale today

BMW reportedly sold 2.5 million F10 5-series, and the 2016 model was quite popular in the segment at the time. They are a dime a dozen on the used market these days. So finding a well-maintained 2016 BMW 5 Series shouldn’t be a problem if you have a little patience and know where to look. Either way, you can find this car on the used market for as little as $10,000 for the 528i models, but really well-maintained, low-mileage examples can go as high as $20,000.

2016 BMW 5 Series Trims and Average Used Price

You get what you pay for

The BMW 5 Series is available in many variants, starting with the base 528i, which retails for just $9,000 for the front-wheel drive model. Meanwhile, the mid-range 535i and 535d variants should cost you around $12,000 to $13,000. These models are the best choice because they offer plenty of inline-six power and luxury features. If you’re looking for more performance, you can even opt for the V8-powered 550i, which averages around $14,000.

However, expect to pay BMW Premium for maintenance

No matter how bulletproof the car may be, it’s still no Toyota. It is a German executive sedan and a maintenance premium is charged for it. And if this is your first luxury car, maintenance costs can catch you by surprise if you’re not prepared for it. For example, it rides on standard 255/45 R18 run-flat rubber, which can cost around $1,000 per set, while the brake pads can cost you $150 to $450 per axle. That’s why it’s best to have a flexible budget when buying a used 5 Series so you don’t encounter any surprises.

Low repair costs for a BMW

RepairPal suggests an annual repair cost of $700 to $900 depending on the model you choose, which isn’t too bad for a BMW sedan. Still, that’s a best-case scenario. If something does go wrong, the BMW 5 Series can quickly burn a huge hole in your wallet. For example, a steering column adjustment motor can cost almost $1,000, an oil pan gasket replacement can cost almost $1,900, and a turbocharger replacement can cost up to $7,500. It’s a solid car, but it’s one neglect away from a money pit.

Common problems with the 2016 BMW 5 Series

Even the most reliable cars are not without problems, and the same is the case with the BMW 5 Series. Look for problems with the spark plugs, water pumps, stretched timing chains, leaking valve cover gaskets, overheating turbos and premature wear of xDrive differentials. So it’s best to spend some time finding a well-maintained 5 Series with a clean maintenance record. Ideally, you should also have it inspected by a professional.

A luxury sedan that has stood the test of time

The 2016 BMW 5 Series is ten years old today and remains one of the best luxury sedans you can buy on the used market. It’s part of the F10 facelift generation, which added some much-needed improvements over its predecessors. This facelift brought new models and more power, did away with the Bangle butt and included major updates such as adaptive bi-xenon headlights, updated iDrive interface and more.

Understated but unmistakably luxurious interiors

Step inside the 2016 BMW 5 Series and you’re greeted with an understated interior design that’s all about elegant restraint and not too sporty or flashy. It is beautifully finished and equipped with high-quality materials all around, including wooden inserts and leather seats with plenty of room for adults, even in the back. At the heart of the dashboard is a 10.2-inch iDrive infotainment system, which can be controlled via a rotary knob on the center console. It’s no wonder that many still praise this generation of the 5 Series for having one of the most comfortable interiors in sedan history.

There is a motorcycle for everyone

Perhaps the best thing about this 5 Series, aside from its reliability, is the breadth of engine options it offers. In typical BMW fashion, all engines come turbocharged and front-wheel drive as standard, with xDrive AWD available as an option. The base engine is the 528i’s 2.0-liter turbocharged inline-four N20 engine, which produces 240 horsepower. This engine can push the car from 0 to 60 miles per hour in a respectable 6.1 seconds, while on the RWD model it returns 27 miles per gallon.

However, if you’re serious about driving, opt for the 535i model, which comes equipped with the 3.0-liter six-cylinder N55 turbo engine, producing 300 horsepower. This model can go from zero to 60 miles per hour in 5.4 seconds and return 24 miles per gallon on the RWD model. If you like coal rolling, you can opt for the 535d, with a 3.0-liter turbo diesel engine that produces 255 hp. This model offers a decent mileage of 30 miles per gallon. BMW also offered the 550i, with a 4.4-liter V8 engine producing 445 hp, although this engine would be the most expensive to run and maintain.

2016 BMW 5 Series Trims and Specs

Understated luxury styling that still looks good

The 2016 BMW 5 Series is perhaps one of the most beautiful models in recent sedan history. Unlike its controversial E60 predecessor, it does away with the infamous bangle butt, while retaining the Hofmeister kink and traditional kidney grills. And while it may look a little dull compared to modern, edgy Bimmers, its understated appeal is hard to ignore. It’s a handsome car that still looks relevant today. Choose a good one and it might even make it to 2036 without any problems.

Source: BMW, JD power, Edmunds, Kelley Blue Book, iSeeCars, RepairPal