If your current car isn’t in bad shape (i.e. won’t leave you stranded somewhere) and you don’t have to drive it to work, you can afford to keep looking. And the closer it gets to the new model year (August-Sept), the cheaper these cars will get.

I’ve also found there are some older Bimmers with low miles- the “wife’s car,” especially in the higher-income suburbs. But for the $2k difference a 2006 would cost me over a 2002-05 series, I couldn’t pass that up. Plus- if you get one at a dealer, they may be Certified and include a warranty. Not as good as the original warranty, but it generally covers you for 4 more years and up to 100,000 miles on drivetrain. But- the big draw there is most dealers will offer 0% financing.

Around Chicago, there are some 2004 and 05 models that are Certified. I believe the 04’s will drop off that list once the 09’s come out.

Anyway- keep looking, I had an older BMW 325e (200k+ miles!) that was a fine, solid car that still drove great. The new ones don’t show any signs of lacking that same quality. I’m sure you’ll find one you can afford.
(BTW- the insurance on them is not expensive, if you’re over 25.)

I fully understand your depression at not getting to see if that Craigslist car was what you wanted. I’ve gotten into the same position over far more minor items. You get your desire focused on a specific thing, and when you can’t get that, you feel crushed. I’ve been through that too many times with things and people. I wish I knew a cure for that, I’d pass it along. Unfortunately I think some of us are simply more prone to depression than others. We invest too much in our hopes and suffer too much when they aren’t met.