I did not look up this particular car, but I'm actively shopping for an X5, and my target is an '05. I'm finding that the Private Party value on Official Kelley Blue Book New Car and Used Car Prices and Values is pretty much in line with the price in the ad you posted.

The whole one-man's-treasure-is-another-man's-trash argument there is much to be said about the relative condition, but it is difficult to argue that a feature has no value just because you don't have it now and don't care about it. The Premium Package has value whether you appreciate it or not, so you need to plug it into KBB along with other features, and then you can arrive at a value from which you can negotiate the final price.

I appreciate the Jones that some of you get for the manual transmission, but this is a feature that deducts from the final value. The fact that you cannot find a car with a stick just proves the point that a stick is not desirable and that the price has to be dropped to attract a buyer. DON'T ARGUE AGAINST THE LOWER VALUE, especially if you are the buyer. Even if your Jones grows so long that you can put it into your ear, you need to mask your excitement and hem & haw about a lifetime of working another pedal and yanking on a lever. The professionals that know this sort of stuff say that the automatic is the preferred option, and the manual is a deduct from value. Back in the olden days, the automatic was an add to value if so equipped. Today, automatic is assumed and the manual is a deduct.

For the record, I am in the camp where the stick is an attractive option so I get it that what YOU and I prefer goes against the tide.