Some people have ridiculous warped beliefs that BMWs are still worth serious coin even when they're 13 years old and crippled. Car's worth 50 bucks to a guy like me because I have a firm grasp of how much hassle it is to get it running properly. To get a BMW running properly you have to fix everything. I'd say you probably got a fair deal if the rest of the car is pristine. If not you paid too much.
Pre-facelift E46 328 w/ blown headgasket for $3k? What a bargain! What a bargain for me!