Don,
Is your son a "car guy?" What I mean by that is does he want his first car to be something that he can enjoy learning how to drive and work on, including doing some mods? Does he have aspirations to drive on the track someday with his father?
If the answers to any of these questions are yes, I'd recommend an E30. They are stone reliable, easy to work on and mod, and available for cheap, especially ones that need some work. I really like the way my E30 drives more than the E36 (even though I'm in the market for an E36 M3, but that's another story
), and I have spent quite a few street and track miles in both.
Since you need airbags, look for a '90-'91 325i or 325is. Should be able to find something decent for less than $3k, and something a little nicer for $3-$5K.
Good luck and keep him safe,
Jim
