A similar thing happened to me a couple months ago when I looked into trading my 335is in on a 435xi.
I bought my 2011 335is CPO from the same dealer I was looking to trade back into. It had 30k miles when I bought it. In 2.5 years I have put 15k miles on it. It is in outstanding shape, still under CPO wrap-up warranty, fully loaded and bone stock. I bought it from them for $39k. KBB says the mid point trade in is about $21,500 which I already thought was pretty damn low. They offered me $18,500 with no explanation as to why they were so low vs KBB. So, I walked. Maybe it's just an Autonation thing.
I ordered my M240xi from a different dealer but I am dreading fighting over my trade once it gets here.