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concerns when buying a '94 325is & upgrades?



I am a few days away from buying a '94 BMW 325is and I was wondering if
anyone had any buying advice.  I found one with 68k miles and barely a
scratch on it.  There is one cracked fog light lens, a very small dent
in
the drivers door, and an intermittent problem with the computer falsely
reporting a failed rear brake light.  I'm having the car checked out by
a
mechanic early this week, but a test drive and quick underhood
inspection
revealed nothing bad.  The owner is asking $13k and including a set of
BBS
Modo 16" wheels with Z-rated Dunlops on them in addition to the original
wheels with Pirelli snow tires.  The options on the vehicle are traction
control, the trip computer, and an alarm system.  This seems like a fair
price.

I'd really appreciate any advice or comments.

Additionally, I am curious about the effectiveness of various upgrades.
This car will become my daily driver and I'm on a limited budget, so I'm
not
looking for anything too extreme.  I've heard that adding the K&N is
generally not a large performance enhancement.  Does the M3 exhaust fit
the
325is and if so, is the increased performance significant?

Thanks,
Brent
- --
bwr@domain.elided
Ann Arbor, MI

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