$2,000 for an E46 M3? Why would there ever be any reason not to make that deal? Even at 4k, you could make a lot of profit parting it out. Or turn around and sell it for what people would actually pay for it... there's people out there that don't care what title it has, as long as it looks cool, has a BMW badge, and runs, someone WILL buy it for 10k+
IMO, this is a no-brainer at that price.