It's in good condition and it has leather seats and tinted windows. How much would a car like this normally cost?
I am in the auto industry and I get to see cars traded in. This is a car that many people are looking to get rid of. If it were a good car (the right year with the right miles), would it be selling for $4,000? There is a reason why people dump these cars - high cost of ownership with a potential to have a major repair. Yes, they are good cars. Yes, I've seen these cars with over 250,000 miles. Yes, you may get lucky and find a car that the last owner did all the maintenance, so you only need to fill it with gas and go! Not likely, but there is a chance.
If your budget is $4,000, then a BMW is not for you. You're buying someone else's throw away. If you buy the wrong car and blow your $4,000, how bad will it hurt you? Do you have money to purchase another car? The reality is that you're buying a 12 year old car with 160,000 miles. You're buying a car that has a high maintenance cost and parts that are very expensive (with high labor rates). You're buying a car that has a high status symbol, but the majority of its life is used up.
I believe you'll be much better off using your $4,000 for a down payment on a newer, lower mileage, reliable car. Think Japanese - Honda, Toyota or Nissan.
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