We've had 2 E38s in our family- a 740i, and later a 740iL. Let me tell you, they are among the best driving cars on the planet. Silky smooth ride, every power/convenience feature you an think of, very powerful (the '96+ with the 4.4 more so than the '95, which was lacking in low end torque. Our 740i was a '95, which we got rid of due to the Nikasil issue), responsive handling (handled amazingly well for their size), incredible stability at high speed, excellent brakes, lots of safety features, solid structure and build quality, great looking, I could go on and on....

However, those cars are very costly to maintain. I would not even think of one without an extended warranty. The V8 has some cooling system issues, and the electronic gadgets are suspect to failure over time. Also annoying was the pixels constantly burning out on the interior displays. The car, due to its weight, went through brake pads like they were going out of style.

Overall, the E38 is in a class of its own, and I think it is easily a better car than the W140 (bring on the flames!), but the cost to maintain that car was just too much in the long run. I guess if money were not an object, we would still have those cars, but due to maintenance costs we ended up getting a W210 E430, which has been fairly bulletproof, with far lower operating costs. Still, the W210, as nice as it is, does not compare with the E38; The E38 (excluding upkeep) is a far superior car.

I would say that maintenance-wise, aside from the headgasket issues on the '97 E320, and the possibility of some tranny problems (being the first year of the 722.6), overall maintenance will be cheaper. I also think a 5-series would be a little cheaper to maintain than a 7, particularly the 528i, which has a less complicated interior trip computer/digital display setup than the 540 (far fewer pixels to burn out), and a more reliable engine/cooling system.

The W124 is a solid, reliable car with few issues, and the styling still looks fantastic even today. However, the newer BMWs have surpassed that platform in regard to ride and handling, and the W210 E320 is a much more modern car, and should be fairly reliable also. As for the LS400, we have also had Lexuses in our family and their operating costs have been substantially lower than the German cars, but at the same time the Germans are simply more fun. I think the 2nd and 3rd generation GS, the original SC and the IS cars are the only really exciting Lexuses made. However, if you want something reliable, Lexus should be up ther eon your list. The V8 engine is super-smooth, and the ride is excellent. The LS even handles surprisingly well, given its plush ride.

Also, if you don't mind a large coupe, you should look into the Lexus SC300 and SC400. You should be able to pick up '92'096 models is your price bracket. They are solid cars, and very reliable. The 300 has the same inline 6 as the non-turbo Supra, so there is plenty of power to be made there is you go to the aftermarket. The SC400 is more of a cruiser, with effortless power, and more standard equipment. Most SC400s came with the optional Nakamichi sound system, which is one of the best systems ever installed in any car, regardless of price. Even the standard Pioneer system is impressive, and far better than anything MB has put out. These cars are comfortable, reliable, and handle well (the 300 more than the 400, due to its lighter weight and better balance). Plus, I think their bodystyle is beautiful and original, which can't be said about many Japanese cars.


In any event, good luck with your search.

-Nabeel