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BMW 7 Series E38 buying guide

The third 7 Series, built from 1994 to 2001 with straight six, V8 and V12 petrol engines, in standard and long wheelbase (iL) form. It's a well understood car now, and its known faults can mostly be checked at a viewing.

The versions

  • 728i: 2.8 straight six (M52), 193PS, joined by a 3.0 straight six 730i (M54) in 2000
  • 730i and 740i to March 1996: 3.0 and 4.0 V8 (M60), 218PS for the 3.0
  • 735i and 740i from March 1996: 3.5 and 4.4 V8 (M62), 235PS and 286PS, revised again in 1998
  • 750i: 5.4 V12 (M73), 326PS
  • Standard and long wheelbase (iL) saloons, mostly with a 5-speed automatic

What to check on a E38 7 Series

3 model-specific things to look at when you view one. They're a starting point, not the full inspection.

  1. Bore wear on early V8s

    What to look for: Ask for the build date. On a V8 built before March 1996, listen for a rough or uneven idle and note any hesitation or poor starting from cold. Ask whether the engine has had a replacement block or new pistons, with paperwork.

    Why it matters: The early M60 V8s used Nikasil-lined bores, which could wear badly on high-sulphur fuel, losing compression. Most affected engines were repaired or replaced long ago. The M62 engines from March 1996 use a different lining and aren't affected. A compression test settles it.

  2. Rattle or clank from a V8

    What to look for: Start the engine from cold and listen at the front for a rattle in the first seconds, and again for a clank when hot. Look for oil weeping from the timing chain tensioner at the front of the engine. Note any flat performance on the drive.

    Why it matters: On the later M62 V8s, a worn VANOS unit or a failing timing chain tensioner causes these noises. A failed tensioner can damage the chain guides, so a noisy engine needs looking at by a specialist before buying.

  3. Cam cover gaskets and misfires

    What to look for: With a torch, look around the edges of the cam covers for oil. On the drive, note any misfire or roughness. Ask whether coil packs have been replaced recently.

    Why it matters: Leaking cam cover gaskets let oil into the spark plug wells, causing misfires and coil pack failures, and oil running down the block can look like a rear main seal leak. The gaskets are a known, straightforward repair.

Also in the full guide

  • Cooling system
  • Front shimmy around 50mph
  • Gearbox modes and fluid
  • Dashboard pixels and electrics
  • The cold start, test drive and paperwork checks for the exact version you're viewing

The full guide to the E38 7 Series

The CrankSight guide walks you round the car on your phone at the viewing, with every check for the exact version you're looking at: what to look for, where to find it, and what anything you find is likely to cost. As you go it builds an assessment of that car, and if you view more than one, it lines them up side by side.

£29 for the model, used on as many cars as you like, delivered within 72 hours or your money back.

General points for the model, last checked October 2026. Every car is different, so treat this as a guide to what to look at, not a verdict on any car. CrankSight is independent and has no connection with BMW.