Hope someone can give me some guidance asap. I would like to make an offer on a 2000 BMW model 325 (Premium/Sport Package), that currently has 115000 miles and has had one owner and all service records. The car is clean and paint is in nice condition. During the test drive, I noticed the inspection light was on so I'm assuming it needs inspection 1 or 2, but forgot to ask the owner about it. I couldn't find the model in Kelly Blue Book for pricing, but owner confirms that it is a 325. Anyway, I don't know much about BMWs and I don't even know how much inspections are. If anyone can give me some tips on how much to offer that would be great. I'm not looking into lowballing anyone but want to be fair. My car budget is between $5000 and $6500. I don't know if I should try to stretch. Thanks in advance.

okay its either not a 2000 or its not a 325 because according to wikipedia they did not manufacture that model until 2001. So maybe you should really confront the owner and questioned his sources. Look at the back of the car for the emblem.

Either or you can push for a deal depending on what it was serviced for before the vehicle for up for sale. Ask for the service records and see if a timing belt, water pump and tune-up was done on the vehicle.

There is no hard and fast rule in pricing cars. The Kelly's Bluebook is always slanted towards giving a high price so that dealers/sellers can mention to buyers that they are getting a bargain.
$9000 to 7000 is definitely not a bargain, it is the normal price of a
good car
$6500 to 6000 is a good price if the car is still ok and the tires are new
or at least have thick treads
$5500 to 5000 is a steal if there is nothing wrong with the car.
Inspection 2 is approximately due at 120000. But you do not have to bring it to a dealer, a good independent BMW shop can do the same services for a lot less.
Remember that Inspection 2 and the 100k miles service entails a lot of
items to be replaced aside from the regular service (02 sensors, plugs,
transmission oil, etc. etc.). But you do not have to do it if the car is still working nicely. Check the service/repair records what had been done at 100K miles. But try to budget money for the 100k miles
requirements as soon as you can (specially the trans oil change).

I refer you to this very site