What makes an E38 worth $20k?

[COSteve]

BaT sold a 2001 740iL last week for $22.5K Add in buyers fee and you're looking at close to $24k. Now it only had 24k miles and had some desirable features but that seems like a lot considering lots of these cars are changing hands for less than $5k. In my mind I was trying to come up with a list of must haves for a car to command that sort of price.

1. Mileage. Below what? 50k? 40k?...
2. Year. Must be 2001?
3. M-sport a must? The one mentioned above had some M-sport options since there was no true M-sport in an iL.
4. Color. ???
5. Obviously good condition/records.
6. ........help me out here.

[KinkedChrome]

BaT sold a 2001 740iL last week for $22.5K Add in buyers fee and you're looking at close to $24k. Now it only had 24k miles and had some desirable features but that seems like a lot considering lots of these cars are changing hands for less than $5k. In my mind I was trying to come up with a list of must haves for a car to command that sort of price.

1. Mileage. Below what? 50k? 40k?...
2. Year. Must be 2001?
3. M-sport a must? The one mentioned above had some M-sport options since there was no true M-sport in an iL.
4. Color. ???
5. Obviously good condition/records.
6. ........help me out here.

I think your right on with your list and order on what affects the price, but mileage seems to have by far the most affect, and the year isn't even a close second. I'm still surprised at the prices they are fetching though.

[RVAE34]

I am not sure why people are still surprised as they continue to sell for these prices. But yes, all those things are very important. The E38's are odd in that so many owners kept them immaculate with low mileage. Often they were older well off gentlemen from my experience. I'd love to see what the two 5k'ish mile cars that I know exist would go for on BAT.

[rslifkin]

E38s do seem to have an unusually big price spread between a decent example and a super clean / low mileage one. Certainly a bigger spread than a lot of cars have.

[KinkedChrome]

I am not sure why people are still surprised as they continue to sell for these prices. But yes, all those things are very important. The E38's are odd in that so many owners kept them immaculate with low mileage. Often they were older well off gentlemen from my experience. I'd love to see what the two 5k'ish mile cars that I know exist would go for on BAT.

I just don't understand the demographic that is buying them. Older millennials and young gen x'era are ripe for 90's nostalgia, but more the age for a mid life crisis mobile, which the e38 doesn't really seem like it fits that bill. Maybe baby boomers who miss the first nice car they ever owned?

[COSteve]

E38s do seem to have an unusually big price spread between a decent example and a super clean / low mileage one. Certainly a bigger spread than a lot of cars have.


I think you've hit the nail with this one. I bought a really nice one. I was hoping to spend some garage time with it but there's nothing to do and with values dropping so fast with miles I'm a bit hesitant to drive it much. I'm contemplating putting it on BaT and getting a $5k one that needs some love.

[RVAE34]

Lots of people with lots of different taste though. It just takes 2 (or more) to drive the price up. I'm 40 and a wagon and sedan fanatic having only just recently bought my first 2 seater ever. The E38 was the most expensive build I have ever done yet. At least until the Z31 is finished :rofl The point is that I love sports cars etc but I also find the E38 to be one of the best looking/handling/driving sedans ever made and don't think I am alone. We are all in here for a reason.

[KinkedChrome]

Lots of people with lots of different taste though. It just takes 2 (or more) to drive the price up. I'm 40 and a wagon and sedan fanatic having only just recently bought my first 2 seater ever. The E38 was the most expensive build I have ever done yet. At least until the Z31 is finished :rofl The point is that I love sports cars etc but I also find the E38 to be one of the best looking/handling/driving sedans ever made and don't think I am alone. We are all in here for a reason.


Yeah, I think it's just hard for me to relate because I consider the e38 as a bargain vehicle. I love the way they look, drive, ride, and the price of admission is relatively low. They are that the bottom of the depreciation curve with some non-enthusiast still driving them and keeping them on the road. Usually if people like me are interested in them, then the people with real money are not. Then again, now that I have a bunch of kids, my idea of a project car is becoming more tame and I do frequently find myself more often considering just throwing my hands up and just buying something I can enjoy right out of the gate.

[Obioban]

$20k is hell of a bargain if you get a turn key, like new car for the price. Better than anything BMW makes today, for half the price of their cheapest new car.

I think the spread exists because with how old the cars are, and the owners that some have had, there's some real POSs out there that might as well be a different car than the 20k BaT car.

I've been pondering an e38 on and off for over a decade... and if I ever pull the trigger, it'll be for a like new car. I don't mind doing mechanical work, but if a car has been smoked in, had an air freshener installed at any point, has parking lot scuffs, etc... zero interest in it. The cosmetic stuff is just cost prohibitive to tackle, and part of my enjoyment of these cars is that they're just nice things.

[RHP]

I have had a 96 for 10 years. Love it. Just gave it in near perfect running order to my daughter. Me? Found a 01 in CT single owner FL car w 90k on the OD. The car is PRISTINE. White with sand interior. They asked $2900 I got it for $2300. SO MUCH car for so little money. I had 10 others around the US between $4-8k. All interesting cars. People are fools. They don’t know what we know. Ssshhhhh

[georgebest]

I guess this is the one OP referring to: https://bringatrailer.com/listing/2001-bmw-740il-30/
In some ways it's a bargain, I'm well over $20K with mine and it will never sell over $6K because of the high mileage (160K). Much better deal to buy a low mileage one and maintain it properly. At least the metal parts will be solid, but any plastic probably needs replacement anyways.

[aom7]

I'm of a different school of thought. I feel that with most of these cars (at any mileage) approaching 20+ years old. I'd rather buy one with a good history for 5k and then set aside 15k in order to do the inevitable maint. and repairs. Like you said, the plastics and rubber on these cars fail, whether they are driven or not.

That 20k+ 7 on Bat? It's going to be a 30k+ 7 in the next 2 years after several things start cracking, leaking, busting or breaking on it.

[BR540i6]

I was watching that bid on BAT and I have to say I was surprised it went as high as it did. It is a beautiful example and I especially love the paint color, very pretty car.

[georgebest]

I'm of a different school of thought. I feel that with most of these cars (at any mileage) approaching 20+ years old. I'd rather buy one with a good history for 5k and then set aside 15k in order to do the inevitable maint. and repairs. Like you said, the plastics and rubber on these cars fail, whether they are driven or not.

That 20k+ 7 on Bat? It's going to be a 30k+ 7 in the next 2 years after several things start cracking, leaking, busting or breaking on it.

Trim pieces are crazy expensive, I'd much rather buy one with a great interior and paint regardless of the mechanical condition. Paint also looks good on this one. My dream E38 would be one in perfect cosmetic shape but broken down engine, selling for peanuts :)
But you are right, if you can find one with good history for $5K that's likely a great deal.
In general, I find it hard to find any car with proper service history, been trying to find one for my wife (not E38) for months. Not many people seem to keep the records. I have a list for my E38 down to the last washer I put in, maybe it's a bit of an overkill :)

[RVAE34]

There are plenty of mint low mileage one owner E38's out there cheap you just have to constantly search and be ready to act fast. You won't be finding those deals on BAT.

[Grady in Texas]

No one has mentioned it but you only need a 'willing buyer' :)

Said he as he discovered that a power steering line has failed and leaked away most of the fluid in the past 24 hours. Trunk lock still doesn't work. And my paint looks like cr*p. 147,007 miles though with a new transmission!

[samsonevickis]

It doesn't even have heated seats! Or heated steering wheel! Or a widescreen. JFC!

[fratrickbateman]

Things that make an E38 worth 20k

1. Artificially low interest rates
2. Booming economy
3. Speculators.


Take away those three things and this thread doesn't even exist.

[COSteve]

I guess this is the one OP referring to: https://bringatrailer.com/listing/2001-bmw-740il-30/
In some ways it's a bargain, I'm well over $20K with mine and it will never sell over $6K because of the high mileage (160K). Much better deal to buy a low mileage one and maintain it properly. At least the metal parts will be solid, but any plastic probably needs replacement anyways.


Ok so can anyone explain why this was less than half: https://bringatrailer.com/listing/1999-bmw-740i-2/?utm_source=dailymail&utm_medium=email&utm_campaign=2019-07-29

Color?

[KinkedChrome]

Ok so can anyone explain why this was less than half: https://bringatrailer.com/listing/1999-bmw-740i-2/?utm_source=dailymail&utm_medium=email&utm_campaign=2019-07-29

Color?


I was just watching this also. I can't figure it out. Maybe because it wasn't a sport model? Maybe color like you mentioned? I thought it was very well presented, seller seemed active, not sure what the deal was. BAT did seem short on action today though.

[COSteve]

I was just watching this also. I can't figure it out. Maybe because it wasn't a sport model? Maybe color like you mentioned? I thought it was very well presented, seller seemed active, not sure what the deal was. BAT did seem short on action today though.

It was not sold, reserve not met, so even BAT was thinking it was worth more. I hear they're kind of tight with reserves.
That said, in my first post list this really only had low miles/good condition and none of the other desirables. Yet the previous car didn't exactly check all the boxes either and it went over $20k.