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Update: I emailed the dealer to ask if they could send me the Carfax report if available and whether there had been any damage repair or paint work.
They sent me the report which shows a Salvage title and Water damage. The dealer noted that there was no paint work on the car, but the engine was hydrolocked and replaced with a new one that had 350 miles; the car comes with the remainder of factory warranty through Autohaus (not sure if this means it is void through BMW dealers).
Water damage is certainly a scary thing since other problems that may not be visible now could surface down the road. Would you run for the hills or throw out a low ball offer and accept the risk?
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