Here’s a two-fer post for BMW fans. Last week I tackled the replacement of camshaft position sensors, exhaust side on my E39 M5. I also attended a webinar organized by the CCA M-Chapter and Hagerty, looking at the data behind rising BMW M car valuations.
My two M cars have been pretty trouble-free of late. But recently the check engine light popped on in my 2002 M5. I hooked up my very basic OBD-II reader and got back error code P0365. A search revealed that translated to an M5 camshaft position sensor B, bank 1 error. A bit more sleuthing found that sensor B was the exhaust sensor, and bank 1 was the left passenger side. E39 M5s have two banks and four camshaft positions sensors, two intake side and two exhaust side.
This DIY did not look easy. There seemed to be very little room to operate, and differing opinions on whether to attack from above or below. At least the exhaust side sensors looked easier to access than the intake. The sensors also aren’t cheap, so this error code was the catalyst for me to finally purchase a code reader that understood BMW codes, not just generic P codes.
I wanted to be sure of the problem before purchasing parts. I bought the Foxwell NT510 scanner and confirmed the diagnosis. Only one sensor was throwing a fault but all four were all original and over 20 years old. I knew it was unlikely I could replace all four during the DIY event so I decided to replace the two exhaust side.
The club DIY was hosted by Passport BMW in Marlow Heights, MD. I can’t say enough about how well we amateur enthusiasts were treated by the Passport staff. I could never have handled the sensor replacement without the guidance of Joe Bonilla, who I later found out oversees service operations for all Passport dealerships. I met him as a fellow enthusiast working on his own car.
Joe lent me a tiny, swivel head rachet required for this job. Putting the car on a lift and reaching up from below gave us the best angle. Even then you do the job mostly by feel, since your hand blocks you from seeing what you’re doing. The bolt is long and the space limited, so the rachet can’t swing much and it takes a while to remove and replace. But it got done and so far the check engine light hasn’t returned.
Looking up from under car, old sensor removed
Old sensors
While under the car I added a little bit of bling. I’ve mentioned earlier how BMW enthusiasm has spawned many a cottage industry. Some of this is driven by the ridiculous prices BMW charges for simple parts. On the E39 M5 there is a small trap door that covers the oil drain plug – a square piece of plastic. A few years ago it was $35, today it’s $90.
A guy named Derek in the Facebook E39 M5 group designs replacements for far less. I did an oil change and replaced my old one with his design. I also had to jerry-rig a replacement for the rubber mounts on the oil filter housing, which had disintegrated over time. Passport tech Mark was hugely helpful in coming up with a repair that feels more secure than the original.
In blue of course
Secured housing
It’s satisfying to keep my M cars in good repair, especially since they are steadily becoming more valuable. That was the topic of the webinar organized by Paul Seto, president of the National Capital Chapter (NCC) of the BMW CCA. Paul is a committed enthusiast who also heads up the M Car chapter for the CCA.
Paul was joined by James Hewitt, an analyst with Hagerty. Hagerty is a leading insurance company for enthusiast owners, and offers agreed to value policies. I have both my cars covered in this way. Hagerty is also a leading authority on the value of enthusiast car, including BMW M cars. It’s obvious the valuations are going up but it was interesting to see their data behind the numbers.
For example, the E30 M3 (1988-1991) is now selling for above its MSRP adjusted for inflation. Hagerty data shows a #2 condition car, described as excellent with no flaws and a local show winner, selling for almost $140,000:
My E46 model “only” approaching $60K
My E39 M5 isn’t too far behind, with a #2 car going for around $72,000 according to Hagerty. I’m not planning on selling, and I’d put the condition of my cars somewhere between a 2 and a 3 on Hagerty’s scale. But no one is building RWD, naturally aspirated, manual transmission sports cars any more, and they never will. It’s a pleasant and counterintuitive feeling driving an old car that keeps rising in value.
The rise in online auctions is a factor in the rising values. One of the most eye-opening stats Hewitt shared was the premium sellers received for their M cars on Bring a Trailer, the preeminent online auction site purchased in 2020 by Hearst Automotive. According to Hagerty BaT delivered a 24 percent premium compared to other venues:
Here’s a recording of the webinar if you’d like to listen for yourself.
If you’re looking for a new hobby, jump in now before the entry fee gets too prohibitive. You’ll enjoy the ownership experience – and maybe down the road own an asset that figures into your retirement plan.