Around here (Boston) $6500 will buy a mint '89 325. That is a lot of money for the car you describe. If the timing belt hasn't been replaced recently (WITH receipt to prove) it will need to be done immediately, before driving the car. A broken belt will destroy the engine, and they should be replaced every 45,000 miles. I would offer $3500-$4500 for this car. You should look at some other, similar cars in your area to get a feel for what is available and how comparable cars are priced. Have ANY prospective purchase thoroughly checked by a BMW mechanic. Any old mechanic is not good enough and will miss potential trouble areas unique to the car. Good Luck Colin