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BMW E38 7 Series buyer's guide
1995–2001 · 740i / 740iL, 750iL (M60 V8, M62 V8, M73 V12)
Last updated
Models and engines by year
| Model | US model years | Engine |
|---|---|---|
| 740i / 740iL | 1995–1996 | M60 V8 |
| 740i / 740iL | 1997–2001 | M62 V8 |
| 750iL | 1995–2001 | M73 V12 |
US-market models. Chassis codes: E38. Not sure which one you have? The VIN check decodes year, model and engine.
Best and worst years
- Most owner complaints to NHTSA: 1998 (55 complaints, most about engine and engine cooling) and 2001 (52 complaints, most about electrical system).
- Fewest, among model years at least four years old: 1996 (18 complaints, most about fuel system) and 1999 (21 complaints, most about air bags).
| Year | Engines (BMW-acknowledged engine items) | NHTSA complaints | Most-reported components | Recalls | Warranty extensions |
|---|---|---|---|---|---|
| 1995 | M60 (0), M73 (0) | 35 | Engine and engine cooling (7), Electrical system (6) | 0 | 0 |
| 1996 | M60 (0), M73 (0) | 18 | Fuel system (4), Gasoline (4) | 0 | 0 |
| 1997 | M62 (0), M73 (0) | 35 | Engine and engine cooling (9), Suspension (6) | 0 | 0 |
| 1998 | M62 (0), M73 (0) | 55 | Engine and engine cooling (11), Electrical system (10) | 0 | 0 |
| 1999 | M62 (0), M73 (0) | 21 | Air bags (5), Hydraulic (4) | 0 | 0 |
| 2000 | M62 (0), M73 (0) | 37 | Power train (5), Tires (5) | 0 | 0 |
| 2001 | M62 (0), M73 (0) | 52 | Electrical system (13), Engine and engine cooling (10) | 0 | 0 |
Complaints are owner reports filed with NHTSA for that model year, matched to the E38 by model name, year and VIN pattern. A dash means too many of that year's complaints (more than a quarter) could belong to another generation sold the same year, so we leave it blank. These are raw counts, not rates: they aren't adjusted for how many cars were sold, and older cars have had more time to collect reports. The number after each engine counts BMW warranty extensions, class-action settlements and emissions recalls whose title names that engine, leaving out extensions on emissions-control parts; see the engine reliability ranking. More model lines: BMW best and worst years.
Warranty extensions and service campaigns 0
No BMW warranty extensions on file that list this chassis.
Filed by BMW with NHTSA. Extensions usually follow the car to later owners and can reimburse earlier repairs; a BMW dealer can confirm by VIN.
NHTSA safety recalls 0
No NHTSA recalls matched to this chassis in the 2010+ recall file.
Matched from NHTSA's public recall file by model and model year. A recall may cover only some cars from a year, and it may already have been done on yours. Check by VIN →
Test drive and inspection checklist
- Run the VIN for open recalls. Open safety recalls are free at any BMW dealer. Check on NHTSA's site or our recall page before you buy.1
- Scan for stored fault codes with a BMW-capable tool. A generic OBD reader misses most BMW modules. Specialist guides recommend a BMW-level scan (ISTA or similar) to catch faults that have been cleared from the dash but still stored.2,3
- Start it from cold. Ask the seller not to warm the car up first. Chain rattle, VANOS rattle, lifter tick and rough idle show most clearly in the first seconds after a cold start.2,4,5
- Ask a BMW dealer about warranty extensions and campaigns. Several BMW warranty extensions follow the car, not the owner, and some reimburse earlier repairs. A dealer can check the VIN. The list for this chassis is below.
- Get a pre-purchase inspection from a BMW specialist. A few hundred dollars for an independent BMW specialist is the usual advice, especially for M cars and high-mileage turbo engines.6,2
Service-history red flags
- Oil changes only at the long computer interval. Several guides advise changing oil more often than the onboard service indicator (CBS) suggests, especially with lots of city driving.5,7
- Gaps in the records around known failure mileages. If the engine section below lists a job that usually comes due at the car's mileage, ask for the invoice. A missing record isn't proof it wasn't done, but it is a negotiating point.
- Tuned or "deleted" cars. Tunes, emissions deletes and removed parts complicate warranty claims and inspections and raise wear on turbo cars. Ask, and look for aftermarket intakes, downpipes and charge pipes.
Ownership costs
Routine maintenance: oil service prices by engine size, published BMW Value Service prices (brakes, spark plugs) from 16 US dealers, and the E38 maintenance schedule.
By model year
| Year | Models and engines | NHTSA recalls | Warranty extensions | Repairs we price |
|---|---|---|---|---|
| 1995 | 740i / 740iL M60 V8 750iL M73 V12 | 0 | 0 | — |
| 1996 | 740i / 740iL M60 V8 750iL M73 V12 | 0 | 0 | — |
| 1997 | 740i / 740iL M62 V8 750iL M73 V12 | 0 | 0 | — |
| 1998 | 740i / 740iL M62 V8 750iL M73 V12 | 0 | 0 | — |
| 1999 | 740i / 740iL M62 V8 750iL M73 V12 | 0 | 0 | — |
| 2000 | 740i / 740iL M62 V8 750iL M73 V12 | 0 | 0 | — |
| 2001 | 740i / 740iL M62 V8 750iL M73 V12 | 0 | 0 | — |
Recalls and warranty extensions are counted when their published model-year range includes that year. Each one may cover only some cars, so check by VIN. Repairs counted are the ones whose engine was offered that year.
Sources
- NHTSA recall lookup by VIN
- The Stable: E92 M3 buyer's guide
- Euro Premium Parts: E60 M5 reliability guide
- carsales: buying a used F30 3 Series (2015–20)
- carsales: buying a used E90 3 Series
- Road & Track: E46 M3 buyer's guide
- Drive-My: E60 5 Series buying guide (six-cylinder petrol)
Retrieved 2026-10-18. Bulletins and recalls come from NHTSA filings; owner prices come from the public posts linked on each job page.