BMW often scores a home run with its generational updates, but that wasn't really the case with its E65 generation 7 Series. When this update came out in 2002, some BMW traditionalists held up their hands in horror, while others didn't know what to do with the early iDrive technology. It seemed that BMW had set its ambitions high with a fresh design, innovative technology, new V8 engine and six-speed automatic, and a brand-new interior approach.But while the company was clearly trying to move the needle with this flagship, the car received a bumpy reception in the marketplace. Today, those challenges may explain why you can find 2002 to 2008 7 Series examples for less than $10,000, which is certainly a good bargain when you consider the original proposition. Just remember to approach carefully if you do fancy such a bargain, with potentially expensive upkeep needs in mind. An E65 Can Be A Decent Buy In The Right Form BMWA BMW E65 7 Series can make sense as a used purchase now, because the value equation is firmly skewed in the buyer's favor. The overall average price sits at just under $9,500, but you can get some of the mainstream V8 variants for much less of an outlay. For example, the 745i should be somewhere in the mid-sixes, a 745Li in the mid-sevens, and a facelifted 750i in the high-eights. And those are extraordinary prices for a vehicle that would sit on a dealer's lot in the upper $60,000 range when new. In fact, you might have had to fork out almost $72k for the facelifted 750i, even before options.The bargain comes even more clearly into focus when you look at the car’s performance potential. Testing showed that the V8 powertrain and chassis worked particularly well together to make this vehicle genuinely fun to drive. The 2002 745i registered 325 hp with 330 lb-ft of torque, pushing through a six-speed ZF automatic to rear-wheel drive, and recorded a 0–60 mph time of 5.9 seconds, which was firmly competitive. By 2006, an improved 750i now had a 4.8-liter V8 with 360 hp and 360 lb-ft and this could get to 60 mph in 5.8 seconds.Whatever people thought of the styling or the interior, you were still getting a lot of performance in this full-size luxury sedan. But before you scour the marketplace for a used candidate, remember that this car did feature a lot of new gimmickry and engineering sophistication and that won't necessarily have aged well in the wrong hands. This makes it very important to ensure that the car in question is sorted and well documented, as a neglected one could turn into a nightmare. This 7 Series Became The Ugly Duckling Of The Lineup BMW Many BMW purists were upset by the E65 7 Series because of its all-new shape. This was one of the company's biggest design changes for a long time and BMW was trialing a different overall design approach that it said would soon feature in the rest of its lineup. However, many people thought that the design – which came under the supervision of designer Chris Bangle – was far too radical. They didn't particularly like the high trunk, complicated surfacing, and heavy rear end, especially when they compared it to the cleaner and more restrained E38 that preceded it.BMW took note of the uproar with its refresh in 2006, installing some new front-end panels, refining the interior, and changing the rear-end design. Other critics didn't particularly like the early iDrive system either and while the car seemed to perform okay in period road tests, those analysts criticized the interface and general ergonomics.While BMW definitely addressed those loud critics with its 2006 revisions, there's no doubt that those early missteps affected this car's overall standing. And this may be why the cars have depreciated quite so heavily, more so than just some big BMW sedan that eventually got old. The bottom line is that people didn't really love this car when it first came out, even though it certainly was a tech-ambitious luxury flagship and that's a dangerous scenario for long-term value retention. The Facelifted 750i Is Probably The Sweet Spot 2006 - 2008 BMW 7 Series - Front 3/4 angleIf you are in the market for an E65, then the best place to concentrate your search is in pursuit of a facelifted 2006/2008 750i or 750Li. These have most of what's appealing about the E65, but they also have the changes that addressed what made earlier cars hard to love. The 2006 dates were meaningful at both ends of the car and there were also detailed improvements in the cabin. BMW also rolled out a more user-friendly evolution of iDrive, revisited the instrument panel and center stack design, and tinkered with the suspension. Those are quite a lot of corrections mid-cycle, even if they didn't represent a complete reinvention of the wheel.BMW also took its update opportunity in 2006 to improve the mechanical package, with the 750i replacing the 745i’s 4.4-liter V8 with a 4.8-liter version. You could also get advanced chassis features for the period, such as active roll stabilization and available electronic damping control with self-leveling rear air suspension on some cars. Curb weight came in around 4,400 lbs for the short wheelbase 750i and while that meant that it wasn't a lightweight, it was still genuinely quick and performing in the kind of space you'd expect from an executive BMW.Today, the facelifted 750i starts to look very appealing in the marketplace as it's not that much more expensive than the earlier 745i. As a rough guide, you might have to pay around $8,500 for the 750i versus $6,500 for the 745i, but for that extra cash you're getting a cleaner front and rear styling approach, an updated cabin, and a stronger engine. And that makes it sensible to concentrate on later cars in this generation, after BMW had taken a few years to correct its course. Why Prices Are So Low In The First Place BMW BMW’s E65 7 Series was undoubtedly expensive and complicated when new and that combo can immediately point to some swift depreciation. However, when you consider that it had a controversial reception as well, you can expect the numbers to go south in the used car market more quickly again. One of the biggest challenges with a vehicle like this is that those advanced chassis systems are also aging and electronics don't get cheaper simply because the vehicle's resale value is lower. And that's probably why these cars have drifted into bargain territory.There’s also a recall history to remember. NHTSA documentation shows a 2012 safety recall for certain 7 Series models of this era because a repeated press of the start/stop button could leave the transmission in neutral rather than park, leading to a roll-away risk. Another recall covered door latch issues that could allow a door to open unexpectedly while on the road.Owners have also flagged issues related to transmission behavior, iDrive faults, oil leaks, and expensive maintenance bills. And when you look at that overall picture in the round, you can perhaps see why the E65 market is behaving the way that it is. Buy The Right Owner, Not Just The Right Odometer BMW It may be tempting to buy one of these luxury V8 BMWs if it has reasonable mileage, and it's going for far less than $10,000. You’d think that it would be a bargain in anyone's mind, but there again, reasonable mileage isn't going to make the case by itself. Service history matters far more, and you should look for evidence that a previous owner has dealt with any recall work and has properly cared for this car.You’ll also need to ensure that the owner kept up their attention levels even after depreciation had started to make the car look more disposable. And to be more specific, many shrewd buyers might opt for a later V8 rather than a more complicated V12, of the kind that you’ll find in a 760Li. Certainly those V12 cars are still impressive, but the later V8 cars offer a better balance of performance, design, correction, and reality.If you are looking for a nice BMW 7 Series that doesn't come with some asterisks, the E38 might be the way to go. However, if you're able to cope with some controversy and complication and are looking for a modern flagship with real pace, real presence, and distinct character, then you have an alternative in the E65. In this situation, a well-kept and facelifted 750i for less than $10,000 is a serious proposition, and it could even be one of the most intriguing used luxury buys of today.