German executive sedans are niche vehicles in Australia, but the BMW 5 Series continues to be one of the best.
Edgy, angular exterior styling is what defines the current-generation G60-series executive sedan, which arrived locally roughly two years ago. Not much has changed since then, which means this is still the most diverse 5 Series family to date.
Key talking points are, of course, the all-electric i5 models and the beastly M5 performance flagship, which have stolen some of the limelight from the more traditional 5 Series cars.
The result is just one non-performance, non-electrified petrol variant – the 520i – and its more premium alternative, the all-wheel drive, diesel 540d xDrive you see on test here. It still competes with the Mercedes-Benz E-Class and Audi A6, but it’s now also battling the compelling G80 from Hyundai’s still-young Genesis luxury brand.
Does the 540d justify the BMW tax it’s lumped with, do the other Germans do it better, or should you leave Europe entirely?
How much does the BMW 5 Series cost?
Priced at $136,900 before on-roads, the 540d xDrive is the most expensive mainstream 5 Series variant currently on sale. It’s also $2000 more expensive than it was this time last year.
| Model | Price before on-road costs |
|---|---|
| 2025 BMW 520i M Sport | $116,900 |
| 2025 BMW 540d xDrive | $136,900 |
The rest of the 5 Series family includes the electric i5, which ranges in price from $155,900 to $219,900 before on-road costs. At the top is, of course, the M5, which costs $261,700 before on-roads in sedan form, and $265,700 before on-roads as a wagon.
Traditional German rivals include the Mercedes-Benz E300 at $132,000 before on-roads, as well as the Audi A6 45 TFSI S Line for $123,600 before on-roads.
You could also look to Asian brands, where you’d find rivals like the Genesis G80 3.5T Signature Sport for $127,200 before on-roads, and, at a stretch, the $200,000-odd Lexus LS500h F Sport.
To see how the BMW 5 Series stacks up against its rivals, use our comparison tool
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What is the BMW 5 Series like on the inside?
There’s no doubt the 5 Series is luxurious inside, but we can’t help but feel that its full potential hasn’t been realised.
Sure, you’re greeted by a sublime new-BMW smell when you get in, the seats and wheel feel plush, and there are some gorgeous design elements scattered about the dashboard and doors. But man, that screen is just a bit too much.
It may be curved, but it’s a bit abrasive in an otherwise sleek interior. More concerningly, it almost entirely does away with real buttons, leaving every cabin control to either be locked away inside the screen or placed in clunky haptic interfaces.
The 5 Series still feels very classy, and its build quality plays a big part in that. If it came down to a choice between this and its German counterparts on interiors alone, I’d still be grabbing the keys to the BMW without hesitation.
Once you’ve learned enough about the screen – by ‘learned’, we mean at least getting across where the climate controls are, and how to open Apple CarPlay – you’ll find yourself very comfortable behind the steering wheel. Ergonomics are spot-on, and the high central armrest makes this a real lounge-like cruiser.
Having a central control panel ahead of this armrest also means you don’t have to reach forward to manipulate some of the more mainstream functions. That said, many of the common items, like seat heating, are still locked into the ribbon at the base of the infotainment display.
There is a circular selector on the centre console as an alternative to reaching for the screen, but it’s clunky at best. Everything else here is touch-sensitive, and we’d like more tactility in general – and it seems BMW’s next-gen Neue Klasse models won’t be any more button-friendly.
There’s glossy plastic everywhere too, which is prone to smudges and scratches in high-touch areas. Arguably, the most egregious piano-black act is found on the steering wheel, where the sparse haptic buttons are all finished in glossy plastic.
And these haptic controls are just as fussy as ever. This is a shame, as these surfaces will visually age the 540d’s interior faster than they would otherwise.
Aside from that, everything feels on point, and it seems like the areas designed by humans were crafted with the intent of making a car that feels somewhat special, which works to great effect.
A highlight is the strip of artistic-looking coloured material spanning the dashboard and door cards, which actually contains customisable ambient lighting that looks a million bucks at night. Bonus points for the fancy speaker covers and pleasant colour palette all round; even the carbon inserts don’t look too out of place.
On the note of customisation, you can also select from a handful of instrument cluster layouts and adjust colours to your tastes. There are a hell of a lot of items to flick through on the infotainment system – almost an overwhelming amount – so combined with the steering wheel controls it’ll take a while to understand everything fully.
The leather-clad wheel is nice to hold, and the seats are comfortable with loads of adjustment. But as flashy as it looks, the optional off-white upholstery was already starting to get grubby in our relatively low-mileage tester.
As for storage, it’s par for the course. There’s a wireless charging pad tucked under the dashboard, a pair of cupholders, and a smallish centre console storage box with a split lid. You’ll also find the usual passenger-side glovebox and generously sized bottle holders in the doors.
Connectivity options seem limited at first, but there are two USB-C ports hidden by the protruding centre console. Similarly, there’s a 12V outlet inside the central box.
The second row is quite spacious, with legroom unlikely to be an issue for most passengers. Appointments are limited, though – there’s a fold-down centre armrest with cupholders and dual rear-facing air vents, albeit with no isolated climate controls unless you spring for the $4385 Comfort Package.
At least there are no fewer than four USB-C ports, even if two are positioned on the plastic panels covering the front seatbacks. These serve the accessory ports on each seat and supply devices using optional tablet holders, though these unique fittings can also be used for things like coat hangers.
We do like that the rear bench is still quite comfortable, with relatively aggressive sculpting for the two outboard positions. The same can’t be said for the middle seat, which is narrow, raised, and impacted by the driveline hump.
The boot is decently sized, but we wouldn’t call it expansive. It’s 20 litres smaller than in the Mercedes E-Class and 10 litres smaller than in the Audi A6, at least on paper, and it feels quite narrow between the rear wheel-acrhes.
There’s only a small, squared-off cargo area in the middle, but it extends nicely towards the front of the car. The rear seats also fold down to fit longer items, and it should still be serviceable for a couple of suitcases or groceries.
A plus is the powered bootlid, which can be opened via a button on the driver’s door card to suit chauffeurs, but it’s disappointing that a tyre repair kit is included instead of an actual spare wheel of any type.
| Dimensions | BMW 540d xDrive |
|---|---|
| Length | 5060mm |
| Width | 1900mm |
| Height | 1515mm |
| Wheelbase | 2995mm |
| Cargo capacity | 520L |
To see how the BMW 5 Series stacks up against its rivals, use our comparison tool
What’s under the bonnet?
Powering the 540d is a 3.0-litre inline-six-cylinder turbo-diesel, which when paired with a 48V mild-hybrid system produces up to 223kW of power and 670Nm of torque. Drive is sent to all four wheels through an eight-speed automatic transmission.
| Specifications | BMW 540d xDrive |
|---|---|
| Engine | 3.0L I6 turbo-diesel mild-hybrid |
| Power | 223kW @ 4000rpm |
| Torque | 670Nm @ 1500-2500rpm |
| Transmission | 8-speed automatic |
| Drive type | All-wheel drive |
| Kerb weight | 1980kg |
| 0-100km/h (claimed) | 5.2 seconds |
| Fuel economy (claimed) | 6.5L/100km |
| Fuel economy (as tested) | 5.5L/100km |
| Fuel tank capacity | 60L |
| Fuel requirement | Diesel |
| CO2 emissions | 172g/km |
| Emissions standard | Euro 6 |
| Braked tow capacity | 2000kg |
Our week with the car primarily involved highway commuting, though we got caught in a couple of nasty traffic jams. There was also a trip through Melbourne’s inner suburbs, and a return drive on higher-speed country roads.
Even so, our recorded fuel economy figure was impressive and noticeably lower than BMW’s claim.
To see how the BMW 5 Series stacks up against its rivals, use our comparison tool
How does the BMW 5 Series drive?
Quiet and comfortable is what German luxury limousines have historically been known for, and the 5er is no different.
In fact, you’d be forgiven for mistaking the 540d for anything other than a diesel, such is the level of refinement and serenity inside the cabin. It’s remarkable and it leaves little excuse for road rage in this car.
I’ve never been so relaxed in traffic jams as I was in this 5 Series, since 45 minutes of complete gridlock on a Melbourne freeway were made much easier by the cabin’s comfort and fantastic sound system. It’s perhaps not the most poignant of metrics, but it does demonstrate just how pleasant the 540d is to be in.
Once you’re on the move, wind noise is imperceptible, and road noise is impressively quiet if not a touch louder than the previous-generation model. Even on the optional 21-inch wheels, it’s easy to cruise along at 110km/h without being worn out by the sound of the road below you. The standard 20s would still be preferable, though.
It’s exactly how a car of this type should be, and the refined package is only strengthened by the fantastic engine under the bonnet.
The diesel-six is buttery smooth and barely raises its voice when you lay into the throttle. If you do, it responds with effortless gusto, pulling the two-tonne sedan along without a hint of hesitation or struggle.
It’s arguably the perfect engine for this application, especially when you consider the four-pot alternative bolted to the 520i. Additionally, the all-wheel drive layout provides a real sense of security and sure-footedness in less than ideal conditions, and the cornering traction for which BMW’s executive cars are known.
Throttle response is sharp, and the eight-speed auto has no issue sorting itself out. You can take control using the steering wheel paddles if you like, or hold the downshift paddle to access 10 seconds of full-power performance in ‘Boost’ mode – ideal for a quick overtake.
Despite being a diesel, the car isn’t boring to drive at all. While the engine’s muscular power delivery gives the 540d a bit of an austere vibe, the vehicle’s dynamics haven’t been compromised by the pursuit of comfort and efficiency.
For one, the steering feel inspires confidence in a way any BMW should: near-perfect weighting and predictable, direct response. The weight naturally leans toward the lighter side in everyday driving modes, yet there’s still a good balance between surface feedback and ease of use.
The ride is also plush without being floaty, and while rough Victorian roads aren’t completely ironed out, the suspension does a good job of managing them.
Things firm up in any of the sportier modes, backing up the 5er’s strong chassis with much more substantial steering feel. Adaptive damping is standard on the 540d, and the firmer setting noticeably reduces body roll during harder driving, improving cornering stability.
It definitely isn’t as sharp or, frankly, as brutal as a BMW M-car, but we like that the 540d is capable of wearing multiple hats. It excels as an executive commuter and impresses as a long-distance hauler thanks to its diesel torque and efficiency, yet can still let its hair down when harder driving is asked of it.
The cherry on top is BMW’s top-notch driving tech. As with the level of customisation inside, you can personalise driving modes by selecting from multiple independent levels of power output, suspension firmness, and steering weight, providing an excellent degree of control and options to suit all tastes.
But safety gear is arguably the car’s most impressive feature. The adaptive cruise control and lane-centring systems are standouts, as the car not only matches traffic around it seamlessly but also consistently applies more steering lock than you’d expect while maintaining speed through tighter turns.
Equally, it has no issue staying centred in its lane on the freeway, and rarely do any safety warnings pop up unexpectedly. If they do, it’s almost certainly because you’ve genuinely done something wrong, though we don’t like that there’s no dedicated button to adjust your adaptive cruising distance.
It’s simply a well-considered, nicely balanced package, placing it among the most enjoyable cars to live with in its segment.
To see how the BMW 5 Series stacks up against its rivals, use our comparison tool
What do you get?
Two non-performance, combustion-powered 5 Series variants are currently available in Australia.
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2026 BMW 520i M Sport equipment highlights:
- 19-inch alloy wheels
- Tyre repair kit
- M Sport suspension
- Dark blue brake calipers
- Illuminated kidney grille
- Adaptive LED headlights
- Power-folding, auto-dimming side mirrors
- Head-up display
- Leather-wrapped steering wheel
- M Alcantara/Veganza upholstery
- Front sport seats
- Powered front seat adjustment
- Heated front seats
- 12.3-inch digital instrument display
- 14.9-inch curved infotainment display
- Wireless Apple CarPlay
- Wireless Android Auto
- DAB+ digital radio
- 12-speaker Harman Kardon sound system
- 6 x USB-C ports
- 4 x 12V outlets
- Wireless phone charger
- Dual-zone climate control
- Power tailgate
- Panoramic glass roof
- Interior ambient lighting
- ‘My Modes’ drive modes
- Remote engine start
- BMW connected services
540d xDrive adds:
- Mild-hybrid diesel engine
- 20-inch alloy wheels
- Adaptive damping
- Leather ‘Merino’ upholstery
- 18-speaker Bowers and Wilkins surround-sound system
To see how the BMW 5 Series stacks up against its rivals, use our comparison tool
Options
Multiple options are also available for the 540d xDrive.
Comfort Package ($4385) adds:
- Heated steering wheel
- Roller sunblinds
- Front comfort seats
- Ventilated front seats
- Heated outboard rear seats
- Quad-zone climate control
M Sport Plus Package ($3231) adds:
- M Lights Shadow Line
- M red brake calipers (or dark blue metallic)
- M seat belts
Our tester was also fitted with optional 21-inch BMW Individual aerodynamic wheels, available for an additional $1692. The ‘Silverstone II’ (off-white) upholstery is a no-cost option.
To see how the BMW 5 Series stacks up against its rivals, use our comparison tool
Is the BMW 5 Series safe?
The BMW 5 Series has a five-star ANCAP safety rating based on testing conducted by sister organisation Euro NCAP in 2023.
| Category | BMW 5 Series |
|---|---|
| Adult occupant protection | 89 per cent |
| Child occupant protection | 87 per cent |
| Vulnerable road user protection | 86 per cent |
| Safety assist | 81 per cent |
Standard safety equipment highlights:
- 7 airbags, incl:
- Front-centre
- Full-length side
- Side curtain
- Adaptive cruise control incl. stop/go
- Automatic speed limit assist
- Front and rear cross-traffic alert
- Lane-keep assist
- Parking Assistant Professional
- Semi-autonomous parking assist
- Front and rear parking sensors
- Post-crash braking
- Safe exit warning
- Speed limiter
- Surround-view camera
- Tyre pressure monitor
To see how the BMW 5 Series stacks up against its rivals, use our comparison tool
How much does the BMW 5 Series cost to run?
BMW Australia backs its model range with a five-year, unlimited-kilometre warranty. Servicing for the 540d is required via an unusual ‘condition-based’ program, with pricing covered by a prepaid ‘Service Inclusive’ plan.
| Servicing and Warranty | BMW 540d xDrive |
|---|---|
| Warranty | 5 years, unlimited kilometres |
| Roadside assistance | 3 years |
| Service intervals | N/A |
| Capped-price servicing | 5-year, 80,000km prepaid plan |
| Total capped-price service cost | $3375 |
The German brand doesn’t have set service intervals for its models; instead, its vehicles have ‘condition-based maintenance’ requirements, which means the car will tell you when it’s time for a service, and even alert a dealer via connected services.
Generally speaking, services will likely roll around each year, and the five-year, 80,000km prepaid service plan means you won’t have to worry about paying each time you take your car in.
For comparison’s sake, the $3375 plan for the 5 Series works out to an average of $675 per year over five years.
That’s significantly cheaper than the $1389 required annually for the E-Class, and slightly more than the A6’s $597 annual fee. But all of them are pricier than the G80, which is free to service for the first five years.
To see how the BMW 5 Series stacks up against its rivals, use our comparison tool
CarExpert’s Take on the BMW 540d xDrive
We came away from our week with the 540d thoroughly impressed.
Yes, you pay more for it than the equivalent Mercedes or Audi, but you also get more. Their interiors may be comparable, but we’d happily spend the BMW premium to receive its well-engineered mechanicals.
It’s what you don’t see that sets the 540d apart. Behind that EV-like grille (which has shutters that open automatically when you start the car) is a glorious six-cylinder turbo-diesel that suits a large German executive car far better than the four-pot turbo-petrol engines in the E-Class, A6, and even the 520i.
There’s also the wonderful steering and well-sorted adaptive damping, which work together to control the 5 Series body with great confidence. The result is an enjoyable car to drive, and one that won’t tire you out behind the wheel.
The only real thorn in its side is the Genesis G80 3.5T, which has a larger-displacement V6 petrol engine, matches the 5er’s all-wheel drive setup, offers more buttons inside, has a dedicated climate control panel and, most importantly, is significantly cheaper.
That’s not to say its interior isn’t screen-heavy, and it’s slightly smaller than the BMW, which means less space in the second row and boot. Let’s not forget the diesel BMW is supremely efficient too, especially when you consider the six-pot G80 is claimed to use twice as much fuel as our tester did.
To us, the 5 Series’ biggest drawback is its interior tech. There’s simply too much screen and too few buttons, which makes basic adjustments a chore. The use of glossy plastic for the few haptic buttons is disappointing and can quickly look yuck, too.
That said, the interior design is prettier than the Merc’s and Audi’s, in our opinion, and a touch more characterful than the Genesis’. The ambient lighting looks fantastic and is nicely accented by the unique speaker covers, complementing both the light and dark upholstery options nicely.
All up, the 540d is a brilliant car, provided you can fork out the extra outlay from your businessman’s salary.
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