BMW is reportedly increasing the price of the 2026 M5 sedan and Touring wagon by $2,400, with the wagon now starting at $123,900 before destination fees. This significant price hike comes as demand for the high-performance wagon has exceeded all expectations, particularly in the United States market where the M5 Touring is making its debut.
Market Demand Driving Price Strategy
Unprecedented Success for Performance Wagons
Earlier this year, BMW revealed that it had to increase M5 production to meet demand, with the production output split 50-50 between the two body styles—something BMW did not expect. The German automaker had initially planned for the sedan to account for two-thirds of all M5 production, but American buyers are flocking to the touring variant in surprising numbers.
Late last month, BMW M boss Frank van Meel revealed in an interview that there was “a higher demand in the US for the Touring than for the sedan”. This unexpected enthusiasm for wagons in the American market has prompted BMW to capitalize on the strong demand with strategic pricing adjustments.
Breaking New Ground in America
2025 marks the first time the wagon variant has been sold here in the United States. The M5 Touring represents BMW’s first attempt at bringing a high-performance wagon to American shores, marking a significant shift in their market strategy. Previous generations of the M5 Touring were available in other global markets but never made it to the US.
Pricing Structure and Market Positioning
2026 Model Year Price Adjustments
The 2026 BMW M5 Touring will have an MSRP of $123,900 without destination, representing a price hike of $2,400 or 2% compared to the 2025 model year. Add in the destination charge and gas guzzler fee, $1,175 and $2,600, respectively, and the 2026 M5 Touring will have a starting price of $127,675.
Comparative Analysis
The M5 Touring’s pricing strategy keeps it competitive within the luxury performance wagon segment. The M5 Touring’s six-figure price tag sure seems steep at first but considering it’s only $2000 more than the sedan and roughly the same price as the Audi RS6 Avant, it’s not impossible to justify. Even with said hikes, Audi Sport charges more for its RS 6 Avant performance longroof. Exclusively internal combustion, this version of the RS 6 carries an MSRP of $126,600 before destination for the 2025 model year.
Broader BMW Price Increases
Company-wide BMW price hikes begin July 1, averaging around 1.9 percent across models. Shockingly, the M5 isn’t getting BMW’s most significant price increase. X5 M and X6 M Competition prices are reportedly increasing by $2,500. This indicates that BMW is implementing a strategic pricing adjustment across its entire performance lineup.
Technical Specifications and Performance
Hybrid Powertrain Innovation
The new BMW M5 debuts with a plug-in hybrid powertrain and develops a total of 717 horsepower and 738 lb-ft of torque, making it the most powerful M5 to date. The e-motor fits inside the eight-speed “Steptronic” transmission. BMW is claiming a 0-60 mph time of 3.5 seconds.
Electric Capabilities
Because it’s a PHEV, the M5 Touring can travel 25 miles on pure electric power at speeds up to 87 mph. This electric range capability allows for emission-free local driving while maintaining the performance characteristics expected from an M5.
Practical Performance
Behind the liftgate you’ll find a 18-cubic-foot luggage area which can grow to a voluminous 58 cubic feet with the rear seatbacks folded flat. The new M5 Touring has up to 57.6 cubic feet (estimated) of flexible load-carrying capacity for leisure activities and trips away.
Market Impact and Future Implications
Influence on Future BMW Decisions
The success of the M5 Touring could have far-reaching implications for BMW’s future product strategy. The 2025 M5 Touring is the first time BMW has offered the performance wagon in the United States, and the automaker is weighing bringing the M3 Touring to America based on M5 sales.
Global Performance Wagon Trend
The M5 Touring’s success reflects a broader trend in the luxury automotive market where performance wagons are experiencing renewed interest. High-performance wagons have become unicorns for automotive enthusiasts. Wagons have become some of the rarest vehicles on sale with most automakers dropping wagons in favor of SUVs.
Weight Considerations
The 2025 BMW M5 Touring is a powerful plug-in hybrid wagon with 717 hp, but its 5,456-pound weight affects handling, especially in curves. BMW will be launching the car in the last quarter of 2024, and you can expect it to show up at dealers about a year from now.
2026 BMW M5 Touring Pricing Table
| Model | Base MSRP | Destination Fee | Gas Guzzler Tax | Total Starting Price |
|---|---|---|---|---|
| 2025 M5 Touring | $121,500 | $1,175 | $2,600 | $125,275 |
| 2026 M5 Touring | $123,900 | $1,175 | $2,600 | $127,675 |
| Price Increase | $2,400 | – | – | $2,400 |
| Percentage Increase | 2.0% | – | – | 1.9% |
Frequently Asked Questions
Q: When will the 2026 BMW M5 Touring price increase take effect? A: The price increases begin July 1, 2025, for the 2026 model year.
Q: How does the M5 Touring compare to competitors? A: Even with price hikes, the M5 Touring at $123,900 remains less expensive than the Audi RS6 Avant at $126,600.
Q: What’s driving the high demand for the M5 Touring? A: BMW CEO Frank van Meel shared that the majority of shoppers looking to purchase a BMW M5 are choosing to buy the station wagon model over the sedan.
ALSO READ: Ram 2500 Warlock 2026: Heavy-Duty Power at a Wallet-Friendly Price
