trying to decide if I need to replace my 2005 BMW 330xi....it needs about $2,000 in work and has 125,000 miles

Selling a car is a rough gig. I have found it is easier to negotiate trading it to a dealer to get another car. Many people do not know how to do it. Also getting the deal on purchasing a vehicle is also an art. If you need a professional to do it for you go to www.CarBuyersAdvocate.com. You can see pictures & stories of people who have been helped at www.Facebook.com/CarBuyersAdvocate

It depends what it needs and how far into it you are cost-wise. If you can fix it and everything else is working, I would keep it and drive it until I get tired of it. 125,000 miles is low, and the M54 is a good engine that will give you another 150k miles easily.

Sell it to me. I have a 325i, but the xi is a highly desireable AWD model which will sell easily in certain places (like Colorado). I have found 2002 models for 6 grand there. The downside is that AWD models are harder to work on.

That's true, the 330xi is a desirable model.