Thanks for the quick replies and the warm welcomes.
I would most def. purchase an '05 if I could find one for less than $25k but no luck so far for a couple of months. Dealers are asking too much and its rather difficult to find private sellers through newspapers, craigslist, and through any other online sites.
Im fine with the 2.5. Im not looking to beat anyone off a stop light nor planning on carrying too much weight in the car. Besides, the difference in insurance for the 3.0 is ample reason to go with the 2.5 at this time.
Although, the car in question comes with the bmw warranty and has a clean carfax report, Im planning on getting the car nspected by BMW prior to purchase. Therefore, Im not too worried about things being broken but rather possible specifics on the '04 that would possibly not be resolved through BMW.
Will keep posting and asking lots of questions.