Had the EXACT same experience with a E39 sportpack that I once looked at. Last minute I found out confronted the salesman. The dealer just played dumb...
imp:
BMW Z3M Coupe, Black, 2007/12/18 paid off by OUT-Surance due to accident, so yip,
it was definately in a smash, but before they scrapped it, it was baught by Inkoleko Tradings, who most likely fixed it up.