Personally I think any used car will cost money. The reason I bought my beemer was beacuse I know the engine is guranteed. I have heavy miles on my 97 328i (140k>), and I have replaced many things on it, but at least I know the car won't die on me. I don't remember but I think some Mercedies are made to go over 300k, so I think The Germans are Solid.
Anyway the price seems ok, but not great. When I was shopping around I found many "high milage" beemers, and I ended up with a sweat bargain.
bought on 08/'04 (less then year ago)
'97 328i manual 130k
Priemium package (has everything)
sale price: $8100
my price: $7500
I recommend using "Auto Hunter" if your in New England, US