YearToAvoid

2020 BMW 540i Problems, Recalls & Reliability

Verdict

No verdict

Complaint Index

13/100

#8 most-complained of 9 540i years

Based on NHTSA complaints per model-year, not a reliability rating. Methodology

The 2020 BMW 540i has 3 owner complaints and 5 safety recalls on file with NHTSA. Its Complaint Index is 13 out of 100 — #8 highest of 9 540i model years. The most reported problem area is engine (2 complaints, 67% of the total).

Complaints
3
Recalls
5
Crashes / fires
0 / 0
Injuries / deaths
0 / 0
NHTSA overall rating
Not rated
EPA combined MPG
25
22 city / 29.5 hwy

Top 2020 BMW 540i problems

NHTSA owner complaints by component group. Groups with 15+ complaints have their own page.

  1. Engine2 (67%)
  2. Electrical System1 (33%)
2020 BMW 540i complaints: complaints filed per month1Apr 2024Jan 2026Feb 2026
3 complaints filed with NHTSA from Apr 2024 to Feb 2026; peak Apr 2024 (1).

2020 BMW 540i recalls

5 NHTSA recall campaigns list this model year.

  1. NHTSA 21V598000Aug 2, 2021Engine50,024 vehicles

    Engine

    BMW of North America, LLC (BMW) is recalling certain 2020 M340i, M340i xDrive, 540i, 540i xDrive, X3 M40i, 2020-2021 X4 M40i, 745Le xDrive, 2019-2021 Z4 M40i, and 2020-2021 Toyota Supra vehicles. During engine start, the engine management software may cause loss of braking assist. Full mechanical braking (without assist) remains available.

    Risk: Loss of braking assist can increase the risk of a crash.

    Remedy: Dealers will update the engine management software, free of charge. Owner notification letters were mailed on September 17, 2021. Owners may contact BMW customer service at 1-800-525-7417.

  2. NHTSA 21V096000Feb 19, 2021Collision Avoidance & Cameras13,858 vehicles

    Back over prevention:software

    BMW of North America, LLC (BMW) is recalling certain 2019-2021 X3 sDrive30i, X3 xDrive30i, X3 M40i, X3M, X4 xDrive30i, X4 M40i, M550i, X4M, X5 sDrive40i, X5 xDrive40i, X5 xDrive50i, X5M, X5 M50i, X7 xDrive40i, X7 xDrive50i, X7 M50i, Alpina XB7, 330i, 330i xDrive, M340i, M340i xDrive, and 8 Series Coupe, Convertible and Grand Coupe, 840i, 840i xDrive, M850i xDrive, M8, 2020-2021 530e, 530e xDrive, 330e, 330e xDrive, 745Le, 745Le xDrive, X5 xDrive45e, X3 xDrive30e, X6 sDrive40i, X6 xDrive40i, X6 xDrive50i, X6 M50i, X6M, 530i, 530i xDrive, 540i, 540i xDrive, M550i xDrive, M5, 740i, 740Li, 740Li xDrive, M760i Drive, M760Li xDrive, 750Li xDrive Alpina, Alpina B7 xDrive, and 2021 4 Series Coupe 430i, 430i xDrive, M440i xDrive vehicles. When shifting into Reverse, a small portion of the rearview image may be obscured, or the screen may not illuminate. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 111, "Rear Visibility."

    Risk: If the driver relies on only the rearview camera image, the missing or reduced rearview image view can increase the risk of a crash or injury.

    Remedy: BMW will notify owners, and dealers will inspect the rearview camera software and update it if necessary, free of charge. The recall began April 16, 2021. Owners may contact BMW customer service at 1-800-525-7417.

  3. NHTSA 21V046000Feb 3, 2021Transmission & Powertrain28 vehicles

    Power train:driveline:driveshaft

    BMW of North America, LLC (BMW) is recalling certain 2020-2021 530i xDrive, 540i xDrive and 2021 740Li xDrive vehicles. The output shafts (left/right) which transfer power from the driveshaft to the rear wheels may break due to a heat treatment error during supplier production.

    Risk: A broken output shaft can lead to a loss of drive power or a rollaway condition in a parked vehicle (if the parking brake is not engaged), increasing the risk of a crash.

    Remedy: BMW will notify owners, and dealers will replace the output shaft(s), free of charge. The recall began March 24, 2021. Owners may contact BMW customer service at 1-800-525-7417.

See all 5 recalls for the 2020 BMW 540i →

2020 BMW 540i fuel economy and fuel cost

City
22 MPG
Highway
29.5 MPG
Combined
25 MPG
Annual fuel cost (EPA)
$3,200
15,000 mi/yr
Fuel
Premium
Current regular gas
$4.32/gal
national avg.

EPA figures; median across configurations of this model year. Estimate your own cost with the fuel cost calculator.

2020 compared with other 540i years

Complaint Index by model year (0 = fewest issues, 100 = most)0255075100201720182019202020212022202320242025
Complaint Index: 0 = fewest issues, 100 = most, relative to other years of this model. Avoid Caution Good Best
YearVerdictIndexComplaintsRecallsMPG
2018Avoid10031223.5
2019Caution5011124
2020No verdict133525
2021Good389626.5
2022Avoid886126

All BMW 540i years: best and worst →

Frequently asked questions

Is the 2020 BMW 540i a reliable year?
Judged by NHTSA owner complaints and recalls, the 2020 BMW 540i ranks #8 of 9 among 540i model years (Complaint Index 13/100). It has 3 complaints and 5 recalls on file. This reflects reported safety-related problems, not an overall reliability rating.
What are the most common problems with the 2020 BMW 540i?
The most reported problem areas are engine (2 complaints) and electrical system (1 complaints).
Does the 2020 BMW 540i have any recalls?
Yes — NHTSA lists 5 recall campaigns for the 2020 BMW 540i, most recently reported 2021, covering engine, collision avoidance & cameras, and transmission & powertrain.
What is the fuel economy of the 2020 BMW 540i?
EPA rates the 2020 BMW 540i at 25 MPG combined (22 city / 29.5 highway), with an estimated annual fuel cost of $3,200. Where several configurations exist, the median is shown.

Sources: NHTSA Office of Defects Investigation complaint and recall databases; U.S. EPA fuel economy data; NHTSA 5-Star Safety Ratings. Complaints are unverified owner reports.

Data updated Sep 24, 2026. Read the methodology and data sources. The Complaint Index is based on NHTSA owner complaints and recalls; it is not a reliability rating.