# 1996-2001 BMW 725tds The BMW 725tds was a diesel-powered variant of the E38 7 Series, BMW's flagship luxury sedan from this era. Powered by a 2.5-liter turbocharged inline-six diesel producing 143 horsepower, it offered respectable fuel economy for a large luxury car while maintaining the 7 Series' refined ride and premium appointments. Reviewers praised its elegant styling, solid build quality, and surprising efficiency, though noted the engine felt underpowered for a car of this size and prestige. The 725tds is somewhat infamous for complex, expensive-to-repair systems as it ages. Today, it appeals to budget-conscious buyers seeking affordable luxury sedan motoring, particularly in Europe where diesel fuel is economical. Best suited for those mechanically inclined or with access to specialist BMW mechanics, and willing to address the inevitable electrical gremlins and wear items that plague aging luxury cars.
The BMW 725tds features a reliable M51 diesel engine but faces expensive maintenance typical of luxury BMWs: complex electronics prone to failure, costly specialist servicing, and pricey OEM parts. Diesel particulate filter issues and injection system repairs are common. Insurance runs higher due to luxury classification. Parts availability diminishing as model ages, increasing costs.
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