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1998 BMW 540i Dinan


Tavarish’s recent Jalopnik post regarding the performance bargain available in the E39 540i solidified many of my car-brain’s transient thoughts. The 540i is a serious looker, with the E39’s grace and nearly all of the M5’s aggression. They are plentiful around the interwebs, but this example caught my eye with a host of Dinan upgrades, low mileage, and a 6-speed transmission. The Dinan supercharger pushes power slightly above the S62’s with plenty of drivetrain and chassis modifications to keep up. It may not quite trigger that special ///M response, but it will get you 99% of the way there while costing half of what a similar M5 would. At just over $10k, you’ll be hard pressed to find more performance per dollar, let alone in a car that looks this good.

Click for details: 1998 BMW 540i Dinan on Craigslist SF Bay Area


Year: 1998
Model: 540i
Engine: 4.4 liter supercharged V8
Transmission: 6-speed manual
Mileage: 105,000 mi
Price: $10,499


1998 Dinan Supercharged BMW 540i

Year: 1998
Color: Canyon Red Metallic with Sand (Beige) Leather interior
Transmission: 6-speed manual (the only way to drive a BMW!
Mileage: ~105,000 miles – under 7K miles/year

If you are looking for the fastest (pre-M5) E39 driving machine, read on. Dinan upgrades include Supercharger kit, which provides stump-pulling torque at 412 lb·ft and over 415 hp. The stock 4.4L V8 engine produced 282hp. The stock suspension has been replaced with the Dinan Stage 3 kit, which eliminates any body roll along with the strut tower brace. The brakes are Brembo cross-drilled and slotted and have stainless steel lines. The Dinan free-flow exhaust, clutch & lightened flywheel are also on the car. A Quaife torque-biased differential with 3.15 gearing has replaced the factory 2.81 open differential. This makes a big difference in acceleration and cornering.

All amber lighting has been replaced with smoked lenses. The front bumper has been replaced with an M5 front air dam, which also has 3M clear protection on it. Rear M5 trunk spoiler is present plus AC Schnitzer roof spoiler and aluminum pedal set. All Dinan modifications were performed by Motor Works West in North Jersey, an authorized Dinan Service facility. The car has been serviced with the best of lubricants – Mobil 1 and/or Redline. Receipts are available since year 2000 or 21,661 miles. I (3rd owner) have owned the car since February 2004. The second owner purchased the car in October 2000.

Full list of modifications are in the last photo!

Recent Maintenance & Repairs
Replaced windshield rubber seal
Replaced AC compressor
Replaced Radiator which cracked (common issue on BMWs as the tanks are aluminum but the connectors are plastic)
Replaced 2 ignition coils
Replaced valve cover gaskets
Replaced ASC cable
Replaced AC pump
Replaced power steering hose

Like any car that’s over 10 years old, there are a few quirks. Needs a new knock sensor (about a $100 repair).
Dashboard missing a few pixels (famous issue with all E39 models and I believe this can be partially covered by BMW or a pixel repair kit can be obtained…I just never bothered). Transmission needs to be warmed up to loosen the notchy shifting. CD Changer doesn’t work (broken plug…replaceable) but I have never played CDs in this car. Recommend you get a bluetooth RF transmitter or upgrade to a different/modern head unit. One HID headlight does not ignite (never had time to troubleshoot if it’s a bulb or ballast issue). Some scuffs and marks on the body


The issues seem no greater than I would expect from any turn-of-the-millenium BMW, and the pros far outweigh the cons. Dinan’s headquarters are not far from the seller should you have any questions. Whether you feel like having a beastly highway cruiser or want to hoon a big Bimmer a little bit, this is a classy, modified sedan that can satisfy nearly all desires.



  1. MDriver
    MDriver November 23, 2014

    I know MMW very well…they did a friends S3 conversion on his E39 M5…
    so the car switched for the west coast….
    you do get quite a bit of bang for the buck with this 540….
    assuming that a really good PPI bears this car out it will be well bought at that number..
    the M-Parallels just make it stand out

  2. Vic
    Vic November 24, 2014

    HID headlight repair is either an inexpensive $38 Zenon replacement from DDM or an $800 igniter/ballast replacement like the one I had to do last month form my E46 M3. Buyer beware unless you don’t mind driving around with one headlight.

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