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I would buy it for $500. What's got you wondering? It's looks like an incredibly good deal for that price. Hell, even if the motor and suspension are totally shot, you could replace both and still have a good deal based on the pics of the body and interior.
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Cheers,
Tony 
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'07, e92 335i, Sparkling Graphite, Coral Leather, Aluminum, 6-speed
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