Why the 2025 BMW M5 Plug-In Hybrid Is the Most Affordable M5 Yet

Many dream of traveling back in time to buy classic cars that are now valued at a fortune before their prices soared. However, were those vehicles as budget-friendly as they appear in hindsight? While investigating a different story regarding the BMW M5, we discovered that the forthcoming 2025 model may actually be quite a deal, with a starting price of $119,500.

While we wouldn’t go as far as to call a six-figure performance sedan affordable—especially when the average new car price in the US is $48,401 according to Cox Automotive—it’s remarkable to note that you could buy almost two and a half standard new cars in America for the same price as a single M5. But how does this pricing compare when looking back through history? The 2025 M5 may hold the title of the priciest model in today’s currency, but do its forebears appear less expensive when adjusted for inflation?

1988 E28 M5: $48,470

In 1987, the M5 arrived in the US and transformed perceptions of performance sedans. Under the hood was an inline-six engine generating 256 horsepower—nine more than the Chevrolet Corvette at the time—but it came at a higher price, with BMW asking $48,470 for the M5 in 1987. That amount translates to roughly $132,112 today, based on the Bureau of Labor Statistics Inflation Calculator.

The median personal income in 1987 was $12,100 (as reported by the US Census Bureau), meaning that an average individual would need around four times the median salary to afford an M5. This comparison shows that despite rising prices, BMW’s pricing strategy has stayed fairly consistent, making the M5 more accessible relative to income over time, even though the MSRP has increased.

1991 E34 M5: $56,600

The American market had to wait until the 1991 model year to experience the M5’s successor, which had been available in Europe for several years. This iteration boasted an upgraded inline-six engine producing 310 horsepower, resulting in a price tag of $56,600 in 1990. Adjusted for inflation, this equates to $136,525 today, making the E34 M5 the priciest version when factoring in inflation.

With the median income in 1990 being $14,380, the E34 M5 was slightly more affordable than its predecessor, requiring only 3.94 times the median salary. This observation marks the beginning of a trend where the M5 becomes increasingly more affordable compared to income.

2000 E39 M5: $69,400

At the turn of the millennium, BMW unveiled the new M5, the first edition powered by a V8 engine delivering 394 horsepower, an increase of 84 horsepower over the E34. Remarkably, despite the significant boost in power, the E39 was relatively more affordable, debuting at $69,400, which adjusts to $129,703 in today’s dollars. This marks the second occasion in the M5’s lineage where the car was more affordable from one generation to the next. With an average income of $20,580, it would require 3.37 years’ worth of income to purchase the E39 when it was new.

2006 E60 M5: $81,200

The E60 M5 introduced an exhilarating V10 with 500 horsepower, which was a 106 horsepower increase over the E39. This launch coincided with a peak in gasoline prices in the US at that time. As gas prices soared, the viability of a V10 sedan came into question, but BMW marketed the E60 at $81,200 in 2006. Adjusted, that amounts to $129,779 today, only slightly more than the cost of the prior E39 M5.

Although the adjusted price remained relatively stable, median income had risen to $25,800 by 2005. Therefore, the E60 M5 required 3.15 times the median income to afford.

2013 F10 M5: $91,200

The F10 M5 came equipped with a twin-turbocharged V8 generating 553 horsepower. Although BMW decreased the engine size, the price increased to $91,200 at launch in 2013. In inflation-adjusted dollars, this figure comes to $124,938, making it relatively more affordable at that time. Unfortunately, during this period, wage growth stagnated, with median personal income only reaching $26,990. Consequently, the F10 required 3.38 times the median income to acquire, indicating a relative increase in cost compared to earlier models.

2018 F90 M5: $103,595

The F90 M5 featured a similar engine to the F10, now producing 591 horsepower and equipped with xDrive all-wheel drive. The vehicle’s price increased significantly to $103,595. This cements the F90 as one of the costliest M5 generations to date, with an inflation-adjusted price of $132,176, surpassed only by the E34. Despite this rise in price, the F90 continued the trend of relative affordability, costing 3.07 times the average worker’s salary, given a median income of $33,710.

2025 G90 M5: $119,500

In absolute current dollars, the 2025 G90 M5 stands out as the most expensive model yet, with a starting price of $119,500. However, when comparing it to earlier M5 models adjusted for inflation, it emerges as the most affordable version to date. The G90 also boasts the highest power rating, featuring a new plug-in hybrid system alongside its twin-turbo V8, delivering a combined output of 717 horsepower. Interestingly, despite this increase in power, the G90 has gained substantial weight—1,020 pounds more than the F90. This results in the G90 having a lower power-to-weight ratio than its predecessor for the first time.

“Technological advancements over the last 30 years have been remarkable, enhancing quality and performance while decreasing prices for a wide range of consumer goods, from computers to cars. Technology is improving our lives in terms of cost, quality, and speed.” – Dr. Raymond Robertson, Director of the Mosbacher Institute for Trade, Economics, and Public Policy and Professor.

Data on median income extends until 2022, when it was $40,480. By analyzing available personal weekly income data, we can project that after-tax income may have reached as high as $45,000 in 2024. If our forecasts are accurate, the G90 costs only 2.66 times the median income, confirming it as the most economical M5 ever when adjusted for inflation. While one may criticize the M5 for its increased weight or hybrid nature, its pricing remains commendable.