Acquiring a Classic: Finding the Right 2001 BMW E38 740i

The Pandemic Purchase

I picked up my 2001 E38 740i during the pandemic from a fellow enthusiast. At the time, I had no idea what I was getting into, or how much I'd come to love this car.

The E38 generation 7 Series holds a special place in BMW history. It's the last of the elegant, understated luxury sedans before the Bangle era changed everything. The "Shorty," the standard wheelbase version, displays better proportions and offers slightly sharper handling than the long wheelbase. It looks right in ways stretched cars rarely do.

What I didn't fully appreciate was the difference between buying a car and committing to one. Modern BMWs depreciate and you move on. A classic BMW either consumes you or gets neglected. There's no middle ground.

What I Actually Bought

The car looked decent in photos. In person, not so much. It was an immediate  reality check...

Problems discovered:

• Blown speakers throughout the car with the rear deck speakers completely disintegrated.

• Worn suspension needing complete replacement.

• Front leather seats showing their age badly.

• Droopy headliner, aclassic E38 problem.

• M Parallel wheels rashed and tired.

• Worn out brakes that lost their stopping power.

• Cosmetic issues everywhere: dulled trim, worn roundels, dents.

• Paint damage on both bumpers.

• Mirrors faded and mismatched to body color.

• Valve covers with typical wear.

• Instrument cluster pixelation, another E38 signature issue.

• Windshield and rear window needing replacement.

None of this was surprising for a 24-year-old car. What mattered was whether I'd commit to fixing it properly or just drive it into the ground. The previous owner cared about the car. That foundation meant something.

Why the E38 Matters

The E38 represented BMW's flagship philosophy before the brand started chasing volume. It's luxurious without being ostentatious. The M62 V8 provides adequate power while remaining smooth enough for grand touring. The chassis balances comfort and control better than anything BMW builds today.

More importantly, the E38 is the last 7 Series that looks like a proper BMW. The kidney grilles are correctly proportioned. The greenhouse is elegant. The car commands respect without demanding attention.

These cars are getting harder to find in decent condition. Most have been neglected, abused, or parted out. The ones that survived need work. Clean, well-sorted examples don't come up often, and when they do, they're not cheap.

The Mental Shift Required

Buying a classic BMW requires a different mindset than ordering a new M car. With a new build, you can spec exactly what you want and it arrives ready to drive. Maybe you add modifications, but the foundation is perfect.

With a 24-year-old car, the foundation needs work before anything else. Every system requires careful evaluation. Parts that look fine might be one hard corner from failure. The car reveals its needs gradually, usually at inconvenient times.

Financial considerations are different too. A "cheap" E38 purchase price means nothing. What really matters is the total investment over time: parts, labor, sourcing rare components, dealing with problems that cascade into other problems. All of it adds up. Anyone who thinks they're saving money buying an old 7 Series instead of a new 3 Series hasn't done the math.

But that math is besides  the point. The E38 offers something new cars can't provide: character developed over decades and a driving experience BMW no longer produces.

Sourcing Strategy

Restoring a car this age requires multiple supply channels. No single source has everything you need.

BMW Dealers: Some parts remain available through official channels. OEM quality, proper fitment, but often expensive. Items like interior trim pieces, seals, and fasteners are worth buying new when available. Many parts are now discontinued (NLA), so buy what you can while it exists.

Dismantlers: Essential for parts no longer in production. Quality varies wildly. Build relationships with yards that specialize in BMW. They'll alert you when good donor cars come in.

Fellow Enthusiasts: The E38 community knows where to find rare parts. Forums, Facebook groups, and local meets connect you with people who've already solved the problems you're facing. Someone always has the part you need sitting in their garage.

Aftermarket Suppliers: Companies like Meyle, Lemforder, and Turner Motorsport produce replacement parts that meet or exceed OEM quality. Often these are the better choice for wear items that BMW designed with planned obsolescence.

The key is patience. Rush the process and you'll overpay for marginal parts or settle for wrong-color interior pieces. Take time to find the right components and take pride as the build comes together properly.

The OEM-Plus Philosophy

My approach to this car follows a simple principle: if there's a better option, go with it.

OEM-plus means respecting the car's original character while improving on BMW's compromises. Period-correct modifications that could have existed in 2001. Modern improvements that integrate invisibly. No stance-bro wheel fitment or boy-racer aesthetics.

The goal isn't building a show car or a restomod. It's creating the E38 that BMW would have built if cost accountants hadn't interfered. Better brakes because the factory setup was marginal. Improved suspension because the original bushings failed. Quality audio because the stock system was never good.

Every modification decision filters through this lens: Does it make the car better while respecting what it is? If yes, proceed. If no, reconsider.

What Most People Get Wrong

Most people approach classic BMWs as a cheap transportation option. They buy on price alone, defer maintenance, and wonder why the car becomes unreliable.

Others go the opposite direction, over-modifying cars into something unrecognizable. Aggressive body kits, slammed suspension, and cheap wheels turn elegant sedans into caricatures.

The E38 deserves better than either approach. These cars reward investment with driving experiences that modern vehicles can't replicate. They punish neglect with expensive failures.

Finding the right car is one thing but it's  committing to it that makes all the difference. A rougher example restored correctly beats a cleaner car that gets neglected.

Making Classic Ownership Work

The 2001 740i taught me something I didn't expect: older cars demand more attention but return more satisfaction.

Every sorted problem builds your connection to the vehicle. Every improvement reveals what the car can become. The relationship develops through effort in ways that writing a check for a new car never provides.

This isn't for everyone. If you want reliable transportation without involvement, buy something new with a warranty. If you want a project that rewards patience, the E38 delivers.

I'm still working through the list of improvements. The car gets better with each phase. That ongoing process, the journey of bringing it up to standard, has become the point.

This pandemic purchase turned into something more. It turned into a commitment to preserve a piece of BMW history in the way it deserves.