The 1989 BMW 5-Series, specifically the E34 generation (1988-1996), revitalized BMW's executive sedan lineup. Available as a sedan and later a wagon (Touring), it was lauded for its refined driving dynamics, robust build, and understated luxury. Key trims included the 520i, 525i, 530i, and the powerful M5. Its popularity stems from its blend of performance, comfort, and timeless design, making it a sought-after classic.
The Good
The 1989 5-Series offers a compelling mix of exhilarating performance, legendary BMW reliability, and a plush interior. Its elegant design appeals to aesthetic sensibilities, while its practical efficiency and solid value proposition satisfy the rational buyer. It provides a rewarding driving experience for enthusiasts and dependable transport for everyday use.
The Bad
Potential weaknesses include aging cooling systems, such as radiators and hoses, which can lead to overheating. Electrical gremlins, particularly with the wiring harness and sensors, are also common. Rust can be a significant concern, especially around wheel wells and rocker panels. Transmission issues, if not properly maintained, can arise.
1989 BMW 5-Series: Quick Overview
- Engine Options:
- 2.0L Inline-6 (M20B20) - 520i
- 2.5L Inline-6 (M20B25) - 525i
- 3.0L V8 (M60B30) - 530i (later model years for E34, 1989 primarily used inline-6s)
- 3.4L Inline-6 (M30B34) - 535i (early E34 models)
- 3.8L Inline-6 (S38B38) - M5 (later E34 models) - Horsepower:
- 520i: Approximately 129 hp
- 525i: Approximately 170 hp
- 535i: Approximately 208 hp
- M5: Approximately 310 hp (later 3.8L version) - Fuel Economy: (Approximate, varies with engine and driving conditions)
- City: 14-18 MPG
- Highway: 19-25 MPG - 0-60 Times: (Approximate)
- 520i: 10-11 seconds
- 525i: 8-9 seconds
- 535i: 7-8 seconds
- M5: 5-6 seconds - Towing Capacity: Not typically applicable or advertised for this model, as it was not designed for heavy towing.
- Trim-Level Features (General):
- Base models (e.g., 520i, 525i): Standard features included power windows, power locks, power steering, tilt steering wheel, cloth upholstery, ABS (Anti-lock Braking System), and a basic sound system.
- Higher trims (e.g., 535i): Often included leather upholstery, power-adjustable seats with memory, sunroof, upgraded sound system, automatic climate control, cruise control, and alloy wheels.
- M5: Featured sport-tuned suspension, limited-slip differential, sport seats, performance-oriented interior and exterior styling, and often more powerful engine options.
1989 BMW 5-Series Specifications
Vehicle Information
| Year | 1989 |
| Make | BMW |
| Model | 5-Series |
| Trim | - |
| Style | - |
| Type | Sedan |
| Category | Compact Car |
Manufacturing Details
| Made In | Germany |
| Manufacturing City | DINGOLFING |
Dimensions
| Doors | 4-Door |
| Curb Weight | - |
| Gross Vehicle Weight Rating | - |
| Overall Height | 55.60 inches |
| Overall Length | 185.80 inches |
| Overall Width | 68.90 inches |
| Wheelbase Length | 108.70 inches |
| Standard Seating | 5 |
Engine & Performance
| Engine | 2.5L I6 |
| Engine Size | 2.5L |
| Engine Cylinders | 6 |
| Transmission | 4-Speed Automatic |
| Transmission Type | Automatic |
| 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) | $37,000 |
| Invoice Price | - |
| Delivery Charges | - |
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What Problems Does the 1989 BMW 5-Series Have?
The 1989 BMW 5-Series (E34 generation) is generally considered reliable, but like any vehicle of its age, it has common issues. The cooling system is a frequent source of problems; plastic radiators and hoses can become brittle over time, leading to leaks and potential overheating. Water pump failures are also not uncommon. Electrical gremlins are another area to watch. The wiring harness, particularly in the engine bay, can degrade, leading to various sensor issues and intermittent problems. ABS modules and components can also fail. Early E34s, including 1989 models, may use the M20 and M30 engines, which are robust but can suffer from oil leaks from valve cover gaskets and oil pan gaskets. Fuel injectors and fuel pumps can also wear out. Suspension components like control arm bushings, ball joints, and shock absorbers will likely need replacement due to age and mileage. The manual transmissions are generally robust, but automatic transmissions can develop issues if not serviced regularly, including torque converter problems or clutch pack wear. Rust is a significant concern for E34s, especially in areas with harsh winters. Look for corrosion around the wheel wells, rocker panels, battery tray, and trunk lid. Interior components, such as headliners sagging, seat leather cracking, and dashboard pixels failing on the OBC (On-Board Computer), are common wear items. While there aren't widespread recalls specific to the 1989 model year that are still active, maintenance history is crucial. Owners who have diligently maintained their E34s typically report excellent long-term reliability, demonstrating the inherent durability of BMW engineering from this era. However, neglecting maintenance will quickly exacerbate these common issues.
How long will the 1989 BMW 5-Series last?
With regular and diligent maintenance, a 1989 BMW 5-Series can easily surpass 200,000 miles and continue to serve for many years. Many enthusiasts report their E34s comfortably exceeding 250,000 miles. The long-term durability is a testament to its robust engineering. However, without consistent upkeep, issues with the cooling system and electrical components can become significant, potentially limiting its lifespan. Proactive replacement of aging rubber and plastic parts, along with regular fluid changes, is key to maximizing its longevity and preventing costly cascading failures over time.
What Technology & Safety Features are Included?
The 1989 BMW 5-Series represented a good balance of technology and luxury for its era, though it pales in comparison to modern vehicles. Built-in tech included an On-Board Computer (OBC) that provided basic diagnostic information and trip data, often with a small LCD screen that suffered from pixel degradation over time. Entertainment typically consisted of a standard AM/FM radio and cassette player, with optional upgraded sound systems from manufacturers like Blaupunkt or Harman Kardon, offering more speakers and better sound quality. Cassette changers were also an option for longer journeys. Climate control was usually manual, though automatic climate control was a popular option, offering more precise temperature management. Driver-assistance features were rudimentary by today's standards. Cruise control was widely available. ABS (Anti-lock Braking System) was standard or a common option on most trims, significantly enhancing braking safety. Some models might have featured power-adjustable seats, often with memory settings for the driver. Safety features included seat belts for all occupants, and the E34 was known for its strong chassis and crumple zones, providing good passive safety. As for crash-test ratings, formal government crash testing for vehicles of this age, such as NHTSA or IIHS ratings as we know them today, were not as comprehensive or publicly available. However, the E34 5-Series was engineered with occupant safety in mind and generally performed well in frontal and side impacts for its time. The introduction of more advanced airbags was still a few years away for widespread adoption in this model range.
What Colors Options are Available?
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In the meantime, feel free to explore the other sections for more content.
In the meantime, feel free to explore the other sections for more content.
1989 BMW 5-Series Prices and Market Value
When new in 1989, the BMW 5-Series ranged from approximately $35,000 for a base 525i to over $50,000 for a 535i, with the M5 commanding significantly more. Like most vehicles, the 5-Series experienced substantial depreciation in its early years. However, as these cars have aged into classic or modern classic status, their depreciation has stabilized, and well-maintained examples, particularly the M5 and rarer trims, have seen their values appreciate. Current used market prices vary widely, from a few thousand dollars for high-mileage project cars to upwards of $15,000-$25,000 for excellent, low-mileage examples, especially the M5. Factors affecting resale value include condition, maintenance history, mileage, original options, and the specific model year and engine configuration.
1989 BMW 5-Series Cost of Ownership
Ownership costs for a 1989 BMW 5-Series can be moderate to high, depending heavily on maintenance and repair needs. Insurance can be surprisingly affordable for standard models due to their age, but classic car insurance is recommended for pristine examples. Fuel economy is average for its class, with inline-6 engines offering reasonable consumption for their power. Maintenance requires specialized knowledge; while parts are available, they can be more expensive than for common domestic cars. Repairs, especially for complex electrical or cooling system issues, can be costly. Overall, while not the most economical to own, its driving experience and build quality can justify the investment for many enthusiasts.
1989 BMW 5-Series Fuel Efficiency
Fuel Type
Gasoline
Fuel Capacity
21.10 gallons
City Mileage
18 miles/gallon
Highway Mileage
24 miles/gallon
1989 BMW 5-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
1989 BMW 5-Series Insurance
Insurance for a 1989 BMW 5-Series is moderately priced, reflecting its status as a Sedan with strong safety ratings and
reasonable repair costs.
reasonable repair costs.
How Does the 1989 BMW 5-Series Compare to Other Sedan?
The 1989 BMW 5-Series (E34) competed fiercely in the mid-size luxury sports sedan segment. Key rivals included the Mercedes-Benz W124 E-Class, Audi 100/200, and the Lexus LS 400 (introduced later in 1989). In terms of performance, the BMW often edged out its rivals with a more driver-focused chassis and engaging handling, especially in higher-spec models and the M5 variant. The Mercedes E-Class was renowned for its exceptional build quality and smoother ride, appealing more to comfort-oriented buyers. Audi offered its quattro all-wheel-drive system, providing superior traction in adverse conditions, though its performance could feel less sharp. Reliability is a mixed bag; while BMWs of this era are mechanically sound, they can be more prone to electrical gremlins and cooling system issues than a comparable Mercedes. The Lexus LS 400, upon its introduction, set new benchmarks for reliability and refinement, though it was more of a full-size luxury sedan and less of a sports sedan. Features-wise, BMW offered a good array of luxury options, competing well with Mercedes and Audi. Price-wise, the 5-Series was positioned competitively, often offering more sportiness for a similar price. Considering similar alternatives from the era, the Mercedes-Benz W124 E-Class is a strong contender for its bulletproof reliability and build quality, though it sacrifices some of the BMW's sportiness. For a more budget-friendly option with excellent reliability, a well-maintained Lexus ES 300 (based on the Toyota Camry platform) could be considered, though it lacks the premium feel and performance. If all-wheel-drive capability is a priority, an Audi 200 Quattro would be a compelling choice.
Final Verdict: Is the 1989 BMW 5-Series a Good Sedan?
The 1989 BMW 5-Series is ideal for driving enthusiasts who appreciate classic European engineering, sporty handling, and a timeless design. It's worth buying for those seeking a rewarding driving experience at a relatively accessible price point for a modern classic. It is best purchased used, with a strong preference for well-maintained examples. Specific trims like the 525i or 535i offer a great balance of performance and luxury. Buyers should be prepared for potential maintenance costs and prioritize vehicles with comprehensive service records. The M5 is a collector's item, significantly more expensive but offering peak performance.
Simon A
Simon is a contributor to VinCheck, where he provides articles and reviews on various automotive topics. His work focuses on delivering accurate and up-to-date information about used cars, helping readers make informed decisions.