BMW 7 Series E38 (1994–2001) Reliability: A Complete Guide and Pre-Buy Advice
The BMW 7 Series E38 is the embodiment of understated luxury and German precision.
But before buying one, it is crucial to know its mechanical and electronic weaknesses .
Here is a comprehensive guide to identifying known problems and learning how to spot them during a test .
Petrol engines: powerful but demanding

M52 / M52TU 6-cylinder in-line: 728i
Known problems:
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Oil leaks (rocker cover, crankcase)
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Water pump and expansion tank are fragile.
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Faulty camshaft/crankshaft position sensors
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Worn VANOS seals
To be checked during the test:
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Smell of hot oil → probable leak
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Unstable temperature gauge → cooling system at risk
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Jerking at low engine speeds → faulty sensor or VANOS
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Metallic noise when cold → worn chain tensioner
💡 A well-maintained 728i remains one of the most reliable engines.
M62 / M62TU V8: 735i and 740i
Known problems:
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Multiple oil leaks (crankcase, valve covers, breather)
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Fragile supply chain guides
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VANOS and PCV faulty (TU versions)
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Sensitive cooling system
To be checked :
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Clunking noise when cold → worn chain guides
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Blue smoke → valve stem seals
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Unstable idle → breather problem
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Abnormal engine temperature → water pump or thermostat
💬 Noble engine, reliable after timing belt overhaul.
M73 V12: 750i / 750iL
Known problems:
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Oil and coolant leaks
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Fragile engine control units (DMEs)
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Water pump and radiator with a limited lifespan
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Very expensive maintenance
To be checked :
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Slow or hesitant start → faulty sensors
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Coolant smell → leak at the front of the engine
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Engine warning lights illuminated → dual-computer electronic management
💡 The V12 remains a mechanical marvel, but requires a substantial maintenance budget.
Diesel engines: robust but sensitive to age

M51: 725tds
Known problems:
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Fragile Bosch VP37 injection pump
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Aging turbo
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Cylinder head gasket after overheating
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Frequent oil leaks
To be checked :
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Difficult cold start → worn pump
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Black smoke when accelerating → injectors or turbo
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Rapid overheating → possible blown head gasket
💬 Reliable if properly monitored, but often overlooked in the market.
M57: 730d
Known problems:
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Fragile intake swirl flaps
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Sensitive mass airflow sensor and EGR
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Turbo to watch
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Aging injectors
To be checked :
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Blue smoke → turbocharger nearing the end of its life
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Loss of power → swirl flaps or mass airflow sensor
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Vibrations at idle → injector or engine mount
💡 Very good engine, solid once made reliable.
Automatic transmission
Known problems:
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Jerky shifting during gear changes
-
Worn torque converter
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Worn hydraulic block
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Oil leaks from the crankcase
To be checked :
-
Smooth, shock-free transition from D to R
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No wheelspin during acceleration
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Gearbox oil level correct (clean red oil)
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Recent oil change documented
💡 Oil change every 60–80,000 km = guarantee of longevity.
Suspension and steering
Known problems:
-
Worn silent blocks and suspension arms
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fragile front ball joints
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Leaky rack
-
Faulty rear air suspension (IL versions)
To be checked :
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Clunking noises at low speed → tired arms
-
Stiff or noisy steering → hydraulic leak
-
Rear end sagging after one night → tire leak
💬 A healthy E38 offers royal comfort and precise steering.
Electronics and electricity
Known problems:
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Dead pixels on screen or counter
-
Faulty ABS/DSC module
-
Power windows or electric seats stuck
-
Fussy ventilation (final resistance)
To be checked :
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All pixels must be displayed upon contact
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No engine or ABS warning lights illuminated
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Air conditioning, windows and sunroof must all work perfectly
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Stable wind speed (no random, erratic speed fluctuations)
💡 BMW electronics from the 90s are aging, but still repairable.
Cooling
Known problems:
-
Cracked expansion tank
-
fragile water pump
-
Aging radiator or thermostat
To be checked :
-
Visible cracks in the plastic of the vase
-
Abnormal pressure in the hot circuit
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Temperature gauge perfectly centered while driving
💡 Overheating = immediate danger to the cylinder head gaskets and cylinder head.
Bodywork and corrosion
Known problems:
-
Rear wings susceptible to rust
-
Corroded rocker panels and jack supports
-
Trunk or fuel filler flap edge
To be checked :
-
Run your hand behind the wings → roughness = corrosion
-
Inspect the sills and wheel arches
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Check the trunk floor under the carpet.
💬 An E38 stored indoors remains generally well protected.
Interior and comfort
Known problems:
-
Cracked driver's leather
-
Sunroof that's stuck
-
Sticky or broken buttons
-
Weakening air conditioning
To be checked :
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Electric seats → all settings must work
-
Smooth and quiet sunroof
-
Air conditioning: constant cold air
-
Check for moisture under the floor mats
💡 The interior of a well-preserved E38 remains a model of perceived quality.
Reliability verdict and quick check before purchase
| Category | Reliability | Key test being tested |
|---|---|---|
| 728i | ⭐⭐⭐⭐☆ | Leaks, stable temperature |
| 735i / 740i | ⭐⭐⭐☆☆ | Cold start clunk |
| 750i | ⭐⭐☆☆☆ | Functional electronics |
| 730d | ⭐⭐⭐⭐☆ | Turbo, smooth power |
| Automatic transmission | ⭐⭐⭐☆☆ | Gentle passages |
| Suspension | ⭐⭐⭐☆☆ | No clicking |
| Electronic | ⭐⭐☆☆☆ | No lights or dead pixels |
| Body | ⭐⭐⭐⭐☆ | Healthy rocker panels |
💬 A well-maintained E38 remains a car of character, refined and comfortable, which deserves maintenance to match its caliber.
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