There must’ve been something in the air in Germany in the noughties. Mercedes-Benz started putting huge V8s in its cars, Audi was making use of its Lamborghini acquisition to create twin-turbo V10 wagons, but most surprisingly of all, BMW stuck a naturally aspirated V10 in a family sedan. It wasn’t just any V10 either – it had Formula One roots and could be paired with a manual transmission.
The combination of a naturally aspirated V10 and a manual transmission in a sedan is the stuff of dreams, but until recently, the market hadn’t reflected just how special the E60-generation BMW M5 truly was. Values are starting to pick up though, so if you want some old-school sports sedan fun (and have deep enough pockets to maintain a V10 engine), it might be your last chance to get one for a reasonable price.
The E60 BMW M5 Comes From A Different Era
It almost feels like German car manufacturers knew the end was coming, so they got all of their greatest work out of the way quickly. BMW had entered Formula One with Sauber in 2006 and wanted to bring some of that technology to the road, so it believed the best way to do that was to use the same engine configuration as open-wheel racing. What resulted was the S85 5.0L V10 engine, which was unlike anything else the company had made.
The BMW M5 of the E39 generation was already one of the best sedans of all time while it was on sale, so when the E60 generation came for the 2006 model year, the company knew it had to go big. The S85 engine is unlike other M engines in that it doesn’t share its design with any non-M engines, having instead been built from the ground up. It produces a healthy 500 horsepower and 384 lb-ft of torque with a redline all the way up at 8,250 rpm. All that could be chosen with a manual. Imagine that today.
There are individual throttle bodies, variable valve timing, and a dry-sump lubrication system to help it cope with high G-force cornering. If these features feel somewhat overkill, that’s because we’re not as used to this anymore. The noughties were a time when it felt like automakers had deep enough pockets to do whatever they wanted. But for all its engineering brilliance, the S85 V10 came with a hidden twist that only one market in the world ever experienced – and it’s the reason collectors are now scrambling.
America Got Something No Other Country Did
2007 BMW M5 E60 gear stickBringATrailer
The BMW M5 came with two transmission choices for the North American market, which is something no other market received. The standard choice was the sequential manual gearbox (or SMG), which felt akin to a teenager learning to drive a stick shift for the first time, owing to its jerky shifts and slow responses. It was designed as a simulated manual from the ground up (unlike the E46 M3’s gearbox, which was a converted traditional manual), so it could feel faster than rivals, but it was not perfect.
A six-speed manual was offered due to overwhelming demand from the American audience, and even if the SMG was technically quicker, it couldn’t beat the purity of three pedals. Without the launch control system of the SMG, the stick-shift E60 is 0.2 seconds slower to 60 mph at 4.7 seconds, but real-world results are often quicker. The E63-generation BMW M6, which was also available with the S85 V10, also got this manual transmission, but the M5 is the more desirable choice thanks to its lineage.
Of course, not everyone went for the manual choice, which is why there are only around 1,300 six-speed M5s compared to roughly 7,400 units of the SMG sports sedan. The high-revving nature of the V10 can sometimes make it feel like it was designed for the SMG gearbox – which is a fair assumption, given that only the US market received this choice – but the manual gives the driver an unrivaled connection to one of Munich’s most iconic engines.
The Car That Doubled In Value Because Nobody Else Can Ever Build It Again
2006-2007 BMW M5 E60 Red Rear Angled View Rain Driving on a Mountain PassBMW
This follows a familiar pattern. We’ve repeatedly seen with other cars – like the Ferrari F355 or Lamborghini Gallardo – that when a rare manual variant exists, used car prices shoot up compared to the automatic. That’s not only due to rarity, but also to how uncommon this layout has become thanks to emissions regulations. The manual-equipped BMW M5 always used to go under the radar, but recently, collectors are finally waking up to the investment potential of this sports sedan.
In 2025, the manual was worth around the $30k mark, but clean examples are now going for double that, or sometimes even $70k. A recent 32,000-mile example sold for just under $70k, thanks to its optional equipment, subdued color choice, and collector demand for clean, low-mileage examples with strong future appreciation potential. Ultra-low mileage examples can even be traded for $132k, and even if this may be the exception to the rule, it shows where the market is heading.
We’ve seen the E39-generation, which preceded the V10 model, go for higher values and even trade for over $100k sometimes, but there’s less novelty to a V8-powered car that was only offered with a manual anyway. The three-pedaled E60 M5 is more of a unique option. Many new cars are ostentatious – think the latest M5 with its substantial proportions – and conspicuous displays of wealth are becoming less fashionable. This late 2000s M5 is the perfect “if you know, you know” car.
It also helps that the 1990s and 2000s nostalgia resurgence is well underway. Those who had these M5s on posters in their rooms when they were younger now have more money to spend on cars like this. We’ve seen the Honda S2000 become more expensive, iconic rally-bred Subaru and Mitsubishi models shoot in value, and even hot hatches trade for over their original MSRP. The M5 is another part of that movement, and for daily drivers – if you’re brave enough – there isn’t a better option.
Rod Bearings, Throttle Actuators, And A $10,000+ Maintenance Bill: What The S85 Really Costs To Own
2006 BMW M5 E60 S85 NA 5.0L V10 EngineBMW
Here’s the scary part of the E60-generation M5, though. Reliability of any highly strung V10 is challenging, but with an F1-derived design, those concerns are only amplified. The big problems mainly consist of rod bearing wear, as oil clearances aren’t well-designed and the original parts aren’t durable enough to put up with the high-revving design. These parts require replacement every 60,000–80,000 miles. There’s also the cooling system, which is prone to failure.
The throttle actuators can fail and replacements are common with high mileage examples. Beyond those specific issues, the general upkeep of a V10 engine is notoriously expensive. Spark plugs, coil packs, and fuel costs are all factors to consider with this car, although opting for the manual transmission should result in less clutch wear compared to the troublesome SMG. Rather than focusing solely on low-mileage examples, we’d recommend seeking out a car with a few more miles on it but with all the major maintenance already completed.
The Current M5 Is Faster, Heavier, And Electrified – And That’s Exactly Why The E60 Is Worth More
2007 BMW M5 Touring Front View (E61)BMW2025 BMW M5 Sedan Front View PurpleBMW
Can you imagine an automaker coming out with a naturally aspirated V10 sedan in 2026? We can’t. The latest M5 still uses a V8, but it plays second fiddle to the plug-in hybrid system, which makes it friendlier for the planet but worse for the driver. Sure, it’s faster, can take corners as quickly as supercars, and offers all-electric range to lower running costs, but it doesn’t quite stir the soul. That’s why the market is starting to pick up.
The previous M5 (F90) still felt incredibly capable and stuck in the lineage of true M driver’s cars, but with this latest generation, that has subdued somewhat. We wouldn’t be surprised to see the E60 generation start to overtake the newest sedan in terms of value, as we found the latest M5 to be somewhat unremarkable after a few days behind the wheel. Looming emissions regulations mean fewer manual cars and less money for performance-oriented development, with budgets directed toward lowering CO2 figures instead.
Base Trim Engine
5L V10
Base Trim Transmission
7-speed auto-shift manual
Base Trim Drivetrain
Rear-Wheel Drive
Sources: BMW, BMWBlog, Bring A Trailer
