It's a good deal. $7000 in damages is nothing on an M3. My friend backed into my 08 M3 just lightly with a Suburban and this dented the hood, broke one of the grills, and scratched the bumper. There was no frame damage or anything. Initially I thought it would be a $1500 repair thats how minor it was. The next day I found out that just the hood was $1800 before taxes. I got it fixed at a BMW approved body shop (European Auto Body) and they charged insurance $7500 after paint and labour.
As for the wheels, if its a winter setup then you have nothing to worry about. This car is priced accordingly in my opinion but it wouldn't hurt to ask the dealer to discount it a bit more.