It’s been over 40 years since BMW launched the first M5, which was based on the E28 5 Series sedan. Very few of these original M5s were sold in the United States, making clean examples desirable and highly valued. That much was proven recently when a 1988 M5 with only 9,800 miles sold for a stunning $195,810 on Hagerty Marketplace. According to the publication, that’s a new record price for the sports sedan, and far exceeds the price of a brand-new G90 M5. So, what makes this particular E28 so special?
Once The Fastest Sedan In The World
1988 BMW M5 Hagerty
When launched, the M5 could reach a top speed of 245 km/h or 152 mph, making it the fastest sedan in the world. It was one of the original super sedans, combining unprecedented performance with high-end luxury. All the classic BMW M ingredients were in place: a 3.5-liter straight-six engine, a five-speed manual, and rear-wheel drive. With 282 horsepower and 251 lb-ft of torque, it was capable of accelerating from 0 to 100 km/h (0-62 mph) in 6.5 seconds. The M88/3 inline-six differed only slightly from the one used in the mid-engined M1.
This 1988 example has covered under 10,000 miles since new and is finished in black with a Natur leather interior. Originally delivered to Niello BMW of Sacramento, it spent later years in Arizona and Ohio. The near-flawless interior features the classic angled BMW center console, and is equipped with air conditioning, power windows, and power seats.
1988 BMW M5 Hagerty
“This 1988 BMW M5 was sourced directly from the Enthusiast Auto Group private collection,” said the selling dealer. “It is a single‑owner, all‑original, bone‑stock example showing just over 9,000 miles. This car represents the absolute pinnacle of E28 M5 preservation and has long been rumored to be the lowest‑mile, best‑preserved M5 of its kind anywhere. A true three‑pedal legend and a crown jewel for any BMW Motorsport enthusiast.”
Extensive Maintenance and Refurbishment History
Hagerty
According to the listing, this M5 was previously part of the Enthusiast Auto Group private collection, where $50,000 was spent on it. In March 2020, the following work was done:
- Belts replaced
- Valve adjustment
- Driveshaft flex disc replaced
- New water pump
- New front strut inserts and rear shocks
- Brake calipers and related components replaced
- Wheels replaced
A further $41,000 was spent in refurbishment work by Canepa in 2025. Here, both the interior and exterior underwent refurbishment and sheet metal in the battery area in the trunk was repaired. Various fluids, the heater valve, and exhaust components were also replaced or repaired at this time.
All told, this M5 is ready to be enjoyed—whether standing in a climate-controlled garage or on the road.
What It Means
Hagerty
The all-new BMW M5 couldn’t be more different from the original E28. It’s now a turbocharged V8 plug-in hybrid, sends power to all wheels, and only comes in automatic. It’s a world apart in technology, speed, and luxury, but long gone is the simplicity of the original.
As cars become ever more complex and more software-reliant, analog machines like the E28 M5 are gaining appreciation from enthusiasts. A pure driving experience as offered by the first M5 is near-impossible to find in a new sports sedan, and it represents the beginnings of the successful M division. Add in the fact that only 1,340 units made it to North America, and it becomes easier to understand why this M5 nearly hit $200,000.
