[Rufblackbird]

I LOVE the looks of the E38's, and would one day love to get one (most likely a '01 Sport). Had a '03 540i M Sport 6 speed and loved it until it got t-boned earlier this year and I assume the cost of upkeep is similar. If you can do the work yourself, it's not THAT bad...the cost of the watercooled alternator has come down in price, but the V8's certainly have cooling issues. The waterpump job wasn't too bad all things considered, at just over $500 in parts two years ago.

One major thing that I've noticed from researching E38's for sale is that a lot of the older ones (and some newer ones) are for sale with transmission problems. I'm not sure the reason behind it ("lifetime" ATF?) but definitely something to be wary of.