The BMW 540i was powered by a 4.4-liter V8 engine that produced 290 horsepower, and was available with either a five-speed automatic overdrive transmission or a six-speed manual transmission. Four-wheel anti-lock brakes, traction control, stability control, and Xenon high-intensity headlights were also part of the package.

Among the minor upgrades was an optional DVD-based navigation system. Also available was a Sport Package with 18-inch alloy wheels, an upgraded sport suspension, and revised body trim and instrument gauges.

The 2003 540i was loaded with luxury features, ranging from a state-of-the-art stereo system with a CD player to leather seats, wood interior trim, and a power sunroof.

Other standard features included dual-zone climate control, power windows, power heated exterior mirrors, a power-adjustable driver's seats, cruise control, a leather-trimmed steering wheel, a leather-trimmed shift knob, power door locks, and an anti-theft alarm system.

Although in 2003 the 540i was in the last year of the vehicle's fourth generation, and would undergo a complete makeover in 2004, many drivers prefer the overall design of the 2003 model to the current vehicles. The car's power and performance were also a major draw for drivers.