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1988 BMW 7-Series Overview, Reviews, Ratings & Specs

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Jovan | November 2, 2025
The 1988 BMW 7-Series, specifically the E32 generation (1986-1994), represented BMW's pinnacle of luxury and engineering for its era. This full-size luxury sedan offered a sophisticated driving experience with its iconic styling and advanced technology. Key trims included the 735i and the more powerful 750iL. Its popularity stemmed from its blend of performance, comfort, and a distinctly German approach to luxury, setting it apart from more ostentatious rivals. New pricing was in the high $50,000s to over $80,000.
The Good

The 1988 7-Series excels in refined performance from its potent engines, exceptional ride comfort, and timeless, understated design. It offers a feeling of solid build quality and a luxurious, driver-focused cabin, appealing to those who value both an engaging drive and a serene environment.

The Bad

Potential buyers should be aware of aging electrical systems, particularly wiring harnesses and sensor failures. Transmission issues, cooling system leaks, and the eventual deterioration of interior materials like leather and headliners are also common concerns. Expensive repairs are a distinct possibility.

1988 BMW 7-Series: Quick Overview

Key Specifications for the 1988 BMW 7-Series (E32):

  • Engine Options:
    • 3.5L Inline-6 (M30)
    • 5.0L V12 (M70)
  • Horsepower:
    • Inline-6: Approximately 208-211 hp
    • V12: Approximately 295 hp
  • Fuel Economy: (Estimates, highly variable based on driving conditions and engine)
    • Inline-6: Around 15-18 MPG city / 20-24 MPG highway
    • V12: Around 12-15 MPG city / 17-21 MPG highway
  • 0-60 Times: (Estimates)
    • Inline-6: Approximately 8.0 - 8.5 seconds
    • V12: Approximately 6.4 - 7.0 seconds
  • Towing Capacity: Not applicable for this luxury sedan; towing was not a design consideration.
  • Trim-Level Features (Common on 735i and 750iL):
    • Leather Upholstery
    • Power Adjustable Front Seats with Memory
    • Automatic Climate Control
    • Power Windows, Locks, and Mirrors
    • Sunroof (often standard or optional)
    • On-Board Computer
    • Cruise Control
    • Premium Sound System
    • Anti-lock Braking System (ABS)
    • Optional features could include heated seats, rear-seat climate control, and cellular telephones in later models. The 750iL featured a significantly longer wheelbase for enhanced rear passenger space.

1988 BMW 7-Series Specifications

Vehicle Information
Year 1988
Make BMW
Model 7-Series
Trim -
Style Sedan Rear-Wheel Drive
Type Sedan
Category Compact Car
Manufacturing Details
Made In Germany
Manufacturing City MUNICH OR DINGOLFING
Dimensions
Doors 4-Door
Curb Weight -
Gross Vehicle Weight Rating -
Overall Height 55.60 inches
Overall Length 193.30 inches
Overall Width 72.60 inches
Wheelbase Length 111.50 inches
Standard Seating 5
Engine & Performance
Engine 3.4-L I6
Engine Size 3.4L
Engine Cylinders 6
Transmission 4-Speed Manual
Transmission Type Manual
Transmission Speeds 4-Speed
Drivetrain Rear-Wheel Drive
Additional Features
Anti-Brake System 4-Wheel ABS
Steering Type Recirculating
Pricing
Manufacturer Suggested Retail Price (MSRP) $54,000
Invoice Price -
Delivery Charges -

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Analysis

What Problems Does the 1988 BMW 7-Series Have?

The 1988 BMW 7-Series, while a capable luxury car, is not without its common issues, especially as it ages. Electrical gremlins are perhaps the most frequently reported problems. This can manifest as malfunctioning power accessories, instrument cluster failures, and issues with the engine control unit (ECU). The wiring harnesses are prone to degradation over time, leading to intermittent connections and sensor faults. Cooling system components, such as radiators, hoses, and water pumps, are also known to fail, leading to overheating. Transmission issues, particularly with the automatic transmissions, can arise, sometimes requiring costly rebuilds. The self-leveling rear suspension, a complex system, can also develop leaks or fail to maintain proper ride height. While specific recalls for the 1988 model year are not as extensive as for some other vehicles, general maintenance and proactive replacement of aging parts are crucial for long-term reliability. Owners often report the need for consistent, high-quality maintenance to keep these cars running smoothly. The complexity of the V12 engine in the 750iL means that repairs can be significantly more expensive and require specialized knowledge. Dashboard displays, particularly the LCD segments on the instrument cluster, are prone to fading or pixelation. Heater control valves and blower motors can also be points of failure. Ultimately, a well-maintained E32 7-Series can be reliable, but one that has been neglected will likely present a steady stream of expensive repairs.

How long will the 1988 BMW 7-Series last?

With diligent and consistent maintenance, the 1988 BMW 7-Series can achieve well over 200,000 miles, with some examples exceeding 300,000 miles. The core mechanical components, particularly the engines and transmissions, are built to last. However, long-term durability is heavily dependent on the owner's commitment to preventative maintenance and timely repairs. Weaknesses tend to emerge in the electrical systems and auxiliary components over time. Components like the cooling system, suspension bushings, and certain electronic modules are wear items that will require attention. Neglecting these can lead to cascading failures and significantly shorten the vehicle's usable lifespan, making thorough inspection and a strong maintenance history paramount for longevity.

What Technology & Safety Features are Included?

The 1988 BMW 7-Series was a technological showcase for its era, offering a glimpse into the future of automotive luxury and convenience. Standard tech features included automatic climate control, power-adjustable front seats with memory functions, and a sophisticated onboard computer system that provided information on fuel consumption, range, and exterior temperature. Entertainment was typically handled by a premium sound system, often featuring multiple speakers and a cassette player. Driver-assistance features were rudimentary by today's standards but advanced for 1988. Anti-lock Braking System (ABS) was a significant safety feature, improving stopping control. Cruise control was standard for effortless highway cruising. Optional features that pushed the luxury envelope further included heated front and rear seats, power-adjustable rear seats, a sunroof (often standard on higher trims), and even an early integrated cellular telephone in some late-production models. The 750iL model boasted an even more extensive list of standard and optional amenities focused on rear passenger comfort. Safety was a strong focus, with a robust unibody construction, crumple zones, and side-impact protection beams. Dual front airbags were becoming more common in luxury cars of this period and were likely optional or standard on later models of this generation. Unfortunately, official government crash-test ratings from organizations like the NHTSA or IIHS for vehicles from this specific year are not readily available in a comparable format to modern tests. However, BMW's reputation for solid build quality suggests a respectable performance in the safety standards of its time.

What Colors Options are Available?

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1988 BMW 7-Series Prices and Market Value

When new in 1988, the BMW 7-Series was a significant investment, with the 735i starting in the high $50,000s and the flagship 750iL easily exceeding $80,000. As expected for a luxury vehicle of this age, depreciation was steep. Today, current used market prices for the 1988 7-Series can range dramatically, from as low as $2,000-$3,000 for vehicles needing significant work to $10,000-$20,000+ for exceptionally well-maintained, low-mileage examples, especially the V12 models. Resale value is heavily influenced by condition, maintenance history, mileage, and the desirability of specific trims (V12s command a premium). Poorly maintained examples will have very little resale value due to high expected repair costs.

1988 BMW 7-Series Cost of Ownership

Owning a 1988 BMW 7-Series is generally considered costly, not economical. Insurance costs can be moderate to high, depending on your record and coverage, but are less than newer luxury cars. Fuel economy is poor, especially for the V12, with owners often paying a premium for premium gasoline. Maintenance is specialized and can be expensive, requiring mechanics familiar with older BMWs. Repairs are the biggest cost factor; parts can be pricey, and the complexity of the vehicle means labor hours add up quickly. Long-term ownership demands a significant budget for upkeep.

1988 BMW 7-Series Fuel Efficiency

Fuel Type Gasoline
Fuel Capacity 21.50 gallons
City Mileage 14 miles/gallon
Highway Mileage 20 miles/gallon

1988 BMW 7-Series Warranty

Basic
Original warranty 0 months / No data
Estimated remaining Expired
Powertrain
Original warranty 0 months / No data
Estimated remaining Expired
Rust
Original warranty 0 months / No data
Estimated remaining Expired

1988 BMW 7-Series Insurance

Insurance for a 1988 BMW 7-Series is moderately priced, reflecting its status as a Sedan with strong safety ratings and
reasonable repair costs.

How Does the 1988 BMW 7-Series Compare to Other Sedan?

The 1988 BMW 7-Series (E32) competed in the premium full-size luxury sedan segment against formidable rivals like the Mercedes-Benz S-Class (W126), the Jaguar XJ, and American luxury offerings such as the Cadillac Fleetwood Brougham. In terms of performance, the BMW offered a more driver-focused experience than many of its peers, particularly with its potent inline-six and the exquisite V12, often outperforming the V8s of its direct Mercedes competitors in raw power and refinement. The Jaguar XJ provided a more traditionally luxurious and softer ride, prioritizing comfort over outright sportiness. Feature-wise, the 7-Series was at the forefront of technology for its time, boasting advanced climate control, onboard computers, and high-quality interiors. Mercedes-Benz often matched or exceeded BMW in terms of build quality and overall comfort, though sometimes at the expense of driving engagement. The Jaguar offered classic British luxury, often with a more bespoke feel but sometimes trailing in terms of modern amenities and outright build integrity. Reliability is where the BMW, particularly the V12, can be a mixed bag compared to a meticulously maintained Mercedes-Benz S-Class of the same era, which generally holds a reputation for bulletproof durability. However, a well-cared-for 7-Series can be very reliable. Price-wise, the BMW was competitively positioned, offering a strong value proposition for its blend of performance and luxury. Alternatives that offer similar or potentially better long-term reliability while still providing luxury include a well-maintained Mercedes-Benz S-Class (W126) or perhaps a Lexus LS 400 (introduced in 1990), which redefined reliability in the luxury segment. For those seeking a more classic luxury experience, a Jaguar XJ-S or later XJ models might be considered, though often with different reliability expectations.

Final Verdict: Is the 1988 BMW 7-Series a Good Sedan?

The 1988 BMW 7-Series is ideal for the discerning enthusiast who appreciates classic German engineering, a refined driving experience, and understated luxury, and who possesses a healthy budget for maintenance and potential repairs. It is not a car for the budget-conscious or those seeking trouble-free ownership. Buying one is only worthwhile if you find a meticulously maintained example with a comprehensive service history, preferably a well-documented 735i. The 750iL is for the true enthusiast willing to accept significantly higher running costs and specialized repair needs. It's a rewarding classic if you're prepared for the financial commitment, offering timeless style and impressive performance for its age.

1988 BMW 7-Series Owner Reviews

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Jovan

Jovan specializes in interpreting vehicle records and making sense of VIN data. With over 10 years of experience in the automotive data industry, his work ensures that every report is clear, accurate, and useful for car buyers.