Gary,
The 540i is a great car. It's not great in snow, so buy yourself a decent set of Blizzak tires and decent rims (under $2000). The traction control and winter tires work together very well, and those tires will last for 4-5 years. Most of my family in Boston drive Bimmers, and I had one until recently, so I'm pretty familiar with them. You will have a pretty reliable and fun car for the next several years. As for a 2002, this is a decent deal given the condition and mileage. Take it to a local body shop and mechanic, pay them a few bucks and have them inspect the body and mechanical parts. IMO, carfax is pretty useless in comparison to a competent mechanic or bodyshop inspector. One thing that stands out here is that the CD changer isn't factory. But pioneer is compatible with BMW, so that's not a problem. As to the dealer, I'm not familiar with them, even though I'm pretty familiar with the Boston BMW crowd. Just have the car checked out. It costs you a couple of hundred up front, but you'll be happy in the long run.
If this car doesn't work out, PM me and I'll hook you up with some BMW connections. And joint the BMWCCA after you've bought one. A bunch of great people who're really into BMWs.
