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Originally Posted by m3king
I just bought a 1995 m3, white, 2 door, loaded. It's in great shape. The car is basically cosmetically and mechanically perfect. I paid only $8,600 for it. so to me, yes, that $12,500 sticker price seems a little high. That car doesn't even have the original m3 wheels on it which make the car more valuable if its got the original rims. If you'll check out ebay or shop around you'll find some GREAT deals on m3's. Just buy one from someone who needs to sell, Because then you'll get it for a better price. The one I bought is a 5-speed, ungodly wicked when it comes to speed and it even has a sunroof which is nice.
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$8,600 for a E36 M3? That is really far under KBB value for the car, and you rarely find M3s undervalued because there is alot of demand for them in most places. Was your car a rebuilt salvage title? If not you got incredibly lucky with that car. And your comment about aftermarket wheels isn't necessarily true, there are alot of wheels that will increase your car's worth if you sell them to the right people. A E36 M3 w/ BBS LMs would sell for more then a E36 with stock wheels if you sold the car to someone that cared about that kind of thing.
Regarding the OP, that particular car could go either way.
First of all, it is above the KBB value. Technically it is valued at about $10,000.
Second, the car does appear to be modified to some extent. This could be good or bad. If you are into tuning then alot of the work will already be done for you. Odds are that when you include the value of the modifications I can see to the KBB value, this car suddenly becomes very attractive. On the downside, modifications often mean that the car has been pushed pretty hard. Generally the ideal person to buy a M3 from is a 55yr old man that drives reasonably, babies the car, and doesn't race or wear on the engine. Odds are that a modified car is owned by someone in their late 20's/early 30's that likes to have a bit more fun with the car, which can be hard on the engine.
Personally, I would get in touch with the seller and try to get a feel for his driving habits. If this guy is drag racing his car on Friday nights and tracking it on Saturdays, it would probably be more trouble to maintain the car then you want to deal with. If he seems like a reasonable guy, have a dealership or some certified BMW mechanic run an inspection on the car. If that all works out, I'd buy it.