I have an 06 M5 with the SMG. I rather like the SMG and I would suggest getting the car with it. Assuming that the car has been repaired properly I have no problem getting one that had the air bags go off. The thing is, that price seems a bit steep. I bet its probably worth around 25k. I can buy an 07 M6 in Canada for 30k and our dollar is worth 25% less than the USD. And that machine hasn't been in an accident.
Thing is I bank around 5k a year for repairs on my M5. Sometimes I get lucky and nothing happens for a year but then the next year you'll have the clutch blow up and it'll be a 10k bill.
Best of luck!
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