We bought our 1997 in about the same shape, less the shock problem. Our mechanics comment was it's a BMW, it'll run forever.
I took out the A pillar covers and may strip the headliner when it gets to sagging too bad and paint the fiberglass panel instead or re-installing a new headliner.
We plan to use the car primarily for autocross and as a backup DD. So as I change out old rubber components, I'm adding more track ready parts...M3 control arm bushings to start.
Your price seems reasonable. We paid $2k, but it came with DS1 wheels, and from a friend. | 
Hybrid Mode
