I agree with Hockeydude35. That accident is an issue - yet the car is priced like a pristine example. The price, well, that is what they're going for these days. (Used car prices are up after the 2008 crash) Is this a private sale or a dealer? Real BMW dealer or a general used car shop?
I paid about 19k for a 2006 330xi from an actual BMW dealer last year. Great condition, and they did a bunch of free work: brake pads + rotors (all 4 wheels) a new tire, paint correction. Warranty for 60 days, during which time I got a new battery.
I do feel like I overpaid a bit - but I also got a lot of value and confidence with this car. I recall at the time looking up KBB and NadaGuides.com pricing and finding it was fairly close to the pricing on my car. You can also use cars.com and or autotrader.com to price out comparable examples in a nationwide search. There are better deals to be had out there, but they're going to be of the private party variety, and you're going to have to look for them. Perhaps you'll find one here on this board.
In terms of choosing a car, a 330 is a good choice. It's a fast, reliable and luxurious car. I would not buy an 328 unless I were getting a significantly newer car. A 330 has much more stock equipment (xenons, etc), is faster than a 328, and has bigger brakes to boot! I would not buy an older M3 or something like that due to cost of ownership. I don't know if a GLI/GTI will be less to own in the long term, but it sure won't be a sexy inline six!
Of course, it should be said: going into college, not going to drive the car that much? Maybe you should buy a 10 year old accord... I waited until a few years after graduation for mine....