I bought my 2008 with similar equipment for 53K back when BMW was offering the large incentives. So for me, 40K for a 2007 with those miles is no deal. Trust me, if it was the other way around they would kill you on that as a trade.

My best negotiation strategy is always to make sure they know you have other options and when I am ready to buy, I tell them I am giving my best offer and will buy that day.

Make sure you check the condition of the tires. If they are the originals, expect to be replacing them very soon. That will cost you another $1000+.