He should not have any problem selling it for a small profit to some kid who is in the market for a 325 or 330, and discovers that he can have an M3 for the same money. He will barely hear the words Salvage Title, because of the dreams of fat wheels, skinny tires, and a $400 eBay coilover kit running through his head.
I have never seen so many BMW's with tasteless mods in one place until we were house hunting in San Diego last year. Don't be offended, I saw a lot of reall nice BMW's there as well. But there were enough modded ones that even my wife commented on it, and she usually does not notice such things.