The full E39 5-Series breakdown — year-by-year styling cues, wheel variations, interior changes, Sport vs non-Sport, engine choices, and every spec detail that matters when shopping used.
The car you're looking for is body code "E39" — BMW's 5-Series. They began making these in 1997. Beginning in 2000, BMW started offering 3 years / 36,000 miles maintenance included with all cars.
1997–2000: Either a 528 (~200HP) or a 540i (~283HP). 2001 and up: 525 (165HP), 530 (225HP), or 540i (~283HP). Drive them all. 540i six-speeds run to 60 in under 6 seconds. Pretty quick.
PP — Premium Package: Nicer power seats, auto-dimming mirror, rain-sensing wipers.
SP — Sport Package: Firmer suspension. Larger wheels (17" vs 16"). Nicer thick-leather steering wheel. The 528 is a 5-speed while the 540 is a 6-speed manual. Automatic Sport Packages didn't have Steptronic before 1999.
CWP: Heated seats, headlight washers, folding rear seats with ski pass. PDC: Park Distance Control — enhanced in 2002 with better radar. Xenon/HID: Option before 2000, standard on 540s after. Like driving with daylight.
1997–2000: Black stripe along the center bumper strip. 2001: Big facelift — "angel eyes" ring headlights, round fogs instead of square, body-color bumper strips. I liked this change enough to do it to my 2000 540.
2003: Sport Package got the M facelift — more aggressive bumper, back to black stripe, 18" wheels instead of 17".
Wheels: Vary by model and year. 528s are different from 540s. 1997–2000 are different from 2001–2002. 2003 is a whole different ballgame. Clear? Didn't think so.
Interior: Small nav screen pre-2000. Larger 16:9 screen from 2001 up. Sport seats are firmer with tighter side bolsters. Steering wheel got thicker in 01 and again in 03.
Auxiliary fan switch: Same recall as the E46 — early to mid 2001 production. Overheating, possible fire in extreme cases. Verify it's been addressed.
Radiator: Any 540 around 55K–60K miles is going to blow the radiator. Plastic radiators plus the higher torque V8 — it's that common. If mine hasn't blown by the time my CPO runs out, I'm keeping a spare in the garage.
MID lights: Dashboard display bulbs go out causing illegible text. $1,000 repair if not under warranty.
Inline 6 vs V8: I can honestly say I have only regretted buying the 540 when I think about the M5. The M5 is over-the-top drop-dead fast — the world's fastest sport sedan when introduced. I want one so badly you might be able to talk me out of my 2000 540 for the right M5.
525 vs 528 vs 530: Even if power isn't important, get the 530. All reports show the 525 as a dog. The 530s from 2001 are coming off lease into a market that doesn't want them — incredible deals available.
Auto vs Manual: I bought an automatic 540 and had it less than six months — bought it so the wife could drive it. She ended up not being able to see out of it and hated it. Sold it, bought the 6-speed. Strictly personal preference. If I lived in Atlanta traffic I'd cry and buy the auto. Or a Honda.
Warranty Extension: Extends to 4 years / 50,000 miles for around $450. For my 540 this will include the 50K Inspection 2 service which usually runs near a grand.
CPO: Costs the dealer $1,000–$1,250. They charge $1,500 or so. CPO is transferrable — if you're buying a previously-CPO'd car, the warranty transfers to you. All warranties begin from the in-service date, not the build date. My 2000 540 was built in May 2000 but not put in service until August 28, 2000 — meaning my warranty runs until August 2006.