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any buying suggestions?

my wife and i have been weighing the purchase of a new 318is against the
purchase of a 94/95 325is. this past weekend we found a nice 1994 325is,
red, tan leather, loaded, with 20k miles. they want 29K$ for it.

i'm looking for opinions here. used car vs. new car, 318 vs. 325. should i
spend more and get a new 328? should i spend less and get a little ti? etc.

second, but almost more importantly, if i were to go back to the dealer for
the 1994 325, what should i look for? what problems have shown up in this
car, and should i be aware of? what should i try to talk him down to on the
price?

thanks in advance!

m.