How many miles? Honestly, you're going to have issues with that car constantly. Sunroof rattles, horrible autotragic transmission, onboard computer display will need to be replaced, plastic radiator is prone to cracking, interior leather does not hold up well over time unless well cared for, strut/shock mounts wear out. It's not a particularly good car and looks quite dated.
I'd look for a clean, low mileage E46 myself.
Engine
Significant Problems
Common problems on this vehicle are failures of the Fuel Pressure Regulator, the Ignition Coils and the EPROM in the ECM. These failures apply to the 325i only. Failure of the Fuel Pressure Regulator or the Ignition Coils will prevent the vehicle from starting.The cost to repair the Fuel Pressure Regulator is estimated at $73.90 for parts and $26.00 for labor.The cost to repair the Ignition Coils is estimated at $66.14 each for parts (total of 4 for the 318i or 6 for the 325i) and $32.50 each for labor.The cost to repair the EPROM is estimated at $20.00 for parts and $48.80 for labor.All prices are estimates based on $65 per flat rate hour and do not include diagnostic time or any applicable sales tax.
overall quality = 4/5
Air conditioner: Air conditioners that don't cool well enough may need to have some of the R-12 (Freon) removed if the system was overcharged. (1992-93)
Automatic transmission: The automatic transmission may suffer from delayed engagement after sitting overnight because the fluid drains out of the torque converter. (1992-95)
Climate control: Small flakes may come from the vents or a foul odor may be present when the A/C is operated. (1992-93)
Dashboard lights: The hazard flashers may begin flashing by themselves and the turn signals may flash at twice the normal speed due to condensation shorting out the circuit board. (1992-94)
Doors: If the central locking system unlocks itself after being locked or locks itself after being unlocked, the actuators could be defective or the trunk lock may need to be adjusted. (1992-93)
Starter: The starter may fail because it keeps running after the engine starts and eventually burns out. The root cause is a sticking ignition switch. The whole lock and switch must be replaced. (1992-94)