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1996 BMW 7-Series Overview, Reviews, Ratings & Specs

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Cathleen V | December 19, 2025
The 1996 BMW 7-Series, part of the E38 generation (1994-2001), is a full-size luxury sedan embodying German engineering and refined comfort. Available primarily as a sedan, key trims included the 740i and the more powerful 750iL. While new pricing was substantial, current used prices reflect its age. It stands out for its sophisticated design, advanced technology for its era, and a driving experience that blended potent performance with opulent luxury, making it a status symbol and a desirable executive car.
The Good

The 1996 7-Series offers a potent blend of exhilarating performance from its V8 and V12 engines, alongside a supremely comfortable and quiet cabin. Its timeless design still garners admiration, while its robust build speaks to practicality. For emotional buyers, it's the prestige and driving dynamics; for practical ones, it's the enduring build quality and luxury refinement.

The Bad

Common weaknesses for the 1996 7-Series include potential electrical gremlins, particularly with the complex onboard computer systems and wiring harnesses. Cooling system issues, such as radiator leaks and head gasket failures, are also frequent concerns. Expect aging suspension components and potential transmission troubles on higher-mileage examples.

1996 BMW 7-Series: Quick Overview

  • Engine Options:
    • 4.0L M60B40 V8
    • 5.4L M73B54 V12
  • Horsepower:
    • 4.0L V8: Approximately 282 hp
    • 5.4L V12: Approximately 322 hp
  • Fuel Economy (EPA Estimates - Varies):
    • 4.0L V8: Around 15 mpg city / 21 mpg highway
    • 5.4L V12: Around 12 mpg city / 18 mpg highway
  • 0-60 Times (Approximate):
    • 4.0L V8: Around 6.5 - 7.0 seconds
    • 5.4L V12: Around 6.0 - 6.5 seconds
  • Towing Capacity: Not applicable, as this is a luxury sedan designed for passenger transport, not towing.
  • Key Trim-Level Features (740i & 750iL):
      • Standard leather upholstery
      • Power-adjustable front seats with memory
      • Dual-zone automatic climate control
      • Power windows, locks, and mirrors
      • Premium sound system
      • Sunroof
      • Cruise control
      • Optional features often included: Navigation system, heated seats, power rear sunshade, premium wood trim, HID headlights (late models).
      • The 750iL, being the long-wheelbase version, offered even more rear legroom and often came with additional luxury appointments.

1996 BMW 7-Series Specifications

No records to be displayed

Vehicle History Report

What Problems Does the 1996 BMW 7-Series Have?

The 1996 BMW 7-Series (E38) is a complex luxury vehicle, and as such, it is prone to specific issues, especially as it ages. One of the most frequently reported problems revolves around the vehicle's intricate electrical system. Issues with the Engine Control Unit (ECU), ABS module, instrument cluster, and the complex wiring harnesses can lead to a myriad of warning lights and malfunctions. Water ingress into the engine bay or cabin can also wreak havoc on electronics. Cooling system failures are another common concern; expect to potentially deal with radiator leaks, cracked coolant hoses, and failing water pumps. Head gasket failures can also occur, particularly on the V8 engines if overheated. Transmission problems, especially with the automatic transmissions, can manifest as harsh shifting or complete failure on higher-mileage cars. The ABS/ASC (Automatic Stability Control) system is also a known weak point, often due to wheel speed sensor failures or issues with the ABS module itself. Suspension components, such as bushings and ball joints, will likely require replacement due to wear and tear. While BMW did issue recalls for various components throughout the E38's production run, specific recalls for the 1996 model year should be verified through official channels. Long-term reliability is highly dependent on diligent maintenance and addressing issues promptly. Cars that have been poorly maintained will likely present a cascade of expensive repairs. There aren't drastic year-over-year changes in reliability that stand out for 1996 specifically within the E38 generation, but rather a consistent set of potential issues that owners should be aware of.

How long will the 1996 BMW 7-Series last?

With consistent and thorough maintenance, a 1996 BMW 7-Series can reasonably achieve 200,000 to 250,000 miles, and in some cases, even more. These cars were built with durable powertrains, especially the V12, which can be exceptionally long-lived with proper care. However, their longevity is significantly impacted by the owner's commitment to preventative maintenance. Weaknesses emerge over time, primarily in the form of aging electrical components, cooling system parts, and suspension bushings. Neglecting regular fluid changes and inspections will accelerate wear and lead to costly repairs. The body is generally rust-resistant, but check common areas like wheel arches and door bottoms on cars from rust-prone climates. The long-term durability is there, but it demands a proactive approach to upkeep.

What Technology & Safety Features are Included?

The 1996 BMW 7-Series was a technological showcase for its era, pushing boundaries in automotive innovation. Standard tech included power amenities like windows, mirrors, and seats with memory functions, dual-zone automatic climate control, and a sophisticated onboard computer system offering diagnostics and trip information. The entertainment system typically featured a premium audio system with multiple speakers, often paired with a cassette player and an optional CD player. A significant optional feature was the integrated navigation system, which was quite advanced for the mid-90s, often utilizing a trunk-mounted CD-ROM drive. Driver-assistance features were nascent but included traction control (ASC+T on some models) and cruise control. Safety was paramount, with standard dual front airbags, side-impact protection, and anti-lock brakes (ABS). The E38 generation was known for its robust chassis construction. While official crash-test ratings from organizations like the NHTSA or IIHS for this specific 1996 model year might not be readily available in modern formats, the E38 7-Series generally performed well in contemporary safety assessments for its class, benefiting from its substantial construction and advanced safety systems for the time. Optional features also extended to things like heated seats, a power rear sunshade, and automatic headlight leveling, further enhancing the luxury and convenience experience.

What Colors Options are Available?

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1996 BMW 7-Series Prices and Market Value

When new, the 1996 BMW 7-Series was a significant investment, with the 740i typically starting in the $65,000-$70,000 range and the 750iL commanding upwards of $90,000. As with most luxury vehicles, depreciation was steep in the initial years. Currently, used market prices for the 1996 7-Series are highly variable, ranging from as low as $2,000-$3,000 for project cars needing extensive work, to $8,000-$15,000 or more for exceptionally well-maintained examples with lower mileage. Factors affecting resale value include maintenance history, overall condition, mileage, and the desirability of specific trims (V12 models often command a premium). Cars with comprehensive service records and in pristine condition will always fetch the highest prices, appealing to enthusiasts.

1996 BMW 7-Series Cost of Ownership

Owning a 1996 BMW 7-Series is generally considered costly. Insurance premiums can be higher due to its luxury status and potential repair costs. Fuel economy, especially for the V12, is poor, with V8 models offering only moderate improvement. Maintenance and repairs are where costs significantly escalate. Parts are often expensive, and labor rates at BMW specialists or dealerships are high. Common repairs for electrical, cooling, and transmission issues can easily run into thousands of dollars. This is not an economical vehicle to own; it is a luxury flagship that requires a significant budget for upkeep and repairs, especially when purchasing a used example.

1996 BMW 7-Series Fuel Efficiency

No records to be displayed

1996 BMW 7-Series Insurance

Insurance for a 1996 BMW 7-Series is moderately priced, reflecting its status as a Vehicle with strong safety ratings and
reasonable repair costs.

How Does the 1996 BMW 7-Series Compare to Other Vehicle?

In 1996, the BMW 7-Series (E38) competed fiercely with the Mercedes-Benz S-Class (W140), Lexus LS 400, and Audi A8. Performance-wise, the 7-Series V8 and V12 offered potent acceleration and refined handling, often considered more engaging than the S-Class, which prioritized ultimate comfort. The LS 400 was renowned for its silky-smooth ride and legendary reliability, though perhaps less sporting than the BMW. The Audi A8, with its standard quattro all-wheel drive and aluminum construction, offered a different approach to luxury performance. Feature-wise, all offered advanced luxury amenities for their time, with BMW often pushing the envelope with technology like its early navigation systems. Reliability is where the Lexus LS 400 typically shines, consistently outperforming its German rivals in long-term owner surveys. The E38 7-Series, while robustly built, is known for more complex and costly electrical and cooling system issues. Price-wise, they were all in a similar premium bracket when new. Today, used prices vary wildly based on condition, but the Lexus LS 400 often represents a more reliable and potentially cheaper long-term ownership proposition. If performance and driving engagement are paramount and you're willing to accept higher potential maintenance costs, the 1996 7-Series remains a compelling choice. However, for a more dependable luxury experience at a similar or lower used price point, the Lexus LS 400 is a strong alternative. The Mercedes S-Class offers a different flavor of opulence, and the Audi A8 provides all-wheel-drive security.

Final Verdict: Is the 1996 BMW 7-Series a Good Vehicle?

The 1996 BMW 7-Series is ideal for automotive enthusiasts who appreciate classic German luxury, sophisticated design, and engaging driving dynamics, and who possess a healthy budget for maintenance and repairs. It is generally not recommended for the average buyer seeking trouble-free transportation due to its age and complex systems. If you're considering a purchase, it's almost exclusively a used buy. Buying one requires meticulous inspection by a BMW specialist. Look for well-documented maintenance histories, ideally favoring the V8 (740i) for slightly simpler and cheaper repairs than the V12 (750iL), though the V12 offers ultimate refinement. It can be worth buying if you find a pristine example, understand the potential costs, and value the unique ownership experience it offers over its Japanese or American luxury contemporaries.

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Cathleen V

Cathleen is an exceptional freelance writer covering hot topics in the automotive world from a gearhead's perspective. Her articles delve into various aspects of automotive technology and history, offering readers detailed insights into engine performance, reliability, and maintenance. Through her engaging and informative writing, Cathleen provides valuable information to automotive enthusiasts and consumers alike, helping them make informed decisions about vehicle maintenance and purchases.